Can anyone explain fiverr paypal model?

46 replies
I haven't really used fiverr, but I'm curious how their payment model with paypal works.

I'm assuming it goes something like this when making a sale?

fivver.com -> payment made to fiverr paypal account -> fiverr paypal account pays your paypal account

I understand fiverr takes a cut of each transaction and paypal also gets a cut, so how much is actually left after this?

Not starting a fiverr clone. Thanks in advance.
#explain #fiverr #model #paypal
  • Profile picture of the author oneplusone
    I've bought a bit of stuff off Fiverr but have never been a seller.

    I believe the seller gets $4 and $1 goes to Fiverr.
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    • Profile picture of the author seowrite
      Originally Posted by oneplusone View Post

      I've bought a bit of stuff off Fiverr but have never been a seller.

      I believe the seller gets $4 and $1 goes to Fiverr.
      You're right, man. I get paid $4 for a $5 gig. We can see it on transaction record.
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  • Profile picture of the author Nexo
    Hi!
    This is my first post so i want to say hi at the same time!

    And about fiverr.com, yes they take $1 and you have a netprofit of $4.
    But that´s when your money still are in fiverrs hand. Regular paypal fee will eat up another piece of the cake.

    Fiverr don´t charge you when you are making a transaction from paypal to fiverr.
    They only charge the seller.

    i have been a seller for a while and dare not to think about how much money fiverr makes in fees every day. But i have to admit, it´s a smart business model.
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    • Profile picture of the author jessicaartis
      Can I cashout from fiverr to my unverified paypal accoutn
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  • Profile picture of the author spectrefax
    Fiverr obviously has to give a cut to paypal (I believe transactions under $12 are .05c + 5%), are they taking this fee from the seller or from their $1 cut?

    Are you then reliant on fiverr issuing a payment to your account or is it made in real time?

    Also, welcome to the forums.
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  • Profile picture of the author real estate
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    • After the buyer approves the completed work (or the gig auto-closes) there's a 14 day waiting period before the seller can access the money.

      Quoting from Fiverr's terms of service: "PayPal's transfer fees amount to 2% of the total withdrawal sum, and up to a maximum of $1. Withdrawing $50 or more in one go will save you a little cash."

      So basically a seller nets $3.92. Unless there's physical product shipped, in which case the seller is allowed to charge a "reasonable" shipping fee over and above $5.

      fLufF
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      • Profile picture of the author spectrefax
        Originally Posted by fluffythewondercat View Post

        After the buyer approves the completed work (or the gig auto-closes) there's a 14 day waiting period before the seller can access the money.

        Quoting from Fiverr's terms of service: "PayPal's transfer fees amount to 2% of the total withdrawal sum, and up to a maximum of $1. Withdrawing $50 or more in one go will save you a little cash."

        So basically a seller nets $3.92. Unless there's physical product shipped, in which case the seller is allowed to charge a "reasonable" shipping fee over and above $5.

        fLufF
        --
        Thanks, but i'm still confused. So each seller has their own paypal account integrated with the fiverr system? Meaning they will have a fiverr account balance that they withdrawal from to their personal paypal account?
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        • Originally Posted by spectrefax View Post

          Thanks, but i'm still confused. So each seller has their own paypal account integrated with the fiverr system? Meaning they will have a fiverr account balance that they withdrawal from to their personal paypal account?
          Yes. Once funds clear, you may initiate the withdrawal on Fiverr. It doesn't happen automatically.

          fLufF
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          • Profile picture of the author spectrefax
            Originally Posted by fluffythewondercat View Post

            Yes. Once funds clear, you may initiate the withdrawal on Fiverr. It doesn't happen automatically.

            fLufF
            --
            Ok, just so I'm clear. Each seller has an independent money account hosted on fiverr, separate from their paypal money account?

            How does fiverr manage this? Is this stand alone affiliate software?

            I understand the fee's, I'm trying to understand how they are processing these micro transactions and managing accounts.
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            • Originally Posted by spectrefax View Post

              Ok, just so I'm clear. Each seller has an independent money account hosted on fiverr, separate from their paypal money account?

              How does fiverr manage this? Is this stand alone affiliate software?

              I understand the fee's, I'm trying to understand how they are processing these micro transactions and managing accounts.
              If you're asking if they use a specific affiliate software package, I don't know but I imagine they rolled their own. There's no shortage of programmers in Israel able to write code to access PayPal's API.

              Also, keep in mind Fiverr is still in beta. I expect we'll see some changes over the coming year.

              fLufF
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            • Profile picture of the author ladywriter
              Originally Posted by spectrefax View Post

              Ok, just so I'm clear. Each seller has an independent money account hosted on fiverr, separate from their paypal money account?
              Yes.

