Fiverr.. I am losing $1 a gig - where did I go wrong

15 replies
Hi folks

As a newbie I thought I would give fiverr a go it looks simple enough. Anyhow I posted a gig and it is proving to be very popular. The only trouble is fiverr takes $1 from me and then I go and outsource the work to someone else for $5's so I am down $1 on every gig I sell.

So where did I go wrong?

Well no where really I set it up like that on purpose. Yes that's right, you see when I deliver the gig they get a great pdf file offering a couple of services related to the gig they buy.

1 in 3 of my buyers so far have opted for the $9 a month service. This service is also outsourced out but in this case I make a profit of $4 a month from each buyer.

I have even made a few sales on a service for a $19 offer which gives me $9 profit each time

So I hope this gives you few ideas and gets your creative juices flowing. Do some research and you'll find it fairly easy to set up.

One piece of advice though. Before you outsource any work on gigs you sell try the person you are outsourcing to yourself first to make sure they deliver then build a relationship with them.

All you need to do then is to pass your orders over and then send them to your buyers with some really good offers.

Jay
#fiverr #gig #losing #wrong
  • Profile picture of the author Landro
    Glad the "loss-leader" business model is working out for you. You are correct to advise the formation of a stable outsourcing relationship. Good luck to you!
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    • You can't get a better price on the outsourcing than $5? I'd certainly try. As they say in the antique business, "You make your money when you buy."

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

        You can't get a better price on the outsourcing than $5? I'd certainly try. As they say in the antique business, "You make your money when you buy."

        fLufF
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        I am happy with the people I outsource to and I know I can trust them. I don't mind losing a dollar as the monthly sales I am getting more than covers this and then some. Also at the same time I am building a list of genuine buyers.

        It's just a case of getting the price point right for the monthly buyers and I am looking to test this service at $12 a month for a little more profit.

        Jay
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  • Profile picture of the author sierraskatherine
    Can't understand why it happened.
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    • Your upsells are optional. You can't always count on them converting.

      I know you think this is a clever business model, but what you're really doing is paying $1 per lead.

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

        Your upsells are optional. You can't always count on them converting.

        I know you think this is a clever business model, but what you're really doing is paying $1 per lead.

        fLufF
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        I understand what you are saying but I feel more comfortable with this method than trying to run an adwords campaign. I also realise that I will probably have to run the gigs for a lot longer to get a true reading of the conversions.

        The point is at the moment it is working and getting me monthly subscribers that is showing an healthy profit. I can keep on testing conversions with different offers and also mailing new offers to my subscribers.

        Any time I feel its not going right it is easy to suspend the gig. As long as I show an overall profit I cannot understand why anyone would knock this method

        Jay
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        • Yes, that's a good point.

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        • Profile picture of the author sbucciarel
          Banned
          Originally Posted by J Cohen View Post

          The point is at the moment it is working and getting me monthly subscribers that is showing an healthy profit. I can keep on testing conversions with different offers and also mailing new offers to my subscribers.

          Jay
          It's working and that's what counts. If it weren't, you wouldn't be doing it, right? Great idea and glad it's working out for you.
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          • Profile picture of the author adamj2
            Cool. I am also currently thinking of ways to earn on the backend with fiverr gigs so good to hear you are doing well with it yourself.

            I literally just put up a fiverr gig the other day for writing articles, not for money as such, but for hopefully impressing 1 or 2 quality clients who might be testing the water on there. Have already had some really cool gigs from potential future clients so shall see how that pans out.

            Now thinking I might dust off my SEO tools and offer some linkbuilding services on there. Maybe with a free link building strategy eBook as a bonus with the service, along with affiliate links to the tools I use.
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            • Profile picture of the author Jenny Pats
              $1 per lead isn't bad for a very targeted buyer. I think this is definitely worth a try, thanks for posting the idea.
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              • Profile picture of the author Sparhawke
                Originally Posted by Jenny Pats View Post

                $1 per lead isn't bad for a very targeted buyer. I think this is definitely worth a try, thanks for posting the idea.
                If he has a 33% conversion (one in three actually subscribing) then he is paying $3 per lead isn't he?

                Still, it is very cheap considering that he is getting more than that back each month
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                “Thinking is easy, Acting is difficult
                And to put one's thoughts into action is the most difficult thing in the world ~ Goethe”
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            • Profile picture of the author J Cohen
              Originally Posted by adamj2 View Post

              Now thinking I might dust off my SEO tools and offer some linkbuilding services on there. Maybe with a free link building strategy eBook as a bonus with the service, along with affiliate links to the tools I use.
              Thats what works, the offers I send are SEO services and the conversions are good.


              Jay
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  • Profile picture of the author buzznebo
    Yeah you can only go with the "loss leader" model for a while. After a few times, you should look for a more sustainable business model.
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  • Profile picture of the author lassekn
    Fiverr take one USD from you gig
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  • Profile picture of the author iDesigners
    That's the way they make a living, but you can expect better clients who would be happy to offer you tips or additional gigs for the work!
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