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Fiverr: Should You Use it to Make Money & Freelance? #BSI 40

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Today we’re going to take a look at Fiverr. I’m going to share with you my thoughts on making money with Fiverr if you’re an entrepreneur or you’re trying to make some money on the side.

You will find out if you’re trying to get some clients with Fiverr is it the right fit. Or if you’re even trying to freelance on the side to get a few more gigs.

Getting started with Fiverr

Fiverr is a sales website that business people go out and looking for things they need.

Let’s say I’m interested in logo design, but I don’t want to pay full price. Often other designers will post their services. I will design a business logo for you, and it might be $25-$80. It used to be for $5.

That’s how they got the name with Fiverr. But now there are much more expensive gigs, especially if you’re a higher rated seller.

When you do it this way, it’s, and it’s very transactional. There’s no relationship. Think about it like speed dating.

If you’re trying to build a business, it all comes down to relationships. This is not healthy for growing your business. This is good if you’re trying to execute and make some money real quick on the side. But unfortunately, it just doesn’t cut it if you’re trying to build a business.

This is why it’s not for building a business

If you have that one-time transaction here and there and there’s a whole bunch of transactions. 

But initially what if you had five customers or three customers. Every single one of those customers could be coming back, or you could be upselling them. 

Sometimes people do come back because they remember the gigs and they understand that sometimes they have to go and buy through Fiverr.

Fiverr wants you to keep them in the ecosystem. The way they make money is they take 20% off this cut. If something’s let’s say $5, Fiverr takes $1 cut. They also take a $2 if you’re the buyer – so they’re making a whole bunch of money on both ends of the transaction.

In this case, the advantage for you as a buyer is you get something real quick real cheap.

The downside is if you’re the seller if you’re trying to make money on the side build your business freelance on it is number one you’re competing with a ton of people. It’s become horrendous.

The next thing is you’re competing against weird quality.

For example, here is a logo that was designed. But part of that logo was used. That’s the Evernote logo.

It’s not the same approach that you would get at a professional studio. If you look at a professional studio on a basic package in logo design, you want the original files. Most people don’t understand this.

The reason you want original files is that you can scale them up as large as you wish. You can embed them into things. Here you get 300 dpi files resolution, and that’s fine.

However, the problem is if you need to adjust that file:

  • to tweak the font 
  • to tweak the letters 
  • to tweak maybe the edging or the designs of something 

…you don’t have that original file. Then this becomes useless. You have to redesign your logo, and sometimes that costs even more money. Because now you have to do it twice.

Premium packages

They do have premium packages where you do get stationery and source files. They want to upsell you.

It is more expensive, and now when you get to that point now, you’re starting to pay a little bit more $125-$65.

A standard logo is around $250-$550, maybe even $900 depending on if you’re doing mascots and stuff like that.

The thing is that you can still get something quick if you want with Fiverr and if you’re trying to make money on the side. It’s suitable for a quick transaction.

Going through my example

I’ll show you an example here of what I did. This is something that I bought. Here’s a sample – a little emoji for myself.

It cost me about $10 on the gig and then I’ve had $2 for the transaction cost. If you were doing this exact thing and you could knock it out and making about $8 for you is worth it – then, in that case, you could make a little bit of money on the side.

The thing to remember: When you asked for $10 on Fiverr, you’re only getting $8 plus you got to pay taxes on it. You might be making $6. Maybe even $5 if you’re paying for tools and those kinds of things.

I’ll show you a couple of other things regarding the Fiverr conversation. If you’re trying to get something done or original files here’s a conversation I had with this person.

He said that I couldn’t get the original files unless I pay him more. They want to chat with it on the inbox. With a standard studio, you would get the original files, and they’re not trying to upsell you nickel and dime you.

In this case with Fiverr, that’s typically what you’re going to get. If you’re trying to make money on this as a little tip – give the source files. Do the best you can for the clients because they will come back, especially if you can brand your username to a 2-year company in business. 

Also, include free ebooks, free PDFs that tie into your website in business then they know your website and business. And they can reach back out to you.

