The popular freelancing platform Fiverr is an excellent source of freelance gigs, with an active buyer base of around 2.5 million people. Whether you’re a buyer or a seller, it’s important to know how the platform works, and whether or not Fiverr takes a cut.
Fiverr takes a 20% cut of all your earnings as a seller as a fee to pay for the running costs of the platform. This means for every $10 you make in orders, you will pay a $2 fee. This is the same no matter what seller level you are. Fiverr also charges buyers a 5.5% fee on all orders.
At the end of the day, Fiverr is a business with shareholders and so it needs to generate revenue. In this article, we take a look at Fiverr fees for both sellers and buyers, before going into detail about how the platform compares to others like Upwork.
Is Fiverr Free To Use?
Fiverr is free to use, and anyone can make an account as either a buyer or a seller with no charges. However, there are charges to bear in mind when you make a purchase as a buyer (5.5% of the purchase amount), and as a seller (20% of the purchase amount). There are no other account fees.
While these charges mean that it’s technically free to use Fiverr, these are service charges rather than fees for using the platform itself. It’s free to set up an account and you will not be charged if you do not use the account to make a purchase or to sell any gigs. You may also incur fees when withdrawing your money from Fiverr, and we go into these in more detail below.
Does Fiverr Take A Cut Of Your Earnings?
Fiverr does take a 20% cut of your earnings. Fiverr’s main recurring revenue source is its transaction-based fee model. Simply put, Fiverr makes money by taking a fee both from those buying a freelance service (5.5%) and those selling their freelance services on the platform (20%).
Fiverr takes a cut in the same way that any other freelancing platform does in order to keep the business running. No matter what you’re selling on the platform or how many orders you fulfil, Fiverr will always take a cut of your earnings, but this cut will stay the same whether you sell one order or 100 orders.
How Much Does Fiverr Cut From Sellers?
Fiverr takes a 20% cut from sellers, which means for every $5 you make selling gigs, you actually only receive $4. This is the same no matter how much you make, meaning that if you sell a gig for $1000, Fiverr would take a $200 cut and you would receive $800.
So, while 20% might seem steep, the good news is that it doesn’t increase the more you earn or the less you earn. This aspect of consistency does set Fiverr apart from some of its competitors, which we will go into more detail about towards the end of the article.
You can also check out our free Fiverr fee calculator, which will tell you how much you’ll earn as a seller and also how much you’ll have to pay for services on the platform too.
Does Fiverr Take A Cut of Tips?
Fiverr does take a 20% cut of tips, just as it takes a 20% cut of all your other earnings as a seller. Tips are not obligatory on the part of the buyer, but when buyers do leave a tip, Fiverr just adds them in to the total order price before taking their normal 20% cut.
Does Fiverr Always Take 20%?
Fiverr does always take 20% of your earnings as a freelancer. However, Fiverr only takes a 20% cut when the order has been marked complete. Fiverr takes this cut on a per-completed-order basis.
This means that you will not see money come into your Fiverr account and then have some of it be removed afterwards. You will only ever receive 80% of the order total, as Fiverr takes a 20% cut as soon as the order is marked complete.
The order is marked complete by the buyer when they are happy with the order and do not require any more revisions. If they do not do this themselves, the order will be automatically marked complete after three days, but you should understand that the buyer can still raise disputes within two weeks of the order being marked complete.
This means that while Fiverr will take its 20% cut as soon as the order is marked complete, they may still refund the buyer after this if a dispute is opened up and a refund is issued. You would not see the money in your Fiverr account within this 2 weeks anyway, as there is a 2-week clearance period.
Why Does Fiverr Take 20%?
Fiverr takes 20% because they are a business that needs to make money. Whether you are a buyer or a seller on the platform, Fiverr is providing a service to you and charges accordingly. Fiverr takes 20% of the order price from sellers and they charge a 5.5% service fee to buyers.
Can You Avoid Fiverr Charges As A Seller?
