Home » News

Fiverr Business Model | How Does Fiverr Work and Make Money?

Fiverr Business Model | How Does Fiverr Work and Make Money?

Founded in 2010, Fiverr is a marketplace for Freelancing services that operate online. It was the idea of Two Israeli entrepreneurs, Micha Kaufman and Shai Wininger to develop a two-sided online marketplace supporting freelancers and the requirements of SMBs. The services that are offered on the platform include programming, designing, video framing, translation, and more.

The website was founded in 2010 and just two years after its launch, it managed to host over 1.3 million Gigs. The platform is majorly dominated by adults for full-time or part-time work. The mission statement of Fiverr says that “Our mission is to change how the world works together.” Fiverr runs with an idea that Digital services should work just like the digital purchasing and selling of products over eCommerce websites.

Fiverr Business Model

Terminologies to understand

Let us understand a few terms about Fiverr before going deep into its working

1. Seller

A seller is a registered user of the platform which provides services to the people who post projects. Sellers can be small-scale freelancers or companies that provide the required services. They can search for jobs over the platform as per their skill set, complete them and get ratings and money.

2. Buyer

The buyer would be the user who will post the project i.e the person or company who requires services. They can talk to multiple service providers and then decide whom to go for. They have to pay freelancers or companies in order to get the work completed. They play a major role in running the platform as without them there would be no work over the platform.

3. Post a Request

A registered user can post a request which basically means posting a project. In this request, he/she would mention the details of the project to be completed. For example, if a person wants his company logo to be designed then he would post something like “Design a log for a clothing brand”

4. Gig

A gig is a small job performed by a service provider.

5. Gig Extra

As the name clearly indicated, Gig Extras are the extra money that a seller takes or a buyer pays to get some extra work done. For example, if a buyer is paying $20 for 500 words of content then in order to get a total of 1000 words, he needs to pay an extra $20 to the seller.

6. Gig multiples

Gig multiples mean that you can re-order your gig multiple times. The number of Gig Multiples increases when the level of the seller advances.

How Does Fiverr Work?

Fiverr bridges the gap between service providers and buyers. Both types of users have to first sign up on the platform in order to provide work or services. Fiverr gives you 80% of the project value. On this platform, you can post a project even for $5 and get it done. The platform is powered by lakhs of freelancers who can do your work in no time.

If you have a lot of work to get done, you can also distribute the same among multiple service providers. It is not like you have paid the money and there is no guarantee for work or if the work is wrongly done, you cannot do anything about it. You can easily raise a dispute and the support people at Fiverr would help you by sorting out your concerns.

Fiverr for Freelancers

Freelancers are getting benefited to a great extent from the development of such a platform. There are a lot of people who do not get satisfactory outputs out of their regular 9 to 5 jobs. They are always in search of small works that can provide them extra bucks and also add up something good in their portfolios.

Fiverr, Freelancer, Upwork, etc. are such platforms that have been supporting such people for a long time. They do have a platform on which they can easily find people who want to get some work done. They create gigs that the customers would pay for. If they deliver quality work to the customers, they can advance levels on Fiverr and also could offer Gig Extras and Gig Multiples.

There are a lot of benefits a Freelancer can get out of Fiverr. He/she can build a good reputation which would be an invitation to more work. By building a good profile, he/she can become completely dependent upon the platform and can even get a customer who gives him/her regular work. They do not have to be bounded by one service provider. They do have a plethora of options to choose from. Moreover, it is very easy to start and there is the security of payment since it is a renowned platform.

Fiverr for Buyers

It is an era of startups and the people behind them run on a very tight budget initially. So, it is good news for such people that Fiverr gets a lot of work done for you for a few bucks. You do have plenty of options in front of you. You can get as many freelancers as you want to get your work done. There are a lot of gigs that remain on Fiverr which can be useful for businesses.

Though, being a buyer, you need to search for the right freelancer that can do your work perfectly. The platform is an easy place to live on. You just have to search for the best offer, place the order, provide the project description and required details, pay for the service, and wait for orders to come to you.

The buyer can also ask for changes if he/she does not get what was wanted. After everything gets completed, the work, and the modifications, the buyer can rate and review the seller that is the Freelancer. The rating and reviews form an important part of the platform as it helps other buyers decide whether or not to give work to a freelancer.

