Fiverr is one of the fastest growing places for businesses of all sizes to find affordable, talented freelancers. Many professionals look down at Fiverr, claiming that anyone who sells their services for $5 must not be that good. But, Fiverr has been around for several years now. It has matured. It has also become one of the best places to earn serious money online. You can make real money on Fiverr, if you are willing to treat it like a business.
Fiverr is a Marketplace
Fiverr is different from many online portals for Freelancers. Here you don’t have to bid against a sea of other providers. Instead, you set your prices and describe your services. There are writers, coders, designers, sound engineers, and many other service providers making most, if not all their income from Fiverr.
You also aren’t limited to selling things for $5. Fiverr has different levels of sellers. When you first sign up you are limited to the amount you can charge and the number of gigs you can offer. But, you as you make sales you level up. With each level you gain access to more options. Top Rated Sellers can create custom gigs priced as high as $10,000. The highest level of seller is the Top Rated Seller. Unlike other levels, the staff at Fiverr chooses Top Rated Sellers.
If you want to make serious money on Fiverr you need to level up as quickly as possible. This means you have to give exceptional service and deliver consistent high quality results. If you have an attractive offer and consistently get good reviews, you will quickly build a loyal following of customers.
Understand Your Value
On Fiverr you are in control of your pricing. It is tempting to price as low as possible to try and beat the competition. This is a mistake. You have to understand the value you provide your customers. Your time is valuable. You need to figure out how much you are willing to sell your time for.
At first you may need to work for cheap until you have established a solid reputation and have a level or two under your belt. But, after that you should steadily raise your prices. You will lose some early customers, but you will attract others.
When you are setting your prices consider what you want to make an hour. Remember that Fiverr is taking a 20% commission for delivering a steady stream of customers to you and for making sure you get paid. After you know how much you want to make an hour, you can set your prices based on that. It is possible to make $100 an hour or more on Fiverr if you have the right offering.
Don’t worry about setting your prices too high. With Fiverr you can change your rates at any time. If business is slow try cutting your rates. If you demand is too high, raise your rates.
Power of Positioning
Because Fiverr is a large marketplace, there are different segments. You need to decide what type of customers you want. If you want to do bulk work, set your prices absurdly low. There are plenty of people looking to pay as little as possible. But, you will never be happy or make enough money with this strategy.
On Fiverr there are also many buyers willing to pay top dollar for top talent. You want to go after this market. There are fewer buyers in this segment of the market, but there are also far fewer sellers. When you charge more you need fewer buyer to make more money. If you are a designer you could charge $5 for a logo like thousands of other sellers. You could also charge $25 for a logo. At this higher price point you need five times fewer customers to make the same money. If you establish yourself as a top talent, there is no reason you couldn’t charge $50 or even $100 for a logo. You can create your own packages to sell to customers.
If you position your service as a high-end service you will attract high-end customers. High-end customers are almost always easier to work with. They are more likely to become repeat buyers than people who are seeking the lowest price.
The secrets to making money on Fiverr are not that different from making money in any other type of business. You have to do great work that people want to pay for. The sellers who do the best are focused on making the most money per sale, not making the most sales.
No matter what the haters say, Fiverr is a place talented people are earning real money. If you want to join them, ignore the haters and start selling today.