Don't Do It Yourself
How Does Fiverr Work?

How Does Fiverr Work? (2024 Guide for Buyers and Sellers)

Navigating the freelance world can be daunting if you're new to the scene.

Thankfully we’ve hired, fired, and been a regular Fiverr user for years so have plenty of tips and guidance for you to succeed.

But what's the buzz about this platform? And how can it benefit business owners?

Let's dive in and demystify Fiverr, revealing its potential for first-time entrepreneurs in the freelance world.

Advertising Disclosure

What Is Fiverr?

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 Is Fiverr Business?

What is Fiverr Business

Fiverr Business is a tailor-made freelance platform for larger teams and businesses that provides a more convenient experience.

This plan comes with collaboration and management tools that let businesses work with freelancers more efficiently.

Fiverr Business freelancers will be prioritized on listing pages over non-eligible gigs. This increases the chances of freelancers working with higher-end businesses—with ongoing needs and larger budgets.

It’s essentially a solution for larger businesses to collaborate with multiple top-notch freelancers all in the same place.

What Does Fiverr Mean?

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?

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.

Is Fiverr Legit?

Is Fiverr Legit

Fiverr itself is legit and safe to use as a freelancer or a client. Your payments through the platform are protected and they keep your personal information safe.

While they do require some verification for freelancers, unfortunately, sometimes scammers can work their way into the system.

To avoid Fiverr scams, check out our post on what Fiverr scams are and how to avoid them.

Fiverr Terms – What is a Fiverr Gig?

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 (How Buying a Gig Works)

Fiverr for Buyers

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.

How to Choose the Right Freelancer on Fiverr

How to Choose Right Freelancer on Fiverr

Finding the right freelancer on Fiverr is essential to your success on the site.

Here are a few tips to find the right freelancer on Fiverr:

  1. Read Reviews and Testimonials: Do your research when choosing your freelancer! Look for positive reviews and ratings from previous clients to gauge how successful your relationship could be.
  2. Check Their Portfolio: Many of the freelancers on Fiverr will have examples of their work available for you to view. This gives you insight on the freelancer’s previous work.
  3. Communicate Before Placing an Order: Communication is key. Make sure you discuss terms and expectations before placing an order with a freelancer.
  4. Consider Level of Experience: If you have a smaller budget, look for a newer, less-experienced freelancer who is likely to be more flexible on pay as they build their resumé. On the other hand, if you need high-quality work, make sure to find a freelancer with a lot of experience.
  5. Set Clear Expectations: Create a contract and agreements ahead of time and solidify these with your freelancer before working with them.

Fiverr For Sellers (How to Sell on Fiverr):

Fiverr for Sellers

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).

5 Quick Tips for Creating a Successful Gig on Fiverr

Tips for Creating Successful Gig

  1. Craft a Compelling Title: Make the title of your gig/service offered clear, concise, and descriptive. Use relevant keywords that potential clients might use when searching for services similar to yours. 
  2. Use High-Quality Images and Videos: Using high-resolution images that showcase your best work and an intro video can significantly increase your gig's visibility and conversion rate.
  3. Write a Detailed Description: Outline clearly what clients can expect from your services.
  4. Offer Competitive Pricing and Packages: Research similar gigs on Fiverr to get an idea of the market rate for your services and price accordingly. Also, consider offering tiered packages of your services.
  5. Communicate Often and Stay Active: Respond quickly to inquiries and maintain open lines of communication with clients to build successful relationships.

How Does Fiverr Pay Freelancers?

How Does Fiverr Pay Freelancers

When buyers place an order for a project through Fiverr, they pay Fiverr directly at the time of purchase.

Once the job is completed, Fiverr will assign 80% of what they were paid to the freelancer’s account.

The funds remain under a “pending” status for a 14-day clearing period. The two-week hold is for financial processing and so that Fiverr can ensure its buyer satisfaction guarantee.

When the funds are marked as “cleared,” they are available for withdrawal.

Fiverr offers different options for withdrawing funds depending on the country the seller resides in. These are:

  • PayPal
  • Fiverr Revenue Card
  • Bank Transfer
  • Direct deposit (US only)

Withdrawing Money on Fiverr

Withdrawing Money from Fiverr

To withdraw money on Fiverr, first, log into your account.

Go to the selling menu, then select earnings.

Click Available for Withdrawal balance which will show you your different options to withdraw funds: PayPal, Fiverr Revenue Card, Bank Transfer, and Direct Deposit.

Select what currency you want to withdraw funds in; your options are Australian Dollar (A$), British Pound (£), Canadian Dollar (C$), Euro (€), USD ($), and Israeli Shekel (₪).

The Withdraw Balance button can be accessed on the Earnings page. In the Available Funds tab, you will see the amount available for you to withdraw and the Withdraw Balance button below it.

When you click Withdraw balance, it will take you to the Withdraw Balance page, where you can select to get paid via your preferred method.

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

Frequently Asked Questions

Is it Fiverr, Fivver, or Fiver?

It is Fiverr, with one “v” and two “r”s.

Can you actually make money on Fiverr?

Yes, you can indeed make money on Fiverr. The platform provides a marketplace where you can sell your skills and services, with many individuals and businesses earning significant income there.

Is it a good idea to use Fiverr?

Using Fiverr can be a good idea if you're a freelancer looking to reach a global clientele, or if you're a business seeking affordable services. Its ease of use and wide range of services make it a popular choice.

How much does it cost to sell on Fiverr?

As for selling, Fiverr doesn't charge upfront fees. However, it does take a 20% commission from each transaction you make. This means if you sell a service for $100, you'll receive $80, and Fiverr will take $20.