Fiverr is world famous freelancing platform where you can sell-buy almost any digital service. It has a diverse community of more than 2.5 million people from around the globe.

Most of the buyers and sellers have experienced it as a great online earning platform and you can even see the reviews about it.

But the question that most of the new buyers and sellers have in their mind is “does Fiverr take a cut?” So, to explain to you all about it, I have gathered information in detail. Please read this complete article and you will get to know everything about Fiverr including the insights.

Does Fiverr take a cut?

Yes, Fiverr takes a cut from your earnings as a seller. The total cut that Fiverr takes is a solid 20% of the total of your earnings. And that also includes your tips if you got any.

Fiverr doesn’t have any flexible rules about the cuts if you are a new seller or an old seller. Whatever your selling level is, it doesn’t really matter for Fiverr. The fixed percentage of your total earnings will be deducted each time you complete an order on Fiverr.

Let’s take an example to understand it completely. One of your gigs was selling for $5 and you got an order on that. You completed the order and now only $4 will be credited into your Fiverr account.

Though Fiverr doesn’t allow this less amount to be withdrawn from the account but let’s leave that for a completely separate article and focus on if does Fiverr take a cut?

This example applies to your tips like you got a $25 worth of order and a $5 tip from the client. But the total amount you will get is $24 after cutting 20% of the money.

Fiverr is a world-famous company open to everyone without investing a single penny to get orders. But as you may know, this kind of company is run by selling shares. Hence, the company has to generate revenue for its shareholders and that’s why they charge you for their service as a platform fee.

So, if you were thinking why does Fiverr take a cut? then this is also one of the reasons behind this.

The amount of the Fiverr fee is different for clients and sellers on the platform.

Free to use

Well, many times when I see people asking does Fiverr take a cut? then they forget the good side that Fiverr is completely free to use for both buyers and sellers. The account creation takes only a few minutes and it is simple and easy.

But once you successfully create your account and order a service, Fiverr takes a 5.5% cut from the total order amount from the buyers. And when the sellers receive an order, they (sellers) also have to pay the total 20% fee to Fiverr as a Fiverr service fee.

But think about you had nothing and did not invest a single penny on the platform while creating your account. And now you are earning a handsome amount from this platform.

That means the service charges that Fiverr cuts from your account are nothing for you looking at the service benefits. So, if on one side we talk about does Fiverr take a cut? then on the other side, we should also see the benefits that we get in return.

Does Fiverr take a cut from your total earnings or per-order earnings?

Taking service fees is Fiverr’s official business model through which it makes money.

Buyers go to Fiverr, place an order and add the order amount to the escrow or the pipeline. The seller receives an order from the buyer, completes it, and gets paid.

But when the buyer adds money in the pipeline, Fiverr asks to pay the service charges as well. And when a seller completes the order and gets paid, Fiverr deducts service charges right away.

That’s completely a transaction-based business model in which they charge you for your secure payments and surety of the payments and that’s it. And that‘s how you get to know how much Fiverr takes from sellers in 2022.

A good thing about Fiverr’s cut from your earnings is that it doesn’t discriminate between the new sellers and the pro-sellers. Whatever the level of your account is and doesn’t matter how many orders you have completed. It will always deduct the same 20% fee from sellers.

Does Fiverr Take a Cut of Tips? What is the total cut?

As I explained that Fiverr takes a 20% cut from sellers’ earnings. But you may think that this percentage is not much and it’s fine to pay this little money. But let’s take the above example to a bigger level, for example up to $1000. Now, what do you think Fiverr’s cut will be from this much money?

Let me do that for you, it becomes $200 that you have to pay to Fiverr out of $1000. It means if you earn a thousand dollars, you still get only 800 dollars.

After getting those 800 dollars in your account, you may need to pay the transaction fees to withdraw the amount from the Fiverr account to the bank account. You can also withdraw to your PayPal, Payoneer, and other digital wallets that Fiverr support.

But depending upon the wallet, your withdrawal fees may vary. I think now you won’t need to ask this question “does Fiverr take a cut of tips?”