              Hope this helps:

              When you sign up to Fiverr they ask you for your Paypal address. I don't think you can change that address once you enter one.

              Say you do one gig. After the gig is marked "completed", in your "Revenues" tab on Fiverr, you will see a "$4" in the "upcoming payments" section.

              After 14 days (there's a handy countdown of days when you view "Revenues"), that $4 will switch to the "Available" section.

              At that point there is a "Withdraw Your Earnings" button. Click that, and Fiverr tells you that you have to confirm the withdrawal (through the email you use for Fiverr, which is not necessarily your paypal address). You go to your email, click the confirm link, and you get a message which says something like "payment has been initiated".

              (You do not have to "withdraw your earnings"--at this point you can also use the money in your Fiverr account to pay for other gigs if you want.)

              At that point it's all been through Fiverr (and Fiverr's paypal account, presumably--from what I understand, the buyer pays $5 for the gig when they order it, and that $5 sits with Fiverr until the buyer approves the delivered gig).

              Fiverr deposits $4 to your Paypal account.

              About 5 minutes later you get an email from Paypal saying you've gotten a payment. When you go to your Paypal account you see that Paypal has taken their cut and you have $3.92 (or whatever) in your Paypal account.


              General ranting:

              Waiting for the gig to be marked "available" can be irritating because Fiverr does not start their countdown on delivery but when they consider the gig "completed". For all of my gigs so far, when I deliver the gig I get a message that says "this gig will be marked completed in 3 days". So, from delivery to money in my paypal account I'm waiting 17 days *at least*--god forbid I only sell 1 gig today and 5 gigs two days from now, I'll be waiting 20 days to withdraw a whole 28 bucks (minus paypal fees).

              That wait may seem like nothing to those of you who are affiliates and wait a month or two for your money but it drives me nuts. But it is money and it does work. Just make sure you're selling something that can be done quickly and cheaply.
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              • Profile picture of the author Mar
                The amount of money paypal must benefit from also includes the interest on revenues sitting waiting to be paid to you. For me, fiverr isn't so much about the revenue on gigs, rather it's about making it easier for me to find content for a couple of blogs and that can drive visitors to my own site as well as to the jewelry sites, etc, which I review.

                Mar

                ps - I do appreciate the extra dollars as well - I just don't expect fiverr gigs to make me rich by themselves.
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                • Originally Posted by Mar View Post

                  The amount of money paypal must benefit from also includes the interest on revenues sitting waiting to be paid to you.
                  I don't know for certain but I feel sure that buyer payments to Fiverr through PayPal do NOT sit in Fiverr's PayPal account, waiting weeks for the seller to get paid. That would be foolish, when those aggregated funds could be invested much more profitably short-term. Most large-volume PayPal customers have their accounts swept each night to transfer funds out.

                  The investment of incoming cash is most likely the reason for the 14 day clearing period. It can't be to hold it for refunds, since a buyer can't get a refund once the gig is put into Completed status.

                  fLufF
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            • Profile picture of the author spectrefax
              Originally Posted by spectrefax View Post

              I understand the fee's, I'm trying to understand how they are processing these micro transactions and managing accounts.
              Still interested in this if anyone has any ideas?
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          • Profile picture of the author zentaihome
            It seems most of people using Paypal for payment? anybody using other ones? Paypal links with ebay, dominate the business
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    • Profile picture of the author Zeus66
      Originally Posted by real estate View Post

      I presume that the objective at fiverr is not to make money on front end sales but to establish longer term and more profitable relationships by using it as a lead generator?
      Bingo! Give this poster a cookie. LOL

      If you're gonna be a seller at Fiverr, treat it as a loss leader. Offer something really amazing for $5 so you get a lot of takers. Then work that list you build from the buyers. Plan this out ahead of time. What can you lure them in with for a measly fiver, then upsell them something related that you can charge a real price for.
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      • Profile picture of the author Gaz Cooper
        Originally Posted by Zeus66 View Post

        Bingo! Give this poster a cookie. LOL

        If you're gonna be a seller at Fiverr, treat it as a loss leader. Offer something really amazing for $5 so you get a lot of takers. Then work that list you build from the buyers. Plan this out ahead of time. What can you lure them in with for a measly fiver, then upsell them something related that you can charge a real price for.
        Theory is good Zeus but Fiverrs TOS is you cannot contact or do business outside of fiverr so your stuck with offering $5 gigs no upsells or backend higher products

