When I first discovered Fiverr it seemed like a pretty cool concept. There is all this shit you can get somebody to do for just $5. It also seems like a nice way to make some quick cash for a Single Dude Traveler, at least I thought so until I figured out how much of a cut they take. A whopping 20% to be exact, or at least that’s what they want you to believe. The reality is they are taking 30% on all $5 gigs and they’re doing it in a super dishonest fashion. As a seller, when you sell a standard $5 gig, this is what you see:
Exactly what you would expect right? You sold something for $5, they took a $1 (20%) cut and you earned $4. It doesn’t feel like much because it’s just a buck but then again you were slaving away to do something, no matter how trivial, for only $5 in the first place. But guess what the buyer sees; something completely different, he paid $5.50. They snuck in a little bullshit $0.50 processing fee. Oh well it’s only 50 cents right who cares? Well on a $5 transaction it’s 10% more which means they’re taking 30% in total which is a staggering 50% more than they led you to believe on a percentage basis. Sure it’s only $0.50 per transaction but across tens of thousands or hundreds of thousands of transactions that’s big money.
Well you might think, “Maybe they’re just trying to recoup some fees that PayPal is fucking them out of. I mean PayPal is one of the scammiest, shittiest, most price gougingest companies out there right? I say no, if they want to get ripped off on payment processing that’s their choice, it comes out of their end. There are plenty of processors out there with reasonable, transparent processing fees like Stripe, for example. Even the assholes at Amazon Seller Central only take a 15% sales commission and they handle the payment processing out of their end. But anyway, nope, these motherfuckers take that extra 10% on regular credit card transactions too!
The best part though is that they also take this 10% “processing fee” on Bitcoin payments. You know that cool cryptocurrency that’s supposed to P2P and cut out all the fees from the middlemen and the banks? The same one you can process through companies like BitPay for almost nothing even if you want fiat currency and not Bitcoins deposited into your bank account. What a bunch of fucking slimy scumbags!
So in summation, Fiverr probably pays between 0.5%-3.0% on payment processing fees, they take 20% of your money openly and then with a little slight of hand they fuck buyers and sellers out of an additional 10%. Nice little scam they’ve got going there don’t they? Looks like this is just standard business practice over at Fiverr, I also found this post indicating they’re fucking people out of 20% on shipping fees too! What a racket!
On larger jobs these pieces of shit cut their hidden fees to 5% it turns out, but in the grand scheme of things this is still a huge amount of money. Here are some screens shots of a $125.00 “gig”. These lower than low parasites siphoned another $6.25 out of the deal on top of the $25 they were already getting and they hide it from the seller. I have yet to see anyway the seller can even find out about this unless they do some transactions both as a buyer and a seller or if they read an article like this. How dare these fucks take an additional 5% or 10% “processing fee” when they’re already taking 20% just for running this glorified Craig’s list of people selling services. Nobody but the most incompetent business man running a very low volume business pays anywhere near 5% in payment processing fees and even if they did there is plenty of room to cover it from the 20% they’re already openly taking from you. These motherfuckers need to be exposed! If you think this is bad wait until you learn how fraudulent Fiverr’s seller ratings are.