There’s no doubt that Fiverr is a great way to get started in freelancing. But does Fiverr take a cut of your profits? The answer may surprise you and disappoint you as well.
Does Fiverr Take A Cut of Your Profits? The Harsh Truth About This Freelance Site
When you start freelancing, it’s important to find a platform that will help you grow your business. And for many people, that platform is Fiverr.
Fiverr is a great way to get started in freelancing because it offers a wide range of services that you can offer to clients. And it’s also a great way to get your name out there and start building a portfolio.
But there’s one question that many people have about Fiverr – does the site take a cut of your profits? And how much can you actually make on Fiverr?
Fiverr Does Take a Cut of Profits
Fiverr does take a cut of your profits on each and every order you complete. In fact, the site actually charges freelancers a base commission of 20% for each gig they sell. This means that you keep the about 80% of the money that you earn from your gigs. So for a gig that you sell for $5 will only net you $4 before any withdrawal fees.
Fiverr offers several ways to withdraw funds from their platform. The most popular is PayPal. When you withdraw funds to PayPal, you won’t be charged any fees. Not even from PayPal. Other withdrawal options are direct deposit into a bank account and withdrawal to a Fiverr debit card. Each of these methods comes with minimums and fees associated with them.
Advertising Fees on Fiverr
If you have the option of promoting your gigs on Fiverr then you’ll also be hit with those fees for each gig that sells on the platform. Since it’s a bid system the price of each gig can be different but it’s something to consider when determining profits for each project.
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Buyer Also Pays Additional Fees
Another fee that your buyers may complain about when ordering your gig is the processing fee. This fee is charged to the buyer and is typically a minimum of $2.50 on each gig. So with that being said here is the breakdown on a $5:
Buyer is charged $7.50 for the gig to purchase
Seller is notified of the project and delivers work to buyer.
Seller receives $4 for their work
Fiverr receives $3.50 for the project
This fee structure is why many buyers and sellers are leaving the platform. For low cost projects it’s simply not worth the time. Keep in mind also that even higher priced projects are still subject to the 20% Fiverr seller. So a $100 gig will only make you $80.
The Alternatives to Fiverr
Fiverr is one of the largest freelance websites online today. It’s made famous because it’s so easy to use and get started. But with that comes a lot of downsides.
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This is one of the reasons why many freelancers are now looking for alternatives to Fiverr. If you’re interested in finding an alternative platform for your freelancing business, here are some other options to consider:
Upwork is one of the most popular alternatives to Fiverr. The site offers a wide range of services and has a large pool of buyers. Upwork also doesn’t charge any fees for withdrawing your earnings.
There is however, a small fee when you first sign up. Upwork charges a $0.99 fee when you connect your PayPal account to their platform. After that, there are no other fees charged by the site.
Toptal is another great alternative to Fiverr. The site focuses on connecting businesses with top freelancers in their field. And unlike Fiverr, Toptal doesn’t take any commission from your earnings.
The only downside to using Toptal is that they are a bit more selective in who they allow on their platform. So if you’re just starting out, you may not be able to get approved.
Freelancer is another popular freelance marketplace. The site has a large pool of buyers and offers a wide range of services. This site has been around for many years, probably older than Fiverr as well.
Like Upwork, Freelancer also charges a $0.99 sign up fee when you connect your PayPal account. But other than that, there are no fees charged by the site.
There are however, some hidden fees that you should be aware of. First, when you withdraw your earnings to PayPal, Freelancer will charge you a 3% processing fee.
Second, if you want to offer your services to buyers outside of the US, you’ll be charged a 5% service fee.
FlexJobs is a great alternative if you’re looking for remote work. The site offers a wide range of remote jobs in many different fields.
One of the best things about FlexJobs is that they offer a money back guarantee. If you don’t find a job within 30 days, they will give you your money back.
The only downside to using FlexJobs is that they do charge a monthly subscription fee. The fees start at $14.95 per month but go down to $7.95 per month if you sign up for a year long subscription.
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PeoplePerHour is a UK based freelancing platform. The site offers a wide range of services and has a large pool of buyers.
The only downside to using PeoplePerHour is that they charge a 3% processing fee when you withdraw your earnings.
So there you have it, some alternatives to Fiverr that you can use for your freelancing business. If you’re not happy with the fees charged by Fiverr, or the quality of buyers, then definitely check out some of these other sites.
What is the best alternative to Fiverr?
There are many alternatives to Fiverr, but the best one depends on your needs. If you’re looking for a platform with a large pool of buyers and no fees, then Upwork is a good option.
If you’re looking for a platform that doesn’t take any commission from your earnings, then Toptal is a good option.
And if you’re looking for a remote job, then FlexJobs is a good option.
It really depends on your specific needs as to which platform is best for you.
How do I get started on an alternative to Fiverr?
The best way to get started is to sign up for an account on one of the platforms mentioned above. Once you’ve created an account, you can start offering your services to buyers.
Do I have to pay any fees to use an alternative to Fiverr?
Some of the platforms mentioned above do charge sign up fees or processing fees. But there are also many that don’t charge any fees at all. So it really depends on the platform you choose.
What are some of the most popular services offered on alternatives to Fiverr?
The most popular services offered on freelance marketplace sites include writing, graphic design, web development, and virtual assistant services.
Do you know of any other good alternatives to Fiverr that doesn’t include fees like Fiverr? Let us know in the comments below about your Fiverr alternatives. Also give us some feedback on the Fiverr alternatives listed above if you’ve tried them.