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How Fiverr makes money

Fiverr is a top-ranking platform for freelancers. Millions of freelancers are making money by using this platform after rendering their services. Fiverr makes money through the transaction and services fee. 

On Fiverr, the freelancers sell their services to involved clients or buyers. Fiverr has become the World’s largest digital marketplace. 

Fiverr was launched in 2010 by Israel. Initially, it allows a few services to offer to their sellers. Now, multiple Gigs of services are available on Fiverr. 

A seller offers his services via Gig, whose price decided the seller. These sellers offer different prices for different levels. The seller can perform programming, writing, graphic designing, and video editing on Fiverr. 

Fiverr contains a record of his sellers by way of a profile. This profile assists the buyer in hier skillful sellers for his project. These purchasers read the profile of sellers and choose the best one. Most of the buyers consider the rating of the seller and then suggest the project. In this situation, the beginner on the Fiverr whose rating is zero should struggle hard to grab the buyers. 

How does Fiverr make money?

After processing a successful transaction between the seller and buyer, Fiverr charges a percentage fee to the seller. The fee sum accumulates money for Fiverr. Usually, a seller pays 20 percent of his processed transaction to this platform. 

For example, if a transaction conducts between the seller and buyer into $50, then its 20% means $10 gets the Fiverr.

Fiverr is one of the best digital marketplaces to place your order, where you get multiple services at your desired rate. Fiverr promise to provide you best services that you get on other platforms like Upwork etc. Besides this, Fiverr protect your payment and save the freelancer from scams, and you get to access a developed service. 

On this platform, you get entrance to the quality service of the seller at the time of delivery by denoting the charges after analyzing the seller profile. It removes the chances of uncertainty that occurred in online freelancing. 

Funding, Valuation, and Revenue

Fiverr’s accumulated revenue is $111 million in the six series of venture capital funding. 

Accel, GC Capital, Bessemer Venture Partner, Qumra Capital, and many other investors included that raised revenue for the company. Fiverr also gather $110 million, subsequently its IPO in June 2019. The per-share price of Fiverr is $21. According to Yahoo Finance, Fiverr share meriting is $60. 

Research shows Fiverr raised revenue in its first financial year of $107.1 million. This research is showing its progress that is more than 42% from the previous years. While the company lost money posted on GAAP net loss of $33.5 million and non-GAAP was $16.8 million. Along with this, users consume $170 to offer several services on Fiverr. 

The value propositions of Fiverr

To get a reliable position for a company required a magnificent alignment for several factors. A company prepares productive steps to maintain the company level. These ingredients or efforts allow a business model to run efficiently. These business models provide a leading way to deliver the services. Once a business model becomes viable for the players, the organization gets interacting level, as the Fiverr has got. It is a well-developed company and manages billion of accounts. Fiverr unlock its growth journey by focusing on several prospectuses. 

It reacts to a two-sided digital marketplace, the business model for buyers and sellers. 

Buyers: are persons who are delivering outsource digital activities. 

Sellers: are personalities who are watching the opportunity to get financial independence for their survival. 

Societal and cultural events are patterns that change and authorize a company to develop toward technology. 

An organization crafts a pattern in society and possesses a value proposition. These trends and macro changes directly impacted the company’s progress, as Fiverr also gets the effects of these changes and constructs some strategies to compete with these concerns. 

  • Fiverr offers a Do-it-for-me movement in which the relevant professionals get the work from outsources. 
  • Companies who are not insisting on quality talent as digital platforms permit the organizations to hire a freelancer for task completion. 
  • As freelancing growing Fiverr provided more talent and more options on a versatile range of talent. 
  • Technology and digitalization allow the buyer and seller to get the desired transaction. 

Fiverr value proposition for buyers:

Buyer experience on Fiverr:

Fiverr provides a hundred services to browse and to find the best freelancer for the job. Buyers get multiple professionals for a task to perform the buyer task. These purchasers can analyze their expertise from their profile and can hire them for their projects. 

Fundamental values of buyers discuss below:

Value for capital: 

Fiverr providing a wide range of digital services to find the best freelancer for task completion is much easier and saves time and money. 

A comprehensive inventory of digital services: In 2019, Fiverr offered 200 divisions of services along their price tags start from $5 to thousands of dollars. 

A distinct collection of freelancers: 

Fiverr is a source to get access to thousands of freelancers capturing professional skills. 

Fixed price with quality work: On Fiverr, there is no need to make bargaining. The buyer gets a transparent quality rating system on Fiverr along with the confirmed delivery time. 

Trusted brand: A buyer gets to fix everything on this platform to avoid disputes and scams. Fiverr updates its terms and conditions to conduct the continuous work of professionals and talented freelancers. 

Fiverr value proposition to sellers:

Seller analysis of Fiverr:

As you know, Fiverr is an analytical platform where sellers can track their journey of success and monitor their transactions. 

Maximum project provider: 

Fiverr is the only platform, where the seller and buyers get interacted with each other to conduct a deal. This channel provides a wide range of tasks to eligible persons. 

Flexibility and administrative control: 

The flexibility and administrative policies make Fiverr more reliable for freelancers to get more work and render their services more efficiently. 

Frictionless payment process: 

This platform holds a well-managed payment method when a task is completed or the work of freelancers has finished, and the buyer is satisfied with the services than the amount of deal delivered to the freelancer by the Fiverr, not from the buyer. 

Credentials storefront on seller page:  

Freelancers can conveniently showcase their services or past work as they show on the website. As compared to the website, the showcasing of work on Fiverr is much comfortable.  

