How does Fiverr Work in 2022: Ultimate Beginners Guide

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by Timothy Ronaldson

Fiverr is one of the many online marketplaces out there in which buyers and sellers can connect.

You might be asking how does Fiverr work and whether you can make money off of it.

If you’re asking what is Fiverr, you’re not alone. Plenty of people today could be confused about this online marketplace, while others are experts.

Below is a full in-depth guide on what Fiverr is, how it works and how you can possibly make money on it.

How does Fiverr work for beginners?

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Fiverr is a site where everyday people can sell digital services. Unlike other marketplaces such as Amazon, Etsy or eBay, Fiverr is more about selling services rather than goods.

For instance, people list services such as:

  • Design for Websites – People can help you create a website you have in mind
  • Content Writing – Freelancers and professional writers can offer their written services
  • Graphic Design – This can include everything from creating logos to posters
  • Voice Overs – People with booming voices can offer their services for many uses

You can also post more generic services such as general virtual assistance to make money on Fiverr without skills. You can find similar jobs on Upwork without skills as well.

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Users can simply sign up for an account at Fiverr and begin to either list their services for sale or make a purchase.

If you’re new to Fiverr, it’s pretty easy to browse around by categories or through the search bar at the top to learn how to work with Fiverr.

When you do this, you’ll be brought to a results page that will have a bunch of gigs listed that you can purchase.

Trend on the Rise

Fiverr began relatively small, with only eight categories in 2010. Today, there are approximately 3.42 million active buyers on the site. So, if you have services to sell, Fiverr is potentially a great site for you.

What is a Fiverr gig?

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A gig is what Fiverr calls the listing for the various services that are offered on their site.

Basically, a gig is a micro-job that people create for others to purchase. It can be just about any type of service that you can think of.

This is a way for students to make money at college without a job, or at least without a set schedule.

The site started out by offering every gig on their site for only $5, which is where they got their name Fiverr from.

However, today, there are gigs that cost a wide range of prices. As a result, the gigs aren’t really micro-jobs anymore.

This has meant that Fiverr has become much more of an online marketplace that connects people around the world for jobs that need to be completed via services that are offered by different people.

In many ways, Fiverr has become a different type of freelancing marketplace, and it’s through the gigs that people are able to connect with each other.

In the simplest form, a gig on Fiverr is simply a posting for a service, but in reverse to other freelancing sites.

Instead of companies posting jobs that they need a freelancer to complete, the freelancer posts their skills and services that they offer through gigs.

Many companies use Fiverr as the best place to hire virtual assistants by searching for that category and perusing the available gigs.

Then, people or companies can purchase those gigs for a price and get what they need fulfilled.

Tactic for Success

There are many ways to make your gig stand out from others on Fiverr, if you’re looking to sell. If your skills are in a highly-competitive field, such as graphic design, a great idea is to provide examples of your past work. This will help engender confidence in your ability to do the gig.

How do you make money on Fiverr?

There are many ways that you can make money listing your services on Fiverr. To do this, you’ll need to create a gig or gigs that will describe what the customer will be purchasing.

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In your gig, you will need to list some basic information, such as:

  • Service – A description of what service you are offering
  • Experience – Your background in the area for the service you are offering
  • Price – How much you are charging for the work
  • Deadline – The time frame you’ll need to complete the work
  • Deliverable – How clients will receive the work, including the format

Trend on the Rise

If you’re looking to make money on Fiverr, there are plenty of services you can offer. Proofreading and editing is one of the most profitable services offered on the site, with rates around $1 for every 100 words. This could be a great source of extra income if you’re a good editor.

Once you have created your gig, you’ll need to market it. You can list it for free on the site — up to a certain number of gigs — or you can purchase more gigs directly from Fiverr.

There are plenty of business ideas you can start today without money, just by making a simple free listing on this site.

You can also pay to have your gig boosted as a displayed featured gig.

Some freelancers will even spend extra money to market their specific gigs on Fiverr or the fact that they have an entire page of gigs that they offer on the site.

You can figure out your own style here, and figure out what works for you and what doesn’t.

Is it worth it to sell on Fiverr? Here are some positives and negatives of doing so.

Tactic for Success

How successful you are as a seller on Fiverr depends a lot on how many people see your gigs. As such, you should consider marketing your Fiverr gigs on your social media pages. This will get extra eyes on your gigs, without extra cost.

How does Fiverr payment work?

If you are purchasing a gig on Fiverr, the payment processing system is rather easy.

You will click continue and “Order Now” on a gig once you have found one that you would like to purchase.

Once you do that, you will be redirected to a payment page. Here, you’ll select your preferred payment method from the various options available.

You’ll also be given a full breakdown of your price, which will include the listing price for the gig and any fees and/or taxes that apply to this gig.

This is the part where you will also be able to enter a promotional code, if you have one.

Then, you’ll enter your payment information, click “confirm & pay,” and your order will be processed. Once purchased, an order page will be created for you.

Fiverr makes its money by charging both the seller and the buyer a fee. The buyer is charged a service fee that totals $2 for any gig valued at up to $40.

For gigs valued at more than that, the fee is 5% of the total order price.

Payments on Fiverr for Sellers

For sellers, the payment process works a little different. Once your order has been completed, 80% of the total funds will be assigned to your Fiverr account.

The remaining 20% will be put in a pending status for 14 days. Once the funds are marked as “cleared,” sellers will be able to withdrawal them.

Sellers have three options to withdrawal their earnings on Fiverr to an outside payment account — they can do it through PayPal, a Fiverr Revenue Card or a bank transfer.

For sellers, Fiverr takes a flat fee of 20% of the final price. So, if you’re selling on Fiverr, keep in mind that your total payout will be your list price, minus this 20% fee.

So, is it worth it to sell on Fiverr? Here are some pros and cons of doing so.

Can You Get Scammed on Fiverr?

Unfortunately, it’s possible to get scammed on Fiverr, just like it’s possible to get scammed with just about anything online today.

Fiverr is definitely legitimate as a site, so you don’t have anything to worry about there.

However, there is definitely a possibility that you could be scammed by a seller on Fiverr who could take your money and never deliver on what you ordered from them.

One of the biggest red flags to a scam is if a seller on Fiverr requests that you send them money outside of the platform’s payment system.

You should never do this as a buyer or a seller, as there is no recourse for you.

If a seller has a lot of negative reviews, this is also likely a big red flag that you should avoid the seller at all costs.

It’s simply not worth taking the chance that the seller won’t deliver at all on the order, or that the order will come back with low quality.

Wrapping Up

Fiverr is a great alternative online marketplace for buying and selling services of all kinds.

There is just about anything under the sun listed on the site, allowing people to connect with others who have skillsets that are in high demand.

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About the Author

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Tim is a classically-trained journalist who loves to share knowledge and information with others. In the past, he has worked in TV, online and print media, and currently works with companies to help design, create and strategize their messaging.