Revenue Streams of Fiverr 

After having a look at how Fiverr works, it is predictable that it must be earning money. Fiverr makes a huge amount of money through commission and processing fees by the buyers and sellers. Buyers need to process payment for their orders upfront whereas the sellers keep 80% of each Gig that has been completed successfully. Fiverr takes a commission of 20% from each and every Gig that has been sold and makes money of $1 for purchases up to $20 Gig. With reference to the orders above $20, 5% of the total would be taken from the buyers.

Fiverr Value Propositions 

There are two key players in the business model of Fiverr. One is a seller who is a freelancer always looking for work and the other is a buyer that is a business of all sizes and wants to outsource digital activities.

For Sellers, here is the list of major values provided by the platform.

A. Find a job easily:

The platform has a lot of searching and filtering options through which freelancers can easily get a job. Instead, if they try to find the same over Google or social media, it might become a tough job. Fiverr is a frictionless platform that offers real value for your efforts and money.

B. Get huge inventory:

Fiverr not only makes you find a job quickly but also serves you with a wide variety of options through which you can select whatever suits you.

C. Clear scope of work:

Fiverr asks the buyers to describe services before the project is handed over so that freelancers can easily understand the scope and quote accordingly. It protects them from facing future disputes which are generally happening in the online industry.

D. Flexibility:

Freelancers can easily deliver services from where they want. They just need to have an internet connection in order to manage the project and deliver it on time.

For Buyers, here are the benefits

A. Trusted brand:

Fiverr is an old and trusted brand that has been delivering services for since long. You can trust the platform and its support services in order to get your work on time.

B. Pool of Freelancers:

You have a big troop of freelancers to choose from. You also get to see their ratings and reviews so that it becomes easy for you to decide which one to go for.

C. Wide variety of services:

Fiverr has over 200 categories of services that help buyers in getting almost all the work done for their brand. A brand initially needs branding, programming, designing, etc. and Fiverr has all of that basically. So, it is the one-stop solution for you. If you come here once, you do have to move to another platform in order to get any online work done.


Freelancing has become a good source of part-time jobs these days and online business entrants also look forward to protecting themselves from spending extra money for getting small works done. So, we believe that Fiverr is going to every level to serve its users the best way.

VerveLogic can be your one-stop solution for mobile app development and web development because we have a team of experts and market experience. You can get your app or website developed at the best price possible.
Also, if you are looking for branding solutions or online marketing for your brand then you should check out VerveBranding and Verve Online Marketing today and make your brand stand out.

(Visited 1,345 times, 1 visits today)

Related Posts

8 thoughts on “Fiverr Business Model | How Does Fiverr Work and Make Money?

  1. Stany Zjednoczone Ameryki

    A helpful share, I just passed this onto a student who was doing a little analysis on this. And he in fact purchased me lunch because I found it for him.. smile. So let me reword that: Thank you for the treat! But yeah Thnkx for spending the time to talk about this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more info? It is extremely helpful for me. Big thumb up for this article!

  2. Ekonomia Podaż

    I would like to thank you for the efforts youve got produced in writing this post. I am hoping the exact same most effective function from you within the long term too. In fact your creative writing abilities has inspired me to start my very own BlogEngine blog now.

  3. Serce

    I really enjoy this theme youve got going on on your site. What is the name of the template by the way? I was thinking of using this style for the web site I am going to build for my class project.

  4. Webmaster

    This is a superb piece, I found your weblog browsing bing for a related theme and came to this. I couldnt come across to much additional information on this piece, so it was pleasing to locate this one. I will certainly end up being back again to check out some other posts that you have another time.

  5. Webmaster.m106.com

    A thoughtful opinion and ideas I will use on my blog. Youve obviously spent a lot of time on this. Congratulations!

  6. bike accident lawyer near me

    Oh my goodness! Impressive article dude! Thanks, However I am having issues with your RSS. I donít understand the reason why I cannot join it. Is there anyone else having identical RSS problems? Anyone that knows the solution will you kindly respond? Thanx!!

  7. truck accident law firm near me

    Excellent article! We will be linking to this particularly great post on our site. Keep up the great writing.


Leave a Reply

Your email address will not be published. Required fields are marked *


Keep updated with the latest technology