What Is Fiverr?
Fiverr is a digital marketplace where people can sell their professional abilities and create revenue. At the same time, Fiverr allows people to get the help of experts to work within a specific budget.
Fiverr was established in 2010 in Israel by Micha Kaufman (CEO of Fiverr).
More than 1 million people from 160 countries use Fiverr to sell and buy digital services. As the name suggests, Fiverr had a fixed rate of $5 for any tasks performed through its platform.
However, in 2014, Fiverr removed the $5 limit, and the professionals got freedom to set up the price profile according to their services.
Quick Fiverr Statistics
- Fiverr has a 27.1% visitor-to-lead conversion rate
- 545 employees are working at Fiverr
- Fiverr had only 8 service categories when they started in 2010
- 21.67% of traffic on Fiverr comes from the US
- 53.14% of Fiverr’s revenue comes from US buyers
- 19.6% of the traffic to Fiverr comes from Search
- Fiverr has 3.42 million active buyers
- 6.28% of Fiverr traffic comes from Social Media platforms
- Fiverr achieved 20.59% annual spend growth
- Fiverr has a 79 Net Promoter Score from sellers.
What Is a Fiverr Gig?
Gigs are defined as the services created by the professionals on the Fiverr platform. Sellers make basic gigs or customize them by offering extra services to attract buyers and generate more money.
How Does Fiverr Work?
Fiverr is one of the many digital service platforms that offer professional work for money. Companies, as well as individuals, can join Fiverr as a buyer or a seller.
Fiverr stand between the buyer and seller like a referee until the task is completed. The buyer has to pay the amount beforehand, and Fiverr will hold the amount for 14 days after completing the task.
After that, the seller receives an amount from which Fiverr charges 20% as a service fee.
What Is Fiverr Pro?
As a buyer, you will be looking for works with excellent quality. Only the top professionals can deliver such outcomes. Fiverr handpicks professionals after conducting a series of tests to tag them as “Pro.”
Fiverr analyses factors such as quality of work, mode of operation, ability to complete the task on time, customer satisfaction, etc., to accommodate the seller into its pro profile.
It makes you confident to choose a pro seller for the work. You can search the keyword “Pro” on the search bar to find out the FiverrPro professionals.
The gigs listed by the seller account will be tagged “Proverified. The pro accounts work by completing each milestone.
Several short milestones are needed to ensure that both parties are on the same page for a long project.
Timeline of Interesting Fiverr Statistics
February 2010 – Fivver website was lauched by Micha Kaufman and Shai Wininger. It offered services such as translation, writing, graphic designing, coding, video editing, etc.
They named each service “Gig.” The minimum amount to perform each gig was $5, and there is no upper limit.
2012 – More than 1.3 million gigs were created during the time.
2013 – The company updated the service charge policy. It allowed niches like graphic artists, sellers, logo designers, etc., to set up any base charge to build their profile.
December 2013 – Fiverr iOS app was launched in Apple App Store.
March 2014 – Fiverr Android app was launched in Google Play Store.
2014 – An Ad from Fiverr on the Facebook platform saying ” “You’re paying too much for the design,” created a controversy regarding graphic service quality.
October 2015 – Amazon sued 1,114 Fiverr sellers for generating fake reviews on the US version of its website.
November 2015 – Fiverr raised $60 million in Series D round funding. The current valuation has reached $110 million.
2017 – The company faced criticism for promoting an unhealthy work-life balance as they proclaimed over workload as ideal to live.
June 2017 – Fiverr acquired Veed.me, a San Francisco-based online platform for Videographers. It allows users to connect with more than 3500 high talented videographers.
Veed.me has a lot of high-profile clients such as Google, Slack, Facebook, etc. Fiverr also launched its pro version.
January 2018 – Company acquired AND CO, a leading global marketplace that offers digital services and creative works.
February 2019 – Acquired “ClearVoice,” a premium subscription-based content marketing platform.
June 2019 – Fiverr got listed in NYSE.
August 2020 – Fiverr acquired SLT Consulting.
February 2021 – Fiverr reported $189.5 million in revenue, a 77% increase from the previous fiscal year. They also acquired a creative marketplace named “Working Not Working.”
1. Fiverr Has a 27.1% Visitor-To-Lead Conversion Rate
Statistics show that the take rate has a linear increase when compared to the 24.5% in 2017. A lot of freelancers depend upon Fiverr to get work from various niches.
