Fiverr makes money through several key revenue streams:
1. Service Fees: Fiverr charges sellers a commission on each transaction. When a freelancer completes a job and gets paid, Fiverr takes a percentage of the total amount. This fee typically ranges from 5% to 20%, depending on the price of the service.
2. Buyer Service Fees: In addition to charging sellers, Fiverr also imposes a service fee on buyers. This fee is added to the purchase price and varies based on the total order value. It helps cover the platform’s operational costs.
3. Fiverr Pro: Fiverr offers a premium service called Fiverr Pro, where highly vetted freelancers can list their services. This service attracts higher-paying clients and allows Fiverr to charge higher fees for premium listings.
4. Fiverr Business: This service targets businesses looking for a dedicated space to manage projects and collaborate with freelancers. Fiverr charges companies a subscription fee for access to this service, generating additional revenue.
5. Promoted Gigs: Freelancers can pay to promote their gigs within the Fiverr platform, increasing their visibility and chances of getting orders. Fiverr earns revenue from these promotional fees.
6. Affiliate Program: Fiverr has an affiliate marketing program that allows individuals and businesses to earn commissions by promoting Fiverr’s services. The company benefits from increased traffic and sales through affiliates.
7. Additional Services: Fiverr sometimes offers add-ons or packages for specific services, allowing freelancers to increase their earnings and Fiverr to earn more through upselling.
Through these various channels, Fiverr successfully monetizes its platform while providing value to both freelancers and buyers.