Service charges from tips

Yes, Fiverr takes service charges from your entire earnings. That means your tips are not entirely yours, in fact, it’s for Fiverr itself too.

The rate of cutting down your money from your tips is also the same as you pay a Fiverr fee for each order. That means you have to pay the same 20% to Fiverr from the tips too because you used their service to earn that tip.

There’s good news about it, guess what it is. Fiverr never raised its percentage share from your earnings since it was launched.

Fiverr made so many updates to its algorithm, payment methods, and service system for buyers and sellers both. But they have never raised their share of the percentage and they do not plan on increasing it in the near future.

So, whatever you earn from Fiverr as a seller, just calculate the 20% and keep it aside from your plans for Fiverr.

Does Fiverr charge a fee first and then pay you the rest of the money?

Yes, Fiverr charges sellers for an order that has been marked completed by the buyer. If the seller had to revise the delivery for some reason and it took a bit longer to complete the order, it will not be charged again.

Therefore, right from the point where the buyer tells Fiverr that “Seller has delivered what he/she asked for” Fiverr knows that whenever you receive your money, they have to cut their 20%.

What if the client does not accept the work?

So, if a client doesn’t like the work that is delivered by a seller or doesn’t want to work with that seller anymore then the seller will not have to worry about the Fiverr service fee.

Also, Fiverr knows how hard sellers work on projects and do their best to complete the projects on time. Therefore, if a client doesn’t respond to the seller after a seller delivers the project; Fiverr will automatically release the order amount from the pipeline to the seller.

It’s because Fiverr has a valid reason that the buyer may be busy or not active on their account. And that is the reason why it is 100% secure because Fiverr takes the total order amount including the service charges from the client in advance. That means you are not in the wrong hands for sure.

But as a seller, you must know that if you deliver the wrong project or incomplete project file and the client doesn’t respond. The client is still valuable to Fiverr and therefore, the client has the option to raise their issue in Fiverr’s help center.

They can claim that even if they were inactive at their account and Fiverr paid the seller for the project. But if this project is fake or incomplete and then Fiverr may ask you to compensate them. In that case, your money can be vulnerable because Fiverr may return their money to them without even asking you. That clears the question “why does Fiverr take so long to pay?”

But don’t worry; you have got a complete chance to put your response on the desk. Fiverr knows that its economy runs on both sellers and buyers. Therefore, they have to be neutral and always save their assets which are sometimes the seller and sometimes the buyer.

Why do I have to pay a 20% fee to Fiverr?

It’s a known fact that Fiverr is a big company and it has its shares distributed among its shareholders. They know that their company must earn money to become a sustainable and profitable business.

Hence, Fiverr takes a 20% share of their service from the sellers’ total earnings. But that ratio is not the same for both buyers and sellers. Because buyers only have to pay the 5.5% of the total order amount while sellers even work hard but still they have to pay a larger chunk.

Is there a way to not pay Fiverr that 20% or 5.5%?

Unfortunately no, you cannot be out of the service charges rules because Fiverr is a big company.

This company lets a lot of people from different parts of the world earn their bread and butter. And to not make it stop ever, Fiverr management has to maintain it every year. That costs a lot of money.

And if you do not pay them their share, they will not be able to maintain the service. If the service is not maintained, it cannot survive in this commercial world.

So, you have to pay that 20% in order to keep earning more and more of that 100% for a lifetime.

Because it is unimaginable that nobody pays the Fiverr service charges and hopes to earn from the same service. Be careful about the Fiverr policies for avoiding their service charges.

Because no matter how old and big your account is on Fiverr, if they caught you trying to avoid their service charges by any means, they will disable your Fiverr account.

You will not be able to get your account back until you provide any satisfactory proof of your innocence. Till then, you will not be able to earn a single penny from your account.

What are other charges besides Fiverr service charges?

Fiverr has everything preset for both, buyers and sellers. That’s why you don’t have to worry about anything but still, there’s something that you should know.

As a seller when you withdraw your money via bank transfer or wire transfer, then Fiverr charges for those transactions too. But it’s not because Fiverr wants to charge you for that.