It saves you time. Because in this case, when I look at my emoji that was done. All of a sudden, I need changes. If I had the source files, I would change the shirt myself to a blue. And maybe the eye color as well.

But since they didn’t want to give the source file all of a sudden they have more work ahead of time. 

Strategies for building your business

If you’re building a business, low prices don’t always necessarily mean cheap quality. I’ll give you an example here with my gig stats.

I’ve gone ahead and posted things on Fiverr for sale under a hidden profile to do some testing. A couple of years back I’d helped out some of my friends to launch some income on Fiverr. It was no problem. They went in, posted a gig, and within a couple of days, they got some sales.

Nowadays look at the number of results. When you search for a logo design, you have 60,000 results that you’re competing against. All of a sudden you’re competing in a big way. 

In the past, my friends were making anywhere between $500 to $2,500 a month. That’s just a general guideline. You could be making more if you work more gigs and services.

That’s about roughly what they were doing from doing:

  • voiceovers 
  • video testimonials 
  • video editing 

I posted my services on Fiverr.

If you don’t know, I did graphic design for about 15 years. Then I got into investing. I have another channel, and I work a lot with investments, trading stocks and those kinds of things.

This is a second channel for me. My team still goes and creates ebooks PDFs.

By the way, check out five-star link if you’re interested in getting a PDF book designed by us or just a book cover.

I went ahead and posted some things on Fiverr. You can see on my gig stats the gigs were not getting any traffic.

And what happens if they’re not getting traffic?

Then they’re not getting the sales. If they’re not getting the deals, then you Fiverr will send you an email like this.

Are you still interested in doing work?

And that was for like 90 days. I got one of these things every 30 days, and I hit yes I’m still interested for two or three times.

I still didn’t get one sale. Of course, you have to play with it and promote your gigs in that case. 

But why would I do that? What would be the point?

You could do that if you didn’t have your platform if you didn’t have your website. But remember you’re pricing yourself lower on Fiverr to compete against the other Fiverr gigs.

That makes it tough whereas instead creating videos like this, working through my own business, marketing yourself as more professional and giving extra value here is a better way of doing things.

I’ll show you a payment slip right there. This payment slip we got a $250 customer for an ebook that was the same gig that we were offering on Fiverr for $5.

Think about that for a minute. We were offering that gig to design an ebook cover for $5.00 gig.

People pay $250 for and sometimes even more for us to design their ebook covers. We’ll throw different deals here and there, but it just gives you an idea and insight into the world of Fiverr.

Can you make money on Fiverr on the side?

Yes, you can. But you will be making less because of the competition. You will be making less also because Fiverr is taking the transaction commission on it because they’re bringing you, clients.

And you have a lot of clients you have to deal with. There is just non-stop asking you nickel and diming you. That’s the nature of Fiverr. It’s cheap.

If I were to approach Fiverr right now, I would do it a little different. I want to give you a few tips. 

Important tip: Include even more goodies and freebies beyond what you’re giving your clients. If you had a logo design item when you send your files or your final files, include some PDF on how to use it with your logo on the bottom.

And have a website ready to go. This way, it promotes your company image, and people can come back to you. 

That way, when you stop selling on Fiverr, you can still build out some leads. Or maybe have in that PDF eBook click here to get our other book. That’s a way to try and get people off of Fiverr so that way you can build leads and customers. Otherwise, people keep coming back to you on Fiverr.

It’s not bad, you’re still making some money here and there on the side. And that’s not bad, but you don’t want to stick there. The reason is it’s one stream of income.

Build your business – Smart way

If Fiverr goes down you’re done – you’re not making money. Build multiple streams of multiple pillars and multiple levels.

Remember all the great business owners investors and wealthy people they don’t just have one stream of income. They have money from investments, from companies, and different sources.

That’s what you want. 

Final Word

Feel free to start with Fiverr. It’s not a bad place to start and make some money on the side. But look at how can you expand it further.

Use it maybe as a teaching tool for your team. Learn to work with clients, fine-tune your processes, and then go beyond it.