Business support: 

Fiverr provides complete customer support to freelancers by this platform and through buyers. 

Successful management and support: 

On Fiverr, a freelancer gets support on every phase of his work, and then it can track his success and performances by the rating and comments of buyers. 

Overview in making money: 

This online digital company possesses a mission ( How the World can work together). Entrepreneurs establish this organization who had the boundless experience of working with freelancers. Fiverr introduced a working model that makes getting work on Fiverr easier as you are purchasing a thing on Amazon. 

 This online market is providing a unique approach to doing business or freelancing work. If you are running a business, you can get appropriate talent, consultancy via this platform. It provides you transparent expertise that the buyer can show on each Gig, with the transaction history, reviews, and portfolio. Thus, the buyer can choose the best one for his task’s completion. 

 How Fiverr is effective for freelancers: 

Fiverr e-commerce based platform able freelancers to get direct access to buyers. It saves the time and effort of bidding that a freelancer does on the marketing of a project. Fiverr is responsible for entrance buyers toward freelancers. Fiverr provides all adequate equipment and back-office tools after an order place to run the freelancer business efficiently. The Fiverr digital market provides extensive market opportunities.

Freelancer earning through Fiverr :

 A survey shows a freelancing community earns $750 Billion annually in the U.S.A. The current figure shows $100 Billion that is increasing continuously. As Fiverr is launching new categories, the earning figure of freelancers is extending. Fiverr is available in 160 countries, and its 70% generated revenue collects by English-speaking countries. 

The time is passing the online work demand is increasing day by day, especially the pandemic Covid-19 beside this lockdown situation increased the demand for online work, and experienced faculty is available for work. The trend of freelancing is prevailing as a forest fire. 

Eight basic categories are flourishing rapidly on Fiverr, in which logo designing, voice-over, desktop mobile game creation, and 3D product animation are on the top of the list. Freshly, Fiverr roll out some stores for industrial use cases for the maintenance of cross-category infrastructure. This platform also prepared a proprietary liquidity management system. Fiverr’s allowing the buyers and sellers for the last nine years, to earn money by finding the best professional freelancer for the work completed. 

Usually, Fiverr generates revenue by transaction-based fees. Once an order place buyer pays a 5% service fee, the minimum rate is $2. After the completion of an order, Fiverr obtains 80% of the Gig price from the seller. 

Revenue and financial highlights of Fiverr

Fourth Quarter 2019 Financial Highlights:

Fourth-quarter of 2019 Fiverr’s generated revenue was $29.5 million, which was an increasing figure from the last previous years.

Fiverr gains 2.4 million active buyers till December 31, 2019, while its buyer’s figure of December 31, 2018, is 2.0 million. 

The spending amount per buyer increased up to $170 to $145, which was 17% greater from December 31, 2018. 

Take rate figure was 26.7 % greater from 25.7% on December 31, 2019, which was 100 basis points on December 31, 2018. 

GAAP gross margin was 79.3% in the fourth quarter of 2019, which was a decreased value of 130 basis points from 80.6% in the fourth quarter of 2018, while the Non-GAAP gross margin in the fourth quarter of 2019 decreased 80.8%. 

GAAP net loss was $7.4 million in the fourth quarter of 2019, per-share value $0.23 raised to $0.84 in the fourth quarter of 2018. Non-GAAP net loss was $2.7 million, and per-share value raised from $0.08 to $0.16 in the fourth quarter of 2019. 

Fiverr adjusted EBITDA1 grew $3.3 million to $4.1 million in the fourth quarter of 2019. 

Financial Highlights of 2019:

  • Fiverr earn $107.1 million in revenue in 2019 that is greater from 2018. 
  • Active buyers grew 2.4 million that is 17% greater than the previous years.
  • Spend-per buyer value increased from $145 in December 2019 that figure is 17% above value from the past years. 
  • Take rate value at the year ended 2019 was 25.7% to 26.7%. 
  • GAAP gross margin was 79.2% in 2019. 
  • GAAP net loss was $33.5 million in 2019 and per-share value increased by $1.67 to 5.42 in 2018, while GAAP net loss in 2019 and per-share value $0.58 to $0.89 in 2018. 

Fiverr adjusted EBITDA upgrade in 2019 to $18.0 million, while in 2018, its figure was $21.0 million. 

Current Business Highlights

Fiverr logo maker is the recent addition to the product family to make a more reliable and comprehensive platform. 

This platform upgraded its infrastructure to introduce more services and capabilities. 

This online marker expanded its categories by introducing a new catalog that contains 100 divisions, seven new industry stores launched in 2019. 

Financial Outlook:

  • Fiverr initial outlook for the year 2020 based on continuous growth. This progress connected with the business and with the development of freelancers and buyers. 
  • The revenue figure of Fiverr is $32.0 to $33.0 million. 
  •  The growth rate is 35% to 39%, while its adjusted EBITDA is $5.5 million to $ 4.5 million. 


Fiverr is one of the non-matchable platforms. This platform provides online jobs to millions of freelancers. Fiverr gets a fee when any deal takes place between the seller and buyer. Fiverr assists the buyers to explore the best professional to do the job. Thousands of dealing conducted on this platform. Fiverr accepts an enormous profit with the fee of buyers and sellers. That’s the way Fiverr earns.

If you want to know how to create a Fiverr gig for content writing then this article can help you to create a content writing gig on Fiverr. Create your content writing fiverr gig with these researched gig titles and tags.

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