Fiverr mainly depends upon the service charges (20% service fee) followed by revenue from supplementary items from ClearVoice, Learn, AND.CO, and promoted gigs.
2. 545 Employees Are Working at Fiverr
Fiverr charges a 20% service fee and acts as a middleman between a seller and buyer. It ensures the uncertainty related to releasing funds and delivering work.
3. Fiverr Had only 8 Service Categories when They Started in 2010
Currently, Fiverr offers almost 300 services distributed in 9 categories as Graphic and design, Digital marketing, Video and animation, Writing and translation, Music and audio, Data, Programming and Tech, Business, Lifestyle.
4. 21.67% of Traffic on Fiverr Comes from The Us
The US stands in the first position that contributes the majority of traffic on the Fiverr platform, and Pakistan comes second that controls 10.09% of the site traffic.
5. 53.14% of Fiverr’s Revenue Comes from Us Buyers
Just like Majority traffic, Fiverr receives its major chunk of earnings from America. Based on the stats from last year, Fiverr has received $100 million in profits from the US market alone.
6. 19.6% of The Traffic to Fiverr Comes from Search
Interestingly, 75.33% of traffic is created with organic search, and 24.67% comes from paid services. It shows that Fiverr is already a recognized platform opted by many professionals as sellers and buyers.
7. Fiverr Has 3.42 Million Active Buyers
Based on 2020 statistics, Fiverr has more than 3.4 million active buyers. In 2018, Fiverr had 2.01 million buyers on its platform. Stats prove that the service selling platform has been showing linear growth over the years.
8. 6.28% of Fiverr Traffic Comes from Social Media Platforms
For most digital products and services, social media marketing is the efficient marketing approach. Stats show that around 4.8 billion people in the world use social media.
Among the traffic generated from social media, Youtube contributes to 51%, followed by Facebook with 19.87%.
9. Fiverr Achieved 20.59% Annual Spend Growth
According to the statistics, in 2020, an average buyer spent $205 on Fiverr. When compared to the previous year, Fiverr has grown by 20.59% from a year earlier.
10. Fiverr Has a 79 Net Promoter Score from Sellers.
The Net Promoter Score is a standard to measure the likelihood of an application or service. The Net Promoter Score is totaled out of 100.
It is calculated based on how convenient a user recommends the service to another. The Net Promoter Score of Fiverr from buyers is 69.
11. Fiverr Is Available in More than 160 Countries
Fiverr is one of the most trusted digital service platforms with sellers and buyers from almost 160 countries. The simple user interface of Fiverr is effortless to set up and use.
Buyers can avail of service from the top professionals in the niche on a reasonable budget.
Sellers can showcase their abilities in front of an international audience and can gain good revenue through Fiverr.
12. Video Marketing Gets an Average of $18,000/project in Fiverr
Among various categories in Fiverr, Video marketing is rated as the most paid gig. Whiteboard animation, Digital marketing videos, Social media video content, etc., are some of the best sellers in the video marketing category.
The other bestselling service categories include Graphic designing, Logo making, Business card designing, SEO market contents, Content writing, Scriptwriting, Coding, and Website building.
13. 5 Countries Contribute 70% Revenue of Fiverr
According to the stats, almost 70% of the earnings of Fiverr comes from gigs purchased in the US, Australia, Canada, UK, and New Zealand.
14. $94.38 Million on Sales and Marketing in 2020
Fiverr has spent $94.38 million on sales and marketing in 2020. The company has created a unique marketing strategy that is focused on Direct with 68.90% of traffic.
15. $189.51 Million in Revenue in 2020
In 2019, Fiverr got $107.07 million in revenue, by which it got a 77% YoY increase and reached $189.51 million by the end of 2020. Fiverr has achieved a CAGR of 53.78% since 2017.
16. 58% of Fiverr Revenue Comes from Repeated Buyers
Gaining new customers is considered to be a good quality for a company. But retaining the existing customers is something incredible!
Experts point out that Fiverr maintained its buyers by offering top-quality services at reasonable rates based on the past few years’ statistics.
Hence more than half of the revenue of Fiverr is generated from repeated buyers.
17. 10 Million Fiverr App Downloads Have Been Recorded in The Play Store
Based on the March 2021 stats, the Fiverr app is downloaded 900 thousand times, and among those, android users accounted for 600 thousand monthly installs.
Fiverr designed a single app for sellers and buyers and distributed it in Google Play Store and Apple App Store.
