Is 20% Fiverr Commission Too Much

If you’ve sold anything on Fiverr, you will know about the Fiverr commission. If you’re not yet a seller, I encourage you to read the Terms of Service to find out more about it.

The Fiverr commission is a whopping 20%, which seems like a lot at first; until you remember that gigs sell for $5! That 20% is just $1 for Fiverr.

Many people complain about the commission being so high. My first instinct is to tell them that they knew this – or had the chance to know this – before they signed up for the site. But it’s important to consider why there is this 20% Fiverr commission.

Fiverr Is One of the Biggest Sites

Fiverr is one of the biggest, if not the biggest, micro-jobs website. There are now millions of people buying and selling things through Fiverr on a daily basis. For an idea, within the first 10 days of July, I have made around $430 and there is still much more time for orders to come through.

The ability to have such a large customer base is worth that commission. It helps to increase the chance of sales and make a living. There are many top rated sellers using Fiverr as their sole source of income.

Increase in Web Traffic

Starting your own business takes time. You need to build your reputation, do a lot of marketing and generally help to increase traffic to your website. This isn’t the case with Fiverr – much of the hard work is done for you.

Fiverr gigs show up on the Google search engine and Fiverr has a high page rank. It offers tools for marketing so you don’t need to learn them yourself and you can even hire a Fiverr seller to help  you out. Building your reputation takes less time so it’s worth paying the 20% Fiverr commission for that.

The Platform Is Quick and Easy to Use

There is nothing worse than trying to send large files over an outdated platform. The Fiverr platform is quick and easy to use – and there is Customer Support on hand should you run into any problems.

The new version does have some bugs but that doesn’t mean the support isn’t still there. Messaging people and delivering work is still just as simple; with a click of a button. The site is also secure for sending documents and using your PayPal for receiving the money you earn.

The Money Is Paid Upfront

There are a lot of scams online, especially people not paying for the work they’ve had done. Fiverr tries to cut that out by getting the buyer to pay upfront. This money is then put on hold until the seller completes the gig. Once it is marked complete, the money is transferred into the seller’s account.

There are still some problems getting paid. The Fiverr buyer may not like the work and reject it or may choose to cancel through PayPal (even though the Terms of Service state not to do that). However, there is more protection than doing it alone.

When you consider what Fiverr does, the 20% Fiverr commission doesn’t seem as bad. Remember to look at it as a figure too – that’s $1 out of your $5, which is very little for Fiverr!