I been looking at the site Fiverr.com in the last week. If you haven’t heard of it, you’re missing out. The concept behind Fiverr is simple- “what would you do for $5”? Sellers post what tasks they are willing to do and buyers pay those sellers for that task. The catch? The site takes $1 for every transaction, a 20% fee! After paying for a few tasks, I recommended it to many people, including many in the TeenBusinessForum community. It needs to have an affiliate program.
There’s only two winners to the site Fiverr.com. The first is the site itself. Think about the transaction fee- 20%. eBay only charges from 1-5% for each transaction. The people who made the site is getting rich- very very quickly.
The other winners are the people who buy from Fiverr.com. There are certain things which are very intriguing to me, like handing out fliers are a school campus, drawing a cartoon of someone, getting a shoutout on Facebook, and even some silly stuff. See the results of someone from the community getting a cartoon drawn. These are things that are either worth more than $5 or I can’t do myself or both. Fiverr provides outsourcers a great way to get those odd jobs done. Both oDesk and Elance don’t offer those things.
It’s the people who use it to try to make a lot of money. It’s great for kids, high school students to make some money on the side. Some jobs take more than 10 minutes to complete- like drawing a cartoon and backlink building. But for someone who has a job, it’s not worth their time to do $5 tasks unless they can do it very quickly. Unlike eBay and Etsy, I can’t see how people can make real money using Fiverr.com. And that might be ok.
Some Things Haven’t Change
Prices for certain tasks seem to stay the same. A shout-out on Facebook to advertise a website or fan page is $5. A 400 word article is still $5. You can still get scammed if you’re not careful. Fiverr has built in feedback for each task completed. Even with that, buyers still need to be careful. Here’s why. Fake feedback can now be brought. The buyer just can’t look at how many stars or thumbs up someone has. They have to look past that and check if each person who gave feedback was a legitimate buyer.
Global Workforce Competition
So what happens if someone in a developing country and someone in the US is competing for the same task, both valued at $5? Let’s say the task was to get a shout-out on Facebook to advertise a website, like the following “Hey everyone, check out this website, it’s so cool”. It doesn’t matter who gets the task because both are equally qualified but the person living in the developing country will get more for the $5 than someone in the US because of the standard of living. So because of this, it would make sense that a majority of the sellers are either in developing countries, highschool students or college students. I just can’t see someone making 30-50k/year trying to make money on the side with Fiverr.
How To Use Fiverr
In the end, Fiverr is a great place to outsource. Go get fliers passed out in a different state (or country). Figure out how much your hourly rate is worth. Let’s say your hourly salary comes out to $20. That means, you have do 5 tasks in a hour order to make $20 ($5 goes to the transaction fee). A task at that rate should take you roughly 12 minutes. Now if you need to have a cartoon drawn for your website, ask yourself if you can do it under 12 minutes. If you can’t, outsource it. If you can’t pass out 100 fliers to college students under 12 minutes, outsource it.
What are your thoughts or experiences in using Fiverr?
[Image credit: thetruthabout]