Don't Do It Yourself
How Does Fiverr Work?

How Does Fiverr Work?

Fiverr is an online platform that allows buyers and sellers to connect so they can buy and sell digital services. It gets its name from the starting price of services which is $5.

What is Fiverr?

Fiverr is an online marketplace for freelance services with low-cost providers from all over the world.

The idea behind their brand is to streamline the process of hiring or getting hired as a freelancer. The online marketplace cuts out the middleman of hiring, firing and HR departments. Smaller businesses can get things done on a more case by case basis and freelancers have the freedom of selling their services at any time to any company.

Fiverr lets clients pay in advance for Gigs, which constitute any digital service ranging from WordPress design, logo design, writing services, transcriptions, NFT artwork, Twitch graphics, to even voiceover work. Although all services were priced at $5 when the site initially launched, freelancers can now set their price to whatever they choose and can offer package deals, or Gig Packages.

What Does Fiverr Mean?

Fiverr’s meaning refers to a U.S. $5 bill. For example, someone may say, “The breakfast here will cost you a Fiverr.” This is where the marketplace got its name, but you may wonder why the website calls itself Fiverr. The simple answer is that the platform originally marked itself as a place where you can hire a freelancer for as low as $5. Now bear in mind that there are very few services that you can get on Fiverr for $5.

The average transaction price for service on Fiverr is about $25. However, how much you may pay will depend on several factors. For instance, the skill level of the freelancer you hire will factor into how much you will pay. Additionally, the complexity of the service will play a role in the ultimate price for the service.

Overall, Fiverr’s meaning insinuates that the platform offers you freelance services at an affordable price. Whether you just need one job done or you would like someone on an ongoing basis, Fiverr may be the best marketplace for you.

How Does Fiverr Work?

Fiverr works by letting buyers pay in advance for “gigs” which are any type of freelance service, ranging from web design, to social media marketing, to copywriting.  When Fiverr first launched, all gigs were originally priced at $5, but now freelance sellers can decide to charge more or offer packages of services.  Orders are typically completed within a day or two, but the delivery time is set by the seller and can take longer if the seller has a queue of orders.  When your order is successfully completed, the seller will receive 80% of the total order value. For example, a $5 gig means the freelancer will receive $4 for a completed order.

There are two ways to view the site, as a freelancer or as a buyer. First, I’m going to explain the terms they use on their site and then I’ll break down how the process works for the buyer and the seller.

There are two ways to view the site, as a freelancer or as a buyer. First, I’m going to explain the terms they use on their site and then I’ll break down how the process works for the buyer and the seller.

Read more in our detailed Fiverr review.

Fiverr Terms

  • Gig: A service offered on Fiverr’s website. Gig example: “I will write you an excellent press release for $5”
  • Seller: A registered user (freelancer) who offers Gigs
  • Buyer: A registered user who purchases Gigs (When a Gig is purchased, it’s called an order)
  • Post a Request: A buyers request for services (Gigs) if they have a specific need


Fiverr for Buyers

Fiverr For Buyers (How Buying a Gig Works)

As a buyer, you can browse through the category pages, or use the search tool to find a Gig you are looking to purchase. Once you hit search on something like a translator for example, you will find that a list of translators pop up.

Sorting through all the options can be tricky, which is why it's important to read through the descriptions of each service offered and take a look at their portfolio. You can also message the seller with any questions and to see if your specific project would be something that they can do.

Once you are ready to make a purchase, there are several ways to pay. Fiverr recommends that you go through their site in order to make sure that the payment is secure. All purchases do have a processing fee of $1 on purchases of $20 and below and 5% on gigs over $20.

Once you purchase a gig, the order goes to the seller. The money will only go to the seller once the order is completed. Before the order is completed you have an option to review and potentially request changes depending on the nature of the gig before the full payment goes through.

Fiverr for Sellers

Fiverr For Sellers (How to Sell on Fiverr):

Sellers need to set up their profiles and create custom gigs to sell on the site. As a seller, you set your price and can choose to offer add ons to your gigs to bump up the cost.

Once a buyer decides to buy your order their money is taken from their account and put on hold for you until you complete the order. Sellers keep 80% of what they earn on each gig they successfully sell and deliver.

The more gigs you sell, the easier it will be to build your seller rating on the site. This means, you will potentially be able to charge more for the services you offer.

As a seller, you have the potential to make around $1,000 – $2,000 a month depending on how well you market yourself and how many gigs you get. For many sellers, taking advantage of a skillset already built in the workplace and offering on this site is a great way to get even more experience and earn extra income.

Fiverr even created a platform to help its sellers called provides time tracking, expenses, and proposal software for sellers (read our review).

Is Fiverr For You?

For freelancers, Fiverr requires a lot of work and marketing, just as any business does. The payoff is working your own hours from home and the potential to earn more than you could working another office job. Success stories for freelancers on the site include people like Charmaine Pocek who have earned tens of thousands of dollars a month.

For employers or buyers, you have the opportunity to save as much as 30% in payroll costs by bypassing HR and paying for full-time staff. Fiverr also gives you the opportunity to work with all different kinds of people so you can find who works best for you without having to hire and fire people along the way.

Types of Fiverr Gigs