18. Fiverr Recorded a 29.85% Bounce Rate
A bounce rate represents the percentage of people who visit a website and leave the site without spending more time.
They may just check the first page and leave the site depending upon various reasons such as boring content, complicated site UI, etc.
What Are the Major Issues Faced in Fiverr?
Every application has its flaws. Sometimes it occurs from the developer side, or sometimes the user finds it difficult to access the options on the site.
The first issue that you may face using Fiverr will be the service fee they take from your hard-earned cash! Fiverr will charge $2 for even the base $5 amount generated. Sadly, you cannot do anything about it other than focus on creating more money.
If you are a buyer and you approached a seller for service. After evaluating the service, if you feel that the work is not up to the mark, go ahead and ask for a revised work. Sometimes multiple iterations may be needed to get the correct result.
However, there are situations where you can feel that the seller is not rising up to your expectations. In those cases, feel free to ask for a refund!
Miscommunications and misunderstandings are usual while placing a job request. People who wrote the requirement will imagine something, and those who read the requirement understand it differently.
It is always better to ask a set of questions to each other before committing the work, and it can help understand the gig better.
For projects that need a lot of time, it is better to have intermediate meetings to follow up on the task.
Sometimes, the seller will delay the work or not deliver it even after the deadline is passed.
Under such circumstances, try to contact the seller to understand what went wrong. If that’s not helping, Fiverr has a good support team to help you sort out the issue.
Is Fiverr Legit Or Scam?
Plenty of scam websites and applications offer quick money for services that don’t require hard work. Well, Fiverr is not one among them, and Fiverr has set up several safety measures to make sure that nobody is misusing its platform.
Fiverr asks for specific mandatory security questions before approving the account. Such questions include details regarding background, education, etc. For sellers, Fiverr has set up questionnaires and tests of which the results will be visible to buyers.
The buyers in the application can check certain aspects of sellers, such as their professional level, user rating, and read reviews from other buyers. It helps buyers to choose the right professional who can accomplish the requirement.
Fiverr site is protected with an SSL certificate that masks your personal information and billing details and helps you to keep them confidential. It has a 24-hour support desk where buyers and sellers can approach to settle disputes.
However, you may find certain fraud accounts that work like legit accounts. For example, if you are a content writer and deliver a well-revised article based on the client’s requirement, the client may complain about the article’s quality and leave you without payment.
You may think that the article is worthless, but actually, it will be! Such fraudsters can be seen in all niches of the platform.
Buyers should analyze the seller’s details carefully before agreeing to work. Sometimes sellers will display fake ratings to get more traffic.
Under such disputes, Fiverr helps you to get a refund without any complications. A legit platform can only provide all the above standards, and hence, Fiverr is legit!
How do I Sell on Fiverr?
First of all, try to be a legit seller and not the fraud one! There may be a lot of shortcuts to make some quick money, but it won’t keep you on Fiverr for a long time.
One thing to remember is it is not easy to develop a catchy profile in a shorter time.
The first two steps are usual:
1. Set up your seller’s profile by adding all the details related to you and your niche.
2. Create your gig
Now along with these details, you can add a short video to prove to people that you are confident with your work and you actually exist! Now you can create custom packages to attract buyers.
During the process, put some additional efforts into getting better appreciation from the buyers. It would be more suitable if you focused on earning excellent customer reviews more than money in the early stages as a seller.
Once you set up a strong user rating, you can increase the fees, and more traffic will follow!
How to Choose a Seller in Fiverr?
There are a lot of fake reviews in the digital service platform, among which real talent becomes hard to find. This section will help you find out the genuine sellers on the Fiverr platform.
1. 5-star reviews are tempting. When you see many 5-star reviews, scroll them down and try to find out the negative comments. The negative comments and reviews will help you understand the demerits of the seller.
2. Don’t rush to choose the seller. Take some time and do some research. Create a shortlist of 5-10 sellers based on your requirement. And finally, select the required one.
3. Once you find a seller and are happy with the service, it’s better to keep the seller along with your journey. It isn’t easy to find talented sellers every time. So keep in touch with the seller and motivate them to become the “loyal customer.”
4. Always be clear about the requirement. Once you find out the seller,please provide them with the detailed requirement. It is a good idea to create a detailed document pointing out the condition, and you can find plenty of such records on the internet for reference. An exact requirement ensures work quality and reduces the number of back n forths in work.
5. Once you shortlist a handful of sellers, go ahead and ask for some samples and their previous works. It can help you understand whether the seller has the actual potential to create what you want.