Actually, the companies have to follow the tax guidelines, and therefore, Fiverr on its own deducts some of your money from the total amount. That way, Fiverr pays their taxes as well as other taxes on your behalf clearing confusion about how much does Fiverr pay?

This money deduction rule applies to both the sellers and the buyers but the transaction fees may vary depending upon where you live.

Let me do a breakdown of the withdrawal fees that you have to pay as a seller.

• If you withdraw money to your PayPal account, you do not need to pay a single penny.
• For direct deposits in the US only, the service charges are $1 per transaction. No matter how big is the transaction.
• For local bank transfers in any part of the world, the service charges are $3 per transfer.
• Fiver revenue card – now this service is by Fiverr itself for your ease in case you need your money urgently. Therefore, they have fixed $1 for a transaction within working days. But if you want your money within 2 hours, then the fees will be $3 per transaction.

This transaction fee model is only for transactions to and from Fiverr, if your bank supports such transfers but charges any fee, it is up to the bank. Fiverr has no concern in that case.

What are the other income sources of Fiverr?

Fiverr has a big belly in the matter of money even if it doesn’t seem to be that big to you. Therefore, Fiverr has made other sources of income within their service which are by far very useful services. So, let’s take a look at how Fiverr earns from other sources.

Promoting Gigs

Fiverr has a paid gig promotion service in its module. In this service, you make your gig and ask Fiverr to promote it and they ask for money using their service. Money is decided by bidding on an Ad spot for your gig.

Once you successfully book a spot for your gigs, you pay Fiverr for promoting your gigs and they charge you per click on your gig.

This goes both ways, you spend a little money on the spot and promote your gig. But you earn a lot of business with that too which means the service is not bad at all.

AND.CO

AND.CO is another Fiverr subsidiary affiliate company that is now known as google workspace. This service charges a monthly subscription from its users and offers them various services.

Those services include time tracking, streamlined administrative tasks, payment management, making contracts, and so much more. This is a great service for freelancers who often have to face disputes or have a big business on this platform.

They can do all these things in a safe and secure way for larger projects.

Learn From Fiverr

Fiverr has a separate section of short courses in which the world’s top and leading businessmen sell their courses. You can visit that section any time and buy any course you like.

The sellers will receive the payment from Fiverr after paying a minimal amount of service charges. Most of the short courses in this section are very cheap and they usually start at $24 almost.

These courses mainly target Fiverr’s sellers and then the overall sellers who want to learn a new skill or do something with their current business. Hence, learning a new skill is always beneficial in one way or the other.

Funding

Funding has been one of the major factors in making Fiverr what it is today. Fiverr raised $111 million until now.

The company still doesn’t mind being funded if there is any potential investor.

Is Fiverr worth it? Besides its service charges

Yes, Fiverr is a good option for those freelancers who are new to freelancing and do not have any experience prior to that. Also, the individual sellers can ensure their payments only if they have something trustworthy as a middle channel.

If you look at the service charges, you think that it overcharges its users but think about having nothing and then having at least 80% of the total amount. I think now you understand my point.

Well, if we go into the deep side of the business then sometimes your services require other tools outside of Fiverr. Or you have to physically serve your clients and if that’s the case, then Fiverr is not for you.

It’s because Fiverr only lets you do business with the services that you can offer online without meeting with your clients anywhere outside Fiverr.

So, now you know does Fiverr take a cut from your earnings or not.

If you also want to earn money by selling your services on Fiverr but haven’t joined Fiverr yet, this guide can help you with how to join Fiverr as a freelancer.

Conclusion

Fiverr is overall a great service for service sellers because they can earn a lot of money without any investment. But this question “does Fiverr take a cut?” will still remain fresh as the new sellers join Fiverr.

Therefore, as per the current policies of Fiverr, I have tried my best to answer such kinds of questions in detail. But if you still have any questions regarding the charging of Fiverr, you can ask in the comment section below.

I hope you liked this article, if you did please share it with others. Also, make sure to visit this website regularly for new updates about freelancing platforms.

FAQ

How much Fiverr charge from buyer?

Yes, Fiverr charges 5.5% of the total order amount from the buyers.