        Gaz Cooper
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        • Profile picture of the author Zeus66
          Originally Posted by GazCooperOnline View Post

          Theory is good Zeus but Fiverrs TOS is you cannot contact or do business outside of fiverr so your stuck with offering $5 gigs no upsells or backend higher products

          Gaz Cooper
          Yes, I know. But you're paying Fiverr their share per gig sale. I would have no qualms breaking their TOS on this score. Fiverr is the facilitator but you're the service provider. Some TOSes are made to be broken. Just sayin'.
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  • Gujju Boy, that's incorrect. There is no longer a 10-gig minimum for withdrawals. You can initiate a transfer to your PayPal account any time after funds clear the 14 day waiting period.

    fLufF
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  • Profile picture of the author riya@seogirl
    Originally Posted by Gujju Boy View Post


    paypal withdrawal after completing 10 gig orders successfully.
    That was when it all started now seller can withdraw even after a single sale. As a seller you will get $3.92per gig sale. That is 21.6% fees!!! A bit too much for my liking.
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  • Profile picture of the author raawow
    You can only pay with paypal because then they can easiliy give the money back to the buyer if the seller is scamming etc. Paypal is always best if you are buying because you can get your money back in any circumstances.
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  • Profile picture of the author riya@seogirl
    Originally Posted by spectrefax View Post

    Ok, just so I'm clear. Each seller has an independent money account hosted on fiverr, separate from their paypal money account?

    How does fiverr manage this? Is this stand alone affiliate software?

    I understand the fee's, I'm trying to understand how they are processing these micro transactions and managing accounts.
    Fiverr keeps account for each seller but that is essentially a number only, showing how much you can claim. While all the money still sits in the paypal. When seller do claim, money gets transferred to sellers paypal account from fiverr account.
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  • Profile picture of the author seobro
    True, you get $4 out of the five. However, they have now increased the hold time. This is to prevent fraud they say...
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  • Profile picture of the author wrongnumber
    Originally Posted by spectrefax View Post

    I haven't really used fiverr, but I'm curious how their payment model with paypal works.

    I'm assuming it goes something like this when making a sale?

    fivver.com -> payment made to fiverr paypal account -> fiverr paypal account pays your paypal account

    I understand fiverr takes a cut of each transaction and paypal also gets a cut, so how much is actually left after this?

    Not starting a fiverr clone. Thanks in advance.
    I have made more than 300 sales on fiver (in total)... and its as easy as... Fiverr works as an escrow agent... the have understanding with paypal...
    For Buyers:
    they just pay 5$ via paypal and fiverr keeps the money...
    For Sellers:
    they get 4$ in their fiverr account after 15 days of completion of order... then the money keeps on accumulating... whenever you want to withdraw... the paypal charges a flat2% (maximum upto 1$)... this means payment transferred over 50$ +1$ fees... from fiverr to paypal comes without any paypal fees... so if i transfer 100$ i get a flat 99$ in my account...
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    • Profile picture of the author spectrefax
      Originally Posted by wrongnumber View Post

      I have made more than 300 sales on fiver (in total)... and its as easy as... Fiverr works as an escrow agent... the have understanding with paypal...
      For Buyers:
      they just pay 5$ via paypal and fiverr keeps the money...
      For Sellers:
      they get 4$ in their fiverr account after 15 days of completion of order... then the money keeps on accumulating... whenever you want to withdraw... the paypal charges a flat2% (maximum upto 1$)... this means payment transferred over 50$ +1$ fees... from fiverr to paypal comes without any paypal fees... so if i transfer 100$ i get a flat 99$ in my account...
      Yes, but i'm curious as to what type of software solution they use to automate this process.

      I understand the fee's, where the funds are distributed, who gets what. But I want to know *how*
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      • Profile picture of the author wrongnumber
        Originally Posted by spectrefax View Post

        Yes, but i'm curious as to what type of software solution they use to automate this process.

        I understand the fee's, where the funds are distributed, who gets what. But I want to know *how*
        Have you heard about the PayPal APIs?

        they are using them, it becomes simple when only a payment of 5$ is to be made, the paypal on receiving a successful sum, returns a token to the receiver at the fiverr end, it then initiates a payment lifecycle, the order is created and the work starts...

        as to when the payments are to be remitted, it becomes even more simpler, their sender requests the amount and the email to the API, and rest is handled by the PayPal system...

        Well for the same purpose, did we invent the APIs, its in use everywhere... if you are interested in reading some source codes of these systems, just download an open source ecommerce solution, like Open-Cart, and study the PayPal Module, you will find that the token returned on payment is of two types, one with a value (TID) and other with null, if successful then the TID is returned to the Software, so that we can display the Page "Thanx for the payment, your order is now confirmed"... else we can say "sorry you failed to make a payment, please try again"... i hope this clarifies...

