How Much Does Fiverr Take? (Fees Explained)

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Founded in 2010 in Tel Aviv as a way to connect talented freelancers with customers who need their unique skills, Fiverr has grown into one of the largest freelancing platforms globally.

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Although its name originated from its earliest form, in which freelancers offered small (usually online) tasks that all cost $5, Fiverr has expanded and changed to meet the demand of its sellers and buyers, with freelancers now being allowed to set their own prices.

TL;DR Summary

  • Fiverr takes a 20% cut of all fees earned on its platform. That means that if you list your fee for a project as $10, you’ll receive $8.
  • To make up for this, be sure to factor in the 20% loss when pricing your work.

How Much Does Fiverr Take From Sellers?

Luckily for newcomers, Fiverr is totally free to sign up. There are no fees at the beginning, and you can set up an account and start advertising your services to Fiverr’s huge customer base without paying anything upfront.

fiverr homepage

Of course, there’s no such thing as a free lunch: Fiverr offers a service, and they expect to get paid for it.

To earn money, Fiverr takes a cut out of every transaction you make. So, how much does Fiverr take out?

As they explain on their website, “You keep 80% of each transaction.” This is a nicer-sounding way of saying that Fiverr takes 20% out of every transaction you make. 

In other words, if a customer hires you as a Fiverr freelancer and pays $100 for your services, the payment gets processed through Fiverr, and you receive $80.

When you look at it this way, it can seem a little steep.

How much Fiverr takes from sellers is one of the biggest complaints sellers have about the platform, but many argue that the benefits outweigh the cost and that they are making more money by advertising on Fiverr than they would if they chose to advertise differently.

Plus, with many other freelancing sites taking a larger percentage, Fiverr’s 20% cut is really not such a bad deal.

Now you may be wondering how much does Fiverr take from buyers? The answer is $0. That’s right – the full 20% transaction fee comes out of your side rather than your clients’. 

DEAL

Start Selling on Fiverr Today!

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This is not necessarily a bad thing, as it encourages clients to return and makes it so that they don’t feel nickel-and-dimed (there’s a small fee for clients on processing the actual transaction itself, but this is negligible).

If Fiverr taking a cut of 20% still seems hard to swallow, simply adjust the price of your labor to make up for the loss.

For example, let’s say you’re planning to follow Fiverr’s original style and charge $5 for simple webmaster tasks. Once Fiverr takes its 20% cut, you’re left with $4. To get around this, simply charge $6 for the task. 

Sure, the difference here is mostly psychological since Fiverr is still its 20% share either way, but adjusting your fees to reflect Fiverr’s tax does technically put more money in your pocket at the end of the day.

fiverr work your way

FAQs

Does Fiverr really pay?

When it comes to selling anything on the internet, particularly if you’re using a third-party site or app, it’s good to be cautious.

Scammers are everywhere, and you should always verify the trustworthiness of a site before you use it to buy or sell anything.

Fortunately, the answer to this question is yes: Fiverr pays in a timely and reliable manner.

Although you may not like their 20% fee, Fiverr offers a reliable and safe way to get paid as a freelancer on the internet.

Does Fiverr pay instantly? If not, how much time does Fiverr take to clear payments?

Once a job or “gig” has been marked as completed, Fiverr will transfer the funds to your account (minus their 20% share).

So yes, in other words, Fiverr pays instantly, if “instantly” means as soon as the job is finished.

However, there’s an important catch: even though the funds are transferred to your account as soon as you’ve completed a job, you can’t withdraw the money for either 7 or 14 days, depending on your rating on the site.

This can be pretty annoying, but the idea is to protect clients from potentially shoddy or fraudulent work, and to make sure that Fiverr can address any problems or claims before the transaction is fully completed.

If you are a highly rated freelancer, this mandatory waiting period is shortened to 7 days, after which time you can withdraw your funds.

Why does Fiverr take a cut of my earnings?

Hey, everyone’s gotta pay the bills. To put it simply, Fiverr takes a cut of its seller’s transactions to earn money.

This is how the company makes a profit, pays its employees, and keeps its site up and running smoothly. 

Although Fiverr remains one of the most popular freelancing sites, the good news is that there are some great Fiverr alternatives that you may find preferable for various reasons.

The best alternative to Fiverr is Upwork. Sellers on Upwork offer a wide range of services, from graphic and web design to IT, sales, marketing, and more.

Upwork also offers a unique feature that Fiverr lacks, in which clients can post a job they need done, and sellers can pitch offers accordingly.

For a comprehensive list, check out my full comparison review of the best Fiverr alternatives

The Bottom Line: What’s The Deal With Fiverr’s Cut?

If you want to offer your services as a freelancer on Fiverr, you have to be okay with their terms of service, which include taking a 20% transaction fee on all payments you receive from clients through the site.

While this may seem a bit steep at first glance, it’s pretty standard in the industry: Upwork and British-based freelancing platform PeoplePerHour also take a 20% cut.

Of course, you could always opt to forego using a freelancing platform altogether and advertise your services on social media instead. This has an obvious benefit – you get to keep 100% of your profits. 

However, you’d be giving up the huge, global customer base that Fiverr and other freelancing platforms connect you with – and when you look at it that way, 20% might not seem too bad.

DEAL

Start Selling on Fiverr Today!

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References

Fiverr’s sales cut policy – https://www.fiverr.com/start_selling

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