what is fiverr featured

What Is Fiverr: Everything You Need to Know About the Platform

If you’re not familiar with the Fiverr platform yet, we recommend checking it now. 

Initially, it started as a straightforward online marketplace for freelancers.

Customers looking for freelance services could hire workers for a range of projects, while service providers could showcase their offerings for a fee of their choosing.

In recent years, amid the pandemic, many people have turned to freelancing to boost their income. For instance, in the U.S. alone, over 2 million workers joined the freelancing market in 2020.

Consequently, online freelance platforms like Fiverr have experienced significant growth.

By the end of 2021, Fiverr became incredibly popular. But what’s the fuss all about?

Let’s dive deep into everything this online platform provides for both freelancers and clients, and also uncover any hidden downsides of this service.

Let’s get started.


What Fiverr.com Is

The idea behind Fiverr is to streamline the process of clients hiring freelancers. “It’s like eBay for creative people,” the company’s website says.

The company was founded in 2010 in Israel.

The entrepreneurs wanted to create a marketplace where they could offer any “micro-gig” (small service). The platform was based on offering temporary projects and assumed a lower-than-usual cost.  

The name Fiverr stands for “five” US dollars. Services, which are called “gigs” on Fiverr, were offered on the platform for just five dollars.

Specifically, in the early days, many services were offered for five dollars. Today, the average transaction costs are higher.

Clients on Fiverr can find: 

  • Website building
  • SEO services
  • Copywriting
  • WordPress
  • Music & video production etc.

Typically, freelancers, which Fiverr calls “vendors,” offer “work packages” for a one-time fee rather than an hourly rate.

A company looking for a freelancer can apply a filter by setting a minimum and maximum budget and selecting a language, freelancer location, and time to complete the work.  

However, freelancers can often gradually increase their prices depending on the popularity of their services. As a result, they can expand their offerings to small businesses.


Works with Fiverr

There are two ways to use the platform:

  • As a seller/freelancer
  • As a buyer/client

Services – “gigs” – fall into different categories. 

There are currently nine categories on Fiverr:

  • Graphics and design
  • Digital Marketing
  • Text & Translation
  • Video & Animation
  • Music & Audio
  • Programming & Technology
  • Photography
  • Business Services
  • Artificial Intelligence Services

There are also over 30 subcategories within the above services sections. 

The prices are listed in advance. However, it is important to note that Fiverr charges a 5% commission to buyers and 20% to sellers.

Once the customer pays for the finished work, these percentage fees are applied and then Fiverr pays the seller.


An Overview of Customer Features on Fiverr

Are you looking for a freelancer for your project, what can Fiverr offer you? Let’s take a look.

The Process of Looking for Freelancer

Finding the best freelancer for your needs on Fiverr is an impossible task. As a result, Fiverr is overflowing with sellers vying for your attention. 

Although Fiverr gives you the option to filter sellers by budget, delivery time, etc.

what is fiverr

Performer Levels

Levels are based on the number of orders a freelancer has completed on time and the customer ratings they have received. For example:

  • Level 1: Completed at least ten orders on time with a minimum rating of 4.7.
  • Level 2: Completed at least 50 orders on time, with a minimum rating of 4.7.
  • Highly Rated Seller: Fulfilled at least 100 orders on time with a minimum rating of 4.7.

This makes it easy to build a list of potential service providers.

But are all the performers trustworthy?

Choosing a Freelancer

The buyer can view the seller’s profiles and credentials on the platform.  

Freelancers who already have positive reviews and testimonials rank higher in the Fiverr page rankings.  

However, despite your search, you may find a few freelancers offering the skills you need but not the services you are looking for.  

Project Delivery

Payment is made to Fiverr if you approve the work ordered. If there is a problem, Fiverr is not responsible and advises you to contact the seller directly to try and resolve the issue. 

If you wish to cancel your order for any reason, Fiverr advises you and the seller to try to resolve any difficulties amicably using the Problem Resolution Center. 

The seller then has 48 hours to accept or reject your requests. If they go unanswered, your order will automatically be canceled.


Fiverr Security 

Buyers’ and sellers’ transactions are protected on Fiverr as long as they use the platform to conduct their business. 

However, Fiverr cannot protect users who enter into contracts or conduct transactions outside of their terms of service. Using the platform, data is stored encrypted and protected.  