        Cheers!
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      • Profile picture of the author ChrisCastle
        Originally Posted by spectrefax View Post

        Yes, but i'm curious as to what type of software solution they use to automate this process.

        I understand the fee's, where the funds are distributed, who gets what. But I want to know *how*
        There is an internal monetary system in the script, it auto takes care of commission and fees, the only manual part is when someone requests a payout. We operate a Paid To Post forum with a similar internal system as a plugin to VB.

        Everytime someone posts their cash total goes up based on the size of their post, when they reach $9 then can request cashout, everything is automatic up to that point.

        Hope that helps
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  • Profile picture of the author SEOguymike
    You simply pay and they allow the transaction to be completed before taking your money. If you want a refund it might happen if you open up with paypal. But it's only 5 dollars.
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  • Profile picture of the author tritrain
    Fiverr gets 20% commission.
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  • Profile picture of the author website12
    Banned
    yeah 20% one dollar and then paypal charges more and then in the like 3.95$
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  • Profile picture of the author Oliver Williams
    With a fiverr script you have to manually take care of this aspect not sure what fiverr does.
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  • Profile picture of the author rahildeziner
    Banned
    seller get $3.62 or a bit less or more.. well it depends every time...
    i mean if you withdraw a big amount ( your earning of many gigs ) at once the you will have will $3.90 or more each.. else if u withdraw your every gig revenue then you will get $3.62 or a bit more or less but more than $3 and less than $4
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    • Profile picture of the author Lucas Becker
      If you are buying on Fiverr, than it just goes straight to your Paypal account, you pay up front and if you are not satisfied with the job, than you can ask for a full refund, in which case you get full $5 back and the seller isn't harmed at all.

      If you are selling on Fiverr, then you only get $4 from every sale you generate, $1 goes to Fiverr.

      In addition, there is a small Paypal fee when you are withdrawing your funds from Fiverr, I think it's like 2% of the sum you are withdrawing, but there is an upper limit to this fee to Paypal, which is $1.

      So, if you are withdrawing $12 (after making three sales), you pay about 25 cents to Paypal.

      However, if you are withdrawing $300, then you only pay $1, which is the maximum fee.

      There is no limit as to how much you can withdraw at a time, you can do $4 or $4000, it doesn't matter.
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      • Profile picture of the author dotgirish
        Originally Posted by Lucas Becker View Post

        If you are buying on Fiverr, than it just goes straight to your Paypal account, you pay up front and if you are not satisfied with the job, than you can ask for a full refund, in which case you get full $5 back and the seller isn't harmed at all.

        If you are selling on Fiverr, then you only get $4 from every sale you generate, $1 goes to Fiverr.

        In addition, there is a small Paypal fee when you are withdrawing your funds from Fiverr, I think it's like 2% of the sum you are withdrawing, but there is an upper limit to this fee to Paypal, which is $1.

        So, if you are withdrawing $12 (after making three sales), you pay about 25 cents to Paypal.

        However, if you are withdrawing $300, then you only pay $1, which is the maximum fee.

        There is no limit as to how much you can withdraw at a time, you can do $4 or $4000, it doesn't matter.
        To add more advantages,
        In fiverr you are getting laser targeted buyers who is ready to buy stuff which interests them. No need of sales talk etc. So if you start selling 4-5 gigs atleast a day, its a good business to continue
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        • Profile picture of the author Rally Writer
          Just registered fiverr 5 minutes ago and I just wondering if there are any issues on activating the DamnQuickPay button?
          Is it safe or is there any other alternative for the buyer to make payment?

          Confused newB
          Shahril

          Thanks all
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          • Profile picture of the author aaabyss
            No one has got it right yet LOL!

            In regard to this mysterious $1.00 payment for a fiverr 'withdrawal', This 'fee' is correct HOWEVER, what is NOT correct is the way it is presented by fiverr which is actually DECEPTIVE.

            fiverr is using paypal's MASS pay system that you can clearly read about HERE at paypal.
            Don't spend any more time writing checks. Send a Mass Payment instead.

