How Much Does Fiverr Take From Sellers & Buyers? [ Explainer]

Do you plan to start selling your services on Fiverr and do you want to know how much Fiverr takes from sellers? I was a seller on Fiverr offering SEO services so I understand how service fees work on Fiverr.

You will learn how much Fiverr takes from sellers. I will answer key questions relating to the fees Fiverr charges you for being a gig seller on their platform and take a look at fees Fiverr takes from buyers. 

How much does Fiverr take from seller?

Fiverr takes 20% of every sale you make on their platform as a seller. Whether it is a $5 or $1000 gig, the 20% commission is charged. This fee is for allowing you sale your services on their platform.

It is also from it that promotes its services to woo clients to come and buy gigs from you. This amount is the same for top-rated sellers, Fiverr Pro sellers, and a freelancer that just signed up to sell their services. 

Is a 20% fee for every sale high for a seller?

 Fiverr sellers often complain that a 20% commission is higher compared to other freelancing platforms like Upwork, Freelancer, etc.

This may be true when you take a look at the commission Upwork takes from sellers on this platform.

Upwork charges the following:

• $0-$500 in earnings from a client: 20% service fee applied to earnings
• $500.01-$10,000 in earnings from a client: 10% service fee
• $10,000.01 or more in earnings from a client: 5% service fee

When you take a look at different types of commission Upwork charges, it shows that the higher you earn from the services you offer to clients, the lower the percentage of service fee Upwork takes.

This is not the same with Fiverr where 20% commission cuts across all earnings. 

Comparing the seller fee on Fiverr to Upwork shows that Upwork wants to encourage freelancers to bid for more jobs and earn more money knowing that the service fee for higher earnings is low.

Check out this article where I compared Fiverr to Upwork.

Is the 20% service fee a reason to consider Upwork instead of Fiverr?

Yes, if you think the 20% fee for every sale on Fiverr is high. However, bear in mind that Fiverr is beginner-friendly when it comes to landing gigs. The competition on Upwork is fierce and you may spend time bidding for jobs without getting one.

Also, clients who hire freelancers on Upwork often set skills freelancers must be certified to have acquired before they can bid for their jobs. This might not favor you as a beginner freelancer who has no experience as it may take time to land such gigs that pay high. This is where Fiverr sounds better.

As a new freelancer on Fiverr, you can land gigs easily but you have set your prices very low and work harder to deliver high-quality services so that clients can give positive reviews and ratings about your service. 

Benefits of being a  Fiverr seller that outweighs the 20% cut for every sale

Although you may complain about the 20% cut Fiverr takes from every sale you make, there are benefits you enjoy being a seller on Fiverr. 

We will take a look at them below.

1. Create up to 10 active gigs

As a seller on Fiverr, you can list up to 10 active gigs. This means the main services you will offer on Fiverr. 

For instance, as a freelance content writer, you can list proofreading, editor, and content optimization gigs since these services contribute to having high-quality content that will rank on search engines like Google.

2. Add 4 extra services per gig

Apart from your active gigs, you can offer extra service per gig. For example, as a freelance that offers SEO content services, you can add keyword research, content audit, and topic clustering as extra gigs.

Since they are related to your active gig, clients who buy gig your active gigs can also buy them. It is a way of upselling them on Fiverr.

3. Create custom offers up to $20,000

Custom offers you the opportunity to make more money on Fiverr as a seller. It allows you to tailor your service based on what the client wants and charge up to $20,000. Large businesses with huge budgets and are looking for the best services go for this. 

For instance, you can create a custom service that includes content audit on a blog, keyword research with a focus on topic clustering, SEO content writing, and publishing it on the website of the client. 

4. Withdraw your earnings after 14 days 

As a new seller on Fiverr, you may want to withdraw your earnings at least to boost your morale to continue to work hard to land new clients on Fiverr. Fiverr allows you to withdraw your earnings after 14 days.

No need to wait till after 30 days like some other freelancing platforms do. There are different methods with which you can withdraw your earnings on Fiverr. Some of them are PayPal,  Payoneer, Direct Deposit,  Bank Deposit, and Fiverr Revenue Card which are powered by Payoneer.

That you can’t receive money through PayPal in your country won’t stop you from signing up to sell your services on Fiverr. Payoneer, Bank Transfer, and Deposit are alternatives. 

5. Clients come to you to buy gigs

You don’t have to hunt for clients who will buy your gig on Fiverr. Those clients will search for the services they want and your account if favored by the algorithm will show on search results. All you have to do is set up your profile the right way and optimize it. Then ensure that you deliver high-quality services to clients so that the positive reviews and ratings which the algorithm considers will keep coming.

Sellers with high positive ratings and reviews will always come up when clients search for services they offer. This is unlike Upwork where a client posts a job and you have to submit proposals to be considered.

The  Invite A Talent feature on Upwork doesn’t favor new freelancers with little or no ratings and reviews. When a client posts a job, Upwork automatically suggests top-rated freelancers with high ratings and positive reviews who can do the job for the clients to invite them to submit a proposal. 

How much does Fiverr take from buyers?

It may surprise you to know that clients who hire freelancers on Fiverr also pay fees. Fiverr calls it administrative fees. It is 5.5% of the total amount any time you buy a gig. For gigs under $50, an additional $2 and other fees may apply. These fees are added at a time when a buyer reviews the amount they are expected to pay for the gig they ordered. 

One would wonder why Fiverr charges buyers since they also make money from them.

Here is my answer:

Fiverr has done the heavy lifting for you by establishing a platform where you can buy services anytime. Keep in mind that it interferes to resolve any dispute between you as a buyer and a seller. Employees who resolve such disputes also get paid. 

FAQs on fees Fiverr charge sellers per sale 

Before I conclude let’s look at some important questions you ask about the fee Fiverr takes from sellers and buyers.

How much does it cost to be on Fiverr?

Creating an account either as a buyer(client) or as a seller ( freelancer) is free. Fiverr only charges you when you make a sale as a freelancer and when you buy a gig as a client.

How much does Fiverr take from $5?

Going by the 20% which Fiverr takes from every sale you make on their platform, it takes $1 from $5. Leaving you with $4.

Why does Fiverr take 20%?

Fiverr takes 20% of every sale you make which it describes as a service fee for you(seller) using their platform to sell your services. It spends huge amounts of money to maintain its platform, run advertisements to promote its services, and attract clients who come to buy gigs from you. 

How does Fiverr earn money?

Fiverr makes money from the 20% it takes from every sale a seller makes and the 5.5% it charges buyers for the total amount of gigs they purchased. It also makes money from other services like Fiverr Business, Fiverr Course, and its shares when they increase in value. 

Final thought on Fiverr seller & buyer fees 

As a freelancer who wants to sell gigs on Fiverr, I trust this guide has informed you about the amount you will pay as a service fee anytime you make a sale.

The same goes for a buyer who buys a gig on Fiverr. It is up to you to decide if these fees are favorable to you. If I am to suggest, the benefits of selling or buying services on Fiverr outweigh the fees you pay. A new seller on Fiverr can easily get orders. Also, a buyer can buy gigs at a cheaper rate.