The Fiverr.com website offers users an attractive proposition: to buy (or sell) any service for $5. There is no need to negotiate pricing and there is no need to worry about hiring suitable personnel for long-term work. If you are a small business that needs to relieve some short-term work, such as graphic design or editing, you can find someone who wants to work with a few clicks.
Mihir Kaufman, co-founder and CEO of Fiverr, said that when he and his co-founder launched the site in early 2010, simplicity was his initial goal. “Today, everyone has the talent that other people need (we think), ‘How cool would it be to put these talented people together?’ “Although other freelance markets are more arduous, negotiating prices and coming back to define the scope of work Kaufman said at Fiverr that the initial focus was on a single price point ($5) that excluded this complexity from the equation. “The purchase time should not exceed 20 to 30 seconds,” he said.
Kauffman said that sticky prices are also good for sellers because it prevents them from being forced to compete with cheaper products. “They can do five to ten performances per hour and they have high income,” he said.
Today, Fiver rapidly expands, adding 190 performance venues and 4,000 new services every day, covering 120 categories. Now, more than half of the transaction amount is between $10 and $100, thanks to the growth of “premium” performances. Premium sellers can increase their services and can now sell for up to $500. “This is how they achieve financial independence in their own way,” said Kaufman.
This is how Morissa Schwartz, a college student at Drew University in Woodbridge, NJ, began paying for her college expenses. She initially joined the site to provide her with singing services, but later began to notice the need for editorial assistance. As a writer, she thought it would be easy to edit in her free time, so she began to provide her proofreading service on Fiverr.
When she is not busy studying, Schwarz now edits 2,500 words, each for 5 dollars. She charges an additional fee for formatting, editing comments and 24 hour turnaround time. She said: “The self-publishing is so great that for these authors it is a perfect way to edit their books in a more cost-effective way. I also gained this experience.” Schwartz estimated that she She spends about three to four hours a day editing, and she has earned $7,500 in her efforts over the past year.
Mark Mason, a semi-retired publicist in Chicago, has achieved similar success with Fiver providing business-related services, including writing automated email responses and marketing materials. “Fiverr is a brand new to me, introducing new markets for buyers,” he said. He quickly started earning 150 to 300 dollars a day by working for about three to four hours. This income enabled him to buy new homes in Indiana.
“It suits my semi-retirement life and keeps my skills sharp,” Mason said. He also likes to interact with the Fiverr community, which helps him to get the highest rated seller status.
Mason advised novice sellers to begin testing the market with a $5 concert and then slowly increase the steam – and raise their prices – because they established a reputation on the site. Sellers starting the sale must place 30 days on the site and successfully complete 10 orders before they can “upgrade” to the first level, which allows them to begin providing performances for more than $5. (The seller joins the site for free, and they keep $4 for every $5 sold. If the buyer is not satisfied with their purchase, they can visit Fiver’s “solution center” to get help with the seller’s solution, or reject it. Work without paying.)
In addition to serving as CEO, Kaufman also develops the site as a user in sales and purchases. “I bought a lot of presents, like the graphic design of my family photo production. People turned the photo into a stunning illustration,” he said. As a seller, he expressed willingness to listen to people’s elevator sounds and provide feedback.
But when he used to provide business services, he did not complete it on his own behalf. If he does, he may charge more than $5.