Customers should read seller and buyer contracts carefully to know what to expect.


The Payment System on Fiverr

Mobile orders can be paid by PayPal or credit card.

Important to know: “Buyers pay Fiverr in advance. When the order is successfully delivered and fulfilled, sellers receive 80% of the total order value.” 

There is also a 5.5% service fee.

Specifically, Fiverr states that the service fee is added at the time of purchase and charged with each payment.

If a customer makes a basic purchase during checkout, adds service, and then leaves the merchant a tip, the service fee will be charged on each payment.


Two Sides of Using Fiverr for Your Business

While Fiverr has its advantages, it’s important to explore both the positive and negative aspects to make an informed decision. 

We will help you understand if it is the right choice for your needs.

Positive Aspects: Advantages of Fiverr

what is fiverr

1. Diverse Talent Pool

Fiverr boasts a large pool of freelancers from all over the world, covering numerous industries and skills.

You are likely to find someone on Fiverr who can meet your requirements. You can find freelancers on the platform who have the exact skills you need and have experience in a specific industry.

It can be a bit like finding a needle in a haystack – that is, it can take some time. But you know that if you look long enough, you will eventually find what you need.

2. Affordable Services

The main appeal of Fiverr is its accessibility. This makes it an attractive option for startups and people on a budget.

Fiverr’s pricing structure is flexible, allowing you to customize the amount of your order. You can pay a freelancer a fixed amount or on a per-hour basis.  

3. User-Friendly Interface

Fiverr’s interface is easy to navigate, making it convenient for clients.

Fiverr allows clients to quickly browse through freelancers’ portfolios, read about their skills and experience, and quickly contact the freelancer of their choice. 

On the other hand, some argue that Fiverr’s interface is too easy to use.

This argument is that because it’s so easy to find and contact freelancers on Fiverr, clients are often inundated with job requests. This makes it difficult to find the right freelancer to do the job.

This often leads to frustration on the part of the client and even to them looking for the right freelancer elsewhere.

4. Buyer Protection

Fiverr has implemented a system that pays freelancers only after the client is satisfied with the work performed. This buyer protection feature ensures that you don’t lose money on unsatisfactory services. 

Fiverr’s buyer protection also includes a refund policy that allows clients to receive a full or partial refund if the quality of the work performed does not meet their expectations.  

5. Fast Turnaround Time

Many Fiverr freelancers offer fast turnaround times. This is especially useful for projects that require urgent completion. 

Fiverr freelancers are aware that clients often have tight deadlines for projects and are eager to get the job done quickly.

By offering fast turnaround times, freelancers can give clients the confidence that their projects will be completed on time. 

The Downside: Disadvantages of Using Fiverr

what is fiverr

1. Quality Issues

Talented freelancers are working on Fiverr, but there are also inexperienced and unprofessional individuals. This can lead to unstable quality of services.

And finding a reliable freelancer can take a lot of time and effort. 

Since there are so many freelancers on Fiverr, it can be difficult to find a freelancer who meets your specific needs and is experienced enough to deliver quality work.

There is no guarantee that the freelancer you hire is a professional. You may pay for lower-quality services than you expected. 

2. Limited Customization

Fiverr operates on an order-based model. That is, freelancers offer predefined services at fixed prices. 

Customization options may be limited, making it difficult to tailor services to specific project requirements. In addition, clients may not find a freelancer who offers exactly the services they need. 

In some cases, freelancers may not be able to provide the level of customization desired by the client, which can be a source of frustration.

For example, a client may want to hire a graphic designer to design a customized logo. However, a freelancer may be limited in the options they can offer.

This can lead to a mismatch between the client’s expectations and the results. 

3. Communication Barriers

Language and communication barriers between freelancers from different countries can sometimes lead to misunderstandings or delays in project delivery.

Communication barriers include cultural, time, and language differences.

This can lead to misunderstandings about project scope, timelines, and deliverables.

For example, if the client is in the United States and the freelancer is in India, there may be a gap in expectations due to cultural differences between the two countries. 

In addition, the freelancer may not understand the client’s accent or have difficulty understanding the client’s instructions due to a language barrier.

This can lead to delays in project delivery and poor quality of work. But then again, not all countries often have this reputation.

4. Additional Costs

Although Fiverr services may seem inexpensive, additional costs such as service fees or expedited delivery can quickly exceed your initial budget. 