            Convenient
            • Send payments to many recipients at once.
            • Send payments to recipients in different countries and currencies.
            • Faster and easier than writing checks.
            • Recipients get paid quickly online.
            • Track payments easily.
            Cost effective
            • Pay fees only when you send a payment.
            • Free for recipients.
            • Competitive pricing for domestic and international payments.
            • Currency conversion available for currencies supported by PayPal.
            Flexible
            Here are some of the many ways you can use Mass Payment:
            • Affiliate commissions.
            • Customer rebates.
            • Pay-to-surf rewards.
            • Employee benefits.
            • Survey incentives.
            fiverr is DECEIVING their customers by not FULLY DISCLOSING the mysterious 'fee' by making it sound as though paypal is charging the recipient (fiverr seller) when in FACT paypal is charging fiverr the fee and screwing the recipient! (fiverr seller)

            So fiverr is in effect saying:
            It's not enough that we are SCREWING our valued sellers by charging them an EXORBITANT 20% on their sales we are going to screw them once AGAIN even further and charge them $1.00 of every withdrawal also! (and blame it on paypal)
            By the laws of the United States (FTC) this is very clearly DECEPTIVE TRADE PRACTICE and against the law!

            Since they hide behind a 'private' domain proxy, I can only assume they do not reside in the USA and feel immune to fair trade practices.

            Perhaps someone should point it out to the FTC anyway?

            and there you have it sports fans .....

            HTH

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  • Profile picture of the author rahildeziner
    Banned
    a seller gets $3.6 or more but less than $4 for each gig. But if you wait untill you get the money of 5-10 gigs then u can get a lot more than $3.6 on each. means...they charge some fee of 0.some $ so they will charge on each withdraw now its upto you that withdraw each gig revenue and pay them fee every time OR pay one fee and withdraw all at once
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  • Profile picture of the author equanto
    I think fiver being make a commision for them, a bit unfair
    Fiverr's revenue comes from commissions, but taking 20% right off the bat is unfair. Fourer would be a more accurate name for the website. After Fiverr has taken a piece of your earnings, PayPal takes one as well. If you were to cash out every time you received $4, you would be charged 2%, or $0.08 by PayPal. Bear in mind you can only withdraw after a "safety clearance period of 14 days," so if you're in need of quick cash this shouldn't be your go-to method.
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    • Profile picture of the author aaabyss
      Originally Posted by equanto View Post

      I think fiver being make a commision for them, a bit unfair
      Fiverr’s revenue comes from commissions, but taking 20% right off the bat is unfair. Fourer would be a more accurate name for the website. After Fiverr has taken a piece of your earnings, PayPal takes one as well. If you were to cash out every time you received $4, you would be charged 2%, or $0.08 by PayPal. Bear in mind you can only withdraw after a “safety clearance period of 14 days,” so if you’re in need of quick cash this shouldn’t be your go-to method.
      No read what I just wrote above - it is fiverr NOT paypal that is taking the 2%!

      Paypal does NOT charge me anything to receive money from fiverr but fiverr REMOVES a dollar before they send it!

      i.e. If I withdraw $100.00 from fiverr they only SEND $99.00!

      Paypal only charges a fee if it is collected from a credit card on the senders end which is not the case with fiverr.

      .
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  • Profile picture of the author marco005
    Hi,

    fiverr will transfer my money as seller from my fiverr paypal account to my personal paypal account after 14 days?

    Also I must wait as seller 15 days before I the money in my bank account???
    Or can I transfer every day from my fiverr paypal to may paypal account??

    When I must wait 14 days to get my money from fiverr account to may account, ist this system not against the law?



    best wishes
    marco005
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  • Profile picture of the author TheDollar
    They take 20% of net profit off you. Once the order is completed, you wait 2 days then begins the 2 week countdown until you can cash it out. It's pretty simple and easy.
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  • Profile picture of the author Davidconstable
    In the fiverr every gigs rate is $5, here after submitting work, the freelancer get $4 & $1 is the commission of Fiverr. That's all for the time being.
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  • Profile picture of the author Global Content Services
    Banned
    When a buyer buys your gig, the buyer pays $5 and fiverr earns $1 from that payment. That being said, you only get $4. When you withdraw that money to your paypal account, you will get the exact $4 amount in your paypal account because fiverr will cover the paypal fee associated with the transaction.
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  • Profile picture of the author think more
    HI,I'm working on fiverr more than 2 yrs.From my experience they take $1 as commission.That means from 5 dollars you will get $4.they will took $1.and there is no any other hidden fee.and you can get the payout only after 14 days.
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  • Hi, I am active on Fiverr since last 3 months and sold some gigs. What I want to add here, though I saw this thread now after 5 months, but this is what I experienced.

    When my available balance went to 150 $, I hit the withdraw button and got 149 $ and just today my balance was 123 $ but I got 122 $ credit to my Paypal account. I don't know it works but this is what it is. But hope this helps.
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