You cannot avoid Fiverr charges as a seller, as they are the fee that Fiverr charges for you being able to use the platform to earn money. The 20% fee covers maintenance and updates of the platform itself and is therefore essential for Fiverr to continue running as a business.
If you try to avoid Fiverr charges as a seller by taking payment off the platform, you may have your Fiverr account disabled and be unable to sell on the platform again. This is why it is very important that you do not ask buyers for payment via any method other than through the platform itself. Fiverr requires payment on the platform because this is the only way they can offer security to both buyers and sellers during transactions.
How Much Does Fiverr Charge Buyers?
Fiverr charges buyers a 5.5% service fee per gig. This fee is 5.5% of the order price if it’s over $75, and there is an additional $2.50 ‘small order’ charge for orders under $75. Fiverr always charges these fees no matter what you’re buying or who you’re buying from.
Note: The small order charge changed in June 2023 from orders under $50 to orders under $75.
Think of Fiverr’s cut as a sort of finder’s fee. Fiverr aims to make the act of buying and selling services online as simple as buying and selling physical items. For freelancers, Fiverr potentially saves you a lot of time in terms of finding clients by connecting sellers and buyers and facilitating payment.
Fiverr fees for buyers and sellers also go towards the behind-the-scenes team. Fiverr offers technical support to its users and requires a team of employees to do this. They need wages, so Fiverr needs to make its money somehow!
Can You Avoid Fiverr Charges As A Buyer?
You cannot avoid Fiverr charges as a buyer, as this is how Fiverr makes money as a business. Fiverr charges a 5.5% fee to buyers, and this is effectively a service charge that you pay in order to benefit from the vast number of talented freelancers that Fiverr has to offer.
If you try to avoid Fiverr charges as a buyer by offering to pay the seller off of the platform, you may see your account be suspended indefinitely. Fiverr only allows you to conduct payment on the platform as this is the only way they can ensure secure transactions for both buyers and sellers.
Fiverr Fees For Buyers
Fiverr fees for buyers are as follows:
- 5.5% on all orders
- Additional $2.50 charge on all orders under $75
Fiverr fees for buyers are clearly set out before a buyer finalises a purchase. After selecting the gig they want, the buyer goes to a payment options page which shows a breakdown of the gig fee, any necessary taxes, and Fiverr’s fees.
When a buyer places an order, buyers pay Fiverr the gig fee plus a service fee. The service fee, which goes to Fiverr, is 5.5% for orders over $75, with an additional small order fee of $2.50 for orders under $75. This incentivises paying for larger orders to avoid paying more than 5.5%, as a $10 order technically incurs a 30.5% fee of $3.05!
Fiverr Fees For Sellers
While it’s free to set up a seller account on Fiverr, Fiverr takes a 20% cut of all orders. As a seller, the money you earn goes into your Fiverr account. You can then make a withdrawal from this at any time. It’s important to keep in mind that while Fiverr doesn’t charge any withdrawal fees, the withdrawal provider (e.g. PayPal or Payoneer) may charge a fee.
So, let’s take a look at Fiverr’s fees for a buyer and a seller for a $50 gig:
- The buyer pays $50 for the gig
- The seller receives $40 for completing the order (80% of the gig’s cost)
- Fiverr gets $15.25 total in fees ($5.25 service fee paid by the buyer + $10 cut from seller)
It’s easy to look at this and think you’re losing money. This is especially true if you’re dealing with orders in the hundreds of dollars, as Fiverr’s cut could be in the hundreds of dollars too. But Fiverr is providing a service, and it’s always better to have 80% of something than 100% of nothing!
Other Fees To Consider On Fiverr
Other fees to consider on Fiverr include things like bank charges and wire transfer fees. This will depend on how you decide to either withdraw your money as a seller or spend your money if you’re a buyer, and the rates will also vary depending on where you live. Some of the fees you can expect to pay as a seller when withdrawing your money from Fiverr include the following:
- PayPal – $0 fee
- Direct Deposit – $1 per transfer (US only)
- Local Bank Transfer – $3 per transfer
- Fiverr Revenue Card – $1 for withdrawal within 2 days, $3 fee for withdrawal within 2 hours
As a buyer, you may be subject to fees from your bank, and there may be conversion fees to consider as well.