Fiverr charges payment processing fees. 

For example, a job that costs $30 may cost $40 after taking into account service fees, shipping, and additional services.

5. Intellectual Property Issues

Property rights and intellectual property can become problematic because Fiverr’s terms of service grant the platform and its users certain rights to the work they do.

This means that while Fiverr users may own the work they create, they do not necessarily own the rights to it. 

The work can be used for other purposes, such as advertising or selling without the user’s permission. So don’t get too attached to your work, because it may not be yours for long!

6. Specific Job Requests

Ethical issues include the fact that some Fiverr clients may ask for free samples or “terms of reference” before awarding a project. This practice undermines and exploits the value of creative work. 

Expecting creatives to work for free devalues the time and effort spent on producing a high-quality project. 

Due to the platform’s global reach and different legal standards, plagiarism, and copyright infringement may occur. This leads to potential legal complications. 

Copyright infringement occurs when someone uses someone else’s work without permission or attribution, and plagiarism is when someone uses someone else’s ideas or words without proper attribution.

They can be difficult to detect and can lead to costly lawsuits if not handled properly.

It’s like going into someone’s home and taking their belongings without permission. Both actions are wrong and can lead to legal consequences if not handled properly.

what is fiverr

8. Risk of Fraud

Despite Fiverr’s efforts to monitor user activity, fraudulent freelancers can still get caught. This creates a risk for unsuspecting clients. 

For example, some freelancers may charge for a service but never deliver the work they promised. That’s why you must do your due diligence when choosing a freelancer.

Clients should read reviews and look for signs of a reliable freelancer before committing to any project. 

Additionally, Fiverr offers a guarantee for certain services that provide clients with a refund if the freelancer fails to deliver satisfactory results.

So, to quickly summarize all the pros and cons of using Fiverr to buy freelance services, you can see the following:

Pros 

  • There is a wide range of services and freelancers to choose from;
  • Cheap services are available;
  • There is a search function and sophisticated filtering to help you narrow down your choices;
  • You can get protection against malpractice and shoddy work.

Cons 

  • The visibility parameters are not fully understood;
  • You are charged a commission for buying services;
  • Fiverr offers services from over 150 countries, so there may be issues with language barriers;
  • Truly talented performers can be overlooked;
  • Messages come with long delays and sometimes not at all;
  • The site and mobile application work disgustingly;
  • You can’t always guarantee high-quality work;
  • Long confirmation period for withdrawal.

Final Quality in Outsourcing Through Fiverr  

Over the past few years, the experience of many Fiverr users is as follows: at the beginning of cooperation with a seller, the quality of work performance is excellent, but gradually it decreases and one day it becomes terrible.

Consequently, the client has to look for a new seller.

This has happened dozens of times. It certainly leads to frustration and waste.

The salesperson may feel that the customer is already relying on him/her and the quality goes down drastically.

Another seller may claim that the text is carefully proofread, although the client finds 3 mistakes if not more.


What Is Fiverr: Сonclusion

Overall, Fiverr isn’t critically terrible. Opinions about it vary from “negative” to “okay.”

These platforms often result in one-time orders with limited communication or accountability. Many sellers prioritize making a quick profit, sometimes neglecting other important aspects.

You should consider the likelihood of encountering unreliable and unqualified sellers.

Having said all that, there are other ways to work successfully with outsourcing

If you’re looking for an effective sourcing option for professionals, you should look to long-term and proven solutions. 

HireUA clients have already had plenty of positive experiences hiring Ukrainian talent and growing their businesses.

Now is the time to grab the right opportunities and get the best for your goals!

About The Author

Anastasia Marinich

Anastasia was born in Odesa and realized at an early age that her work should be creative & enjoyable.

While studying marketing in her hometown, she moved to Germany and continued her education at 2 universities at the same time.As the saying goes "Choose a job to your heart's content and you won't have to work a day of your life!"

Anastasia obtained a degree in Art and has a knack for it. She takes the same approach to writing. Each text is like a picture with a special message and mood. Everyone will find something useful for themselves!

Today Anastasia lives and works in Germany. She travels a lot, practices Ashtanga yoga, learns new things, and continues her creative journey with the HireUA team!
© 2020-2023 Hire UA LLC. All Rights Reserved.