15 {{ upvoteCount | shortNum }}
15 {{ upvoteCount | shortNum }}

Do fiverr hold money for two weeks to accumulate interest?

by dukestravels1972
12 replies
I'm new to selling on fiverr, but it seems to take forever to "clear" a payment. 8 days gone, just looked and it will be available in 8 more days. 16 days seems excessive imo.

The buyer has left positive feedback, its paypal so everything is instant. WTF are they waiting for?
#accumulate #fiverr #hold #interest #money #weeks
  • Profile picture of the author healthseocontent
    They use PayPal, so they may be earning some interest (depending on the type of account they have I believe interest bearing is available on business tiers) but I think part of it is making sure that they can "make payroll" and pay someone to do the admin work/accounts payable.
    Signature

    Do you have a natural health, vegan, etc. related site? I'm ready to write copy, content, and e-books for you!

    {{ DiscussionBoard.errors[5744738].message }}
  • Profile picture of the author ThunderC
    i doubt there is any interest, they do the hold to avoid chargebacks, because in most cases if a charge back wasn't made in 14 days, it probably won't be made.
    {{ DiscussionBoard.errors[5745115].message }}
  • Profile picture of the author Shane N
    I own and operate a very popular micro gig site, similar to fiverr and the answer is "no" -- These sites are not designed to collect interest on the money being held. It is all done via PayPal and you do not earn interest on money in a standard business PayPal account.

    The money is held for that period as a "safety net" for everyone involved, the seller, buyer and the owner of the micro gig site. If a buyer ends up realizing that a gig they bought was not as described, etc. it gives a window of time for resolution, etc. It's almost like the funds are being held in an "escrow" for X amount of time.

    Best,
    Shane
    {{ DiscussionBoard.errors[5745294].message }}
  • Profile picture of the author vivi62
    yes I can see that they would hold the money for some time as an insurance for all parties.
    regards
    vivi62
    Signature
    SECRET INTERNET MARKETING STRATEGYS

    FAST TRAFFIC CREATION SOFTWARE REVIEW
    {{ DiscussionBoard.errors[5745460].message }}
    • Profile picture of the author octobergal
      The money is held for x amount of days as a safety net for all parties involved. That's all. I decided to only hold funds on my site for 7 days instead of the typical 14 days that most sites like this do. But no, the money is not being held to accumulate interest.
      {{ DiscussionBoard.errors[5754622].message }}
      • Profile picture of the author fluffythewondercat
        The hold is imposed by Fiverr, not Paypal, so it is possible that Fiverr could incentivize sellers by reducing the hold time for top performers.

        I can't think of any change that would inspire harder work and more seller self-promotion than reducing the 14-day hold to, say, 7 days for top-rated sellers.

        fLufF
        --
        Signature
        Fiverr is looking for freelance writers for its blog. Details here.
        Love microjobs? Work when you want and get paid in cash the same day!
        {{ DiscussionBoard.errors[5757554].message }}
        • Profile picture of the author iramency
          do you know if in fact level two and three tier sellers on Fiverr get released quicker ? I just recently started using it and i am at level one. I have never worked so hard for $4 in my life. lol
          Signature

          Cindy
          ------------------------
          I am here to learn how to improve some of my blogs including Big Fat Daddy's BBQ and RetroChalet Plastic Dinnerware Site. Using Blogger and I'm still at the 1.0 level so anyone talking to me please break it down for me.

          {{ DiscussionBoard.errors[5847899].message }}
          • Profile picture of the author fluffythewondercat
            No. Currently all sellers are subject to the 14 day wait, as far as I know.

            Shane Natan's explanation that it's a kind of escrow would have made sense when Fiverr first started out. But Fiverr isn't eBay; sellers don't have the ability to sell unlimited numbers of gigs, then skip town without delivering the work.

            I think Fiverr does it so they can manage cash flow. (I've said this before...) With a PayPal business account, funds can be swept out of your account every day. You don't have to carry a balance.

            Let's say 1,000 gigs are marked Completed today. Fiverr now knows it needs to have $3,920 (1000 x $3.92) available 14 days from today, and they can schedule a transfer of that money for that day.

            Even that is probably too simple an analysis, because over time they can see what percentage of sellers typically withdraw funds the day they're available, a week later, or only withdraw once a month or so.

            The guys who own Fiverr run other businesses as well. They know how to manage cash flow.

            fLufF
            --
            Signature
            Fiverr is looking for freelance writers for its blog. Details here.
            Love microjobs? Work when you want and get paid in cash the same day!
            {{ DiscussionBoard.errors[5848113].message }}
  • Profile picture of the author Shane N
    I've said this before, but I'm not sure why people get deterred or hung up on the "14 day" withdrawal period...

    - When you have a "brick and mortar" job, you get paid either weekly or every 14 days
    - Clickbank pays every 7-14 days
    - Most CPA networks pay every 30 days
    - Most affiliate networks have a waiting period between paychecks

    But yet when it comes to fiverr and micro job sites, people tend to not want to wait. If you make $100 a day on fiverr, is it really that terrible that you have to wait 14 days to get your money? It's designed solely to ensure that all parties involved are safe and no one loses money in the end.

    Best,
    Shane
    {{ DiscussionBoard.errors[5848252].message }}
  • Profile picture of the author Chris Chicas
    The waiting period is not that long and like Shane said above is a common business practice.

    That is one of the reasons why I spend money in such places, I know that scams are a lot less able to to take place.

    So I'm glad they have this waiting period.
    Signature
    TwinFlameSecret.com
    {{ DiscussionBoard.errors[5848293].message }}
    • Profile picture of the author fluffythewondercat
      Fiver isn't comparable to a job, though.

      It's extremely part-time work. Expectations are different. On mturk you get paid as soon as the requester approves your work. I can think of a number of non-employment situations where I provided a service and was paid the same day, up to and including doing focus group-type work for PayPal and getting $200 per session.

      fLufF
      --
      Signature
      Fiverr is looking for freelance writers for its blog. Details here.
      Love microjobs? Work when you want and get paid in cash the same day!
      {{ DiscussionBoard.errors[5848361].message }}
      • Profile picture of the author Shane N
        Originally Posted by fluffythewondercat View Post

        Fiver isn't comparable to a job, though.

        It's extremely part-time work. Expectations are different. On mturk you get paid as soon as the requester approves your work. I can think of a number of non-employment situations where I provided a service and was paid the same day, up to and including doing focus group-type work for PayPal and getting $200 per session.

        fLufF
        --
        I agree with you for the most part, but think about the nature of the "online" marketplace --> Affiliate marketing, Clickbank, CJ, Amazon, CPA Networks, Adsense, Etc. They all make you wait a certain amount of time before they issue payment and those are not "job" or "employment" type situations either...

        But then again, like you said, there are many things you can do to get paid quicker or immediately, such as charge clients upfront or upon delivery, or even promote "instant Paypal commission" affiliate programs.

        Luckily, we have the luxury of it coming down to personal preference to some extent...

        Best,
        Shane
        {{ DiscussionBoard.errors[5848488].message }}

Trending Topics