How Fiverr Fees Compare To Other Websites
|Platform||Fees for Freelancers||Fees for Clients||Notes|
|Fiverr||20% on all orders||5.5% on all orders|
$2.50 additional charge on orders under $75
|Rates stay the same no matter your earnings|
|Upwork||10% on all orders||5%|
3% for eligible US clients paying via ACH (+$3 per $100)
|Rates stay the same no matter your earnings|
|PeoplePerHour||20% for $0-350|
7.5% for $350.01-7,000
3.5% for $7,000+
|10% + $0.70||Rates are on total lifetime earnings, not for individual clients|
|Freelancer.com||10% or $5 (whichever is greater)|
10% per milestone for hourly rate jobs
|3% or $3 (whichever is greater)|
3% per milestone for hourly rate jobs
|Rates stay the same no matter your earnings|
When you compare Fiverr to other freelance platforms, the fee can seem quite high. However, when you look at websites like Upwork, you find that Fiverr isn’t that far off. Upwork did have a more favorable rate in place for freelancers that had earned a lot more on the platform, but that changed in May 2023. They now have a flat 10% rate (unless you already had contracts open at a lower rate, in which case they may remain active through 2023).
If you look at a site like PeoplePerHour, Fiverr compares well again at the lower end, but PeoplePerHour works on a lifetime earning basis. This means as you earn more from any clients, you start paying lower service fees.
Freelancer.com is another website in the freelancing space, and they charge 10% or $5 (whichever is greater) as soon as you take on a project. You also pay 10% for every milestone you hit if you’re charging an hourly rate.
How Else Does Fiverr Make Money?
In addition to Fiverr’s fees for buyers and sellers, there are several other ways the platform makes money. For example, Fiverr offers additional features such as paid advertising for sellers to promote their gigs. Sellers bid on an ad spot and Fiverr then charges the seller a monthly fee based on the number of clicks the ad receives.
Fiverr has also created several affiliated products. AND.CO is Fiverr’s G Suite (now Google Workspace) equivalent, offering an integrated suite of tools for freelancers. AND.CO aims to help streamline the administrative aspects of freelancing such as managing payments, drafting contracts, and time tracking. While some basic features are free, AND.CO charges a monthly subscription fee for users to access its full suite of tools and support.
Learn From Fiverr
Fiverr also offers affiliated courses through Learn from Fiverr. Taught by top-rated Fiverr Pros and other leading experts, these short courses start at around $24. They’re specifically targeted at Fiverr sellers wanting to learn new skills and work on their professional development.
Like most tech start-ups, Fiverr has also gone through several rounds of funding. Since its inception in 2010, it has raised around $111 million in capital from investors.
Is Fiverr Worth It For Freelancers Despite The Fees?
Fiverr is worth it for freelancers despite the fees if you’re just getting into the world of freelancing. The 20% cut that Fiverr takes may seem steep at first, but 80% of something is better than 100% of nothing. But if you’re an established freelancer with a long list of clients, or if your services require more communication or working with tools off the Fiverr platform, you may wish to avoid using Fiverr.
Whether or not Fiverr is worth it for you as a freelancer will largely depend on how experienced you are, how much you charge your clients, and what you’re selling. Clearly if you’re a freelancer offering physical services, Fiverr is not going to be right for you. But if you’re a new freelancer offering one of a wide range of digital services, Fiverr may be the perfect place to get your freelancing career up and running.
Fiverr takes a 20% cut of your earnings as a seller. Fiverr always takes 20% of your earnings on the platform, meaning if your gig costs $5, you’ll earn $4 for each sale. This fee is a charge that does not change no matter your experience on the platform or what seller level you are.