Get the most out of Fiverr payment as a freelancer. Learn about the challenges and alternatives with our comprehensive guide.
Fiverr is a leading online platform that connects freelancers with clients from all over the world. With its user-friendly interface and easy-to-use tools, it has become a go-to resource for freelancers looking to showcase their talents and find new clients. Fiverr was founded in 2010 and has since grown to become one of the largest freelance marketplaces in the world, with over 200 million gig offers and services. Fiverr also has a presence in over 160 countries and has helped businesses and individuals from all over the world with their projects and needs. However, despite its huge global appeal and numerous benefits, freelancers on Fiverr also face a number of challenges, including high service charges, limited payment options, and delays in payment processing. In this article, we'll explore these challenges in more detail and provide a comprehensive guide to help freelancers receive Fiverr payments in the best and most efficient way possible.
Challenges Faced By Freelancers on Fiverr
High service charges
One of the biggest challenges faced by freelancers on Fiverr is the high service charges they are required to pay. Fiverr charges a fee of 10-20% of the total project cost, which can have a significant impact on the profits of the freelancer. This fee can make it difficult for freelancers to earn a decent wage for their services and can also make their services more expensive for clients.
For example, if a freelancer receives a project with a cost of $1000, they would be required to pay a fee of $100-$200 to Fiverr, which can significantly eat into their profits. This high fee can also make it difficult for freelancers to compete with other freelancers who do not use Fiverr, as they are able to offer their services at a lower cost.
Limited payment options
Another challenge faced by freelancers on Fiverr is the limited payment options available. Currently, Fiverr only supports a few payment methods, such as PayPal and direct bank transfers, which can make it difficult for some freelancers to receive their payments in a manner that is convenient for them. This can also limit the options available to clients for making payments, which can be a hindrance to securing new projects.
Freelancers that are located in a country where PayPal is not supported, would be unable to receive payments through this method and would be forced to use a different, less convenient payment method. This can result in delays in payment processing and can impact the relationship between the freelancer and the client.
Delays in payment processing
In addition to the high fees and limited payment options, freelancers on Fiverr also face delays in payment processing. Payments can take several days or even weeks to reach the freelancer, which can be frustrating and impact their ability to meet their financial obligations. This can also impact the relationship between the freelancer and the client, as timely payment is a key factor in building trust and maintaining a good working relationship.
If a freelancer is counting on receiving payment from a project in a timely manner to pay their bills or make other financial obligations, they may be left in a difficult position if the payment is delayed. This can also result in negative feedback from the client, which can impact the freelancer's reputation and ability to secure new projects.
Fees for withdrawal of funds
Another challenge faced by freelancers on Fiverr is the fees associated with withdrawing their funds. Fiverr charges a fee for withdrawing funds, which can range from a few cents to several dollars depending on the payment method used. This can add up quickly and eat into the profits of the freelancer, making it difficult for them to earn a decent wage for their services.
Furthermore, the fees can be unpredictable and vary depending on the payment method used, making it difficult for freelancers to budget for their income. Fortunately, many freelancers are able to recoup the fees by negotiating an additional fee with the client or setting a higher price for their work. In addition, some payment methods provide fee-free transfer options for certain amounts. This can help reduce the amount of money lost to fees and make the freelance lifestyle a more sustainable option.
Benefits of Using Fiverr
Global reach and exposure
Despite the challenges, there are several benefits to using Fiverr as a freelancer. One of the biggest benefits is the global reach and exposure that it provides. Fiverr has a large, international client base, which gives freelancers the opportunity to reach a wider audience and find new clients from around the world.
This global reach can be especially beneficial for freelancers who specialize in a particular area or who are seeking to expand their client base. By using Fiverr, freelancers can connect with clients from all over the world, increasing their opportunities for growth and success.
Fiverr's international client base is an invaluable asset for freelancers who have started their businesses and are looking to increase their presence in the global market. With Fiverr, freelancers can connect with potential clients from all over the world, allowing them to increase their exposure and grow their businesses.
Ease and convenience
Another benefit of Fiverr is the ease of use and convenience that it offers. Fiverr provides a simple, straightforward platform for freelancers to offer their services, which can make it easier for them to get started and find new clients. The platform is user-friendly, and freelancers can quickly create a profile, list their services, and start receiving projects.
This ease of use and convenience can be especially important for freelancers who are just starting out or who are looking to quickly expand their client base. By using Fiverr, they can simplify the process of finding new clients and securing projects, which can help them grow their business and reach their goals.
Access to a wide range of clients and projects
Another benefit of Fiverr is the access it provides to a wide range of clients and projects. Fiverr has a large, diverse client base, which gives freelancers the opportunity to find new clients and projects in a variety of areas. This can help freelancers to diversify their services and expand their expertise, which can increase their chances for success and growth.
For example, if a freelancer specializes in graphic design but is looking to expand their services, they can use Fiverr to find new clients and projects in other areas, such as writing or marketing. This can help them to grow their business and increase their earning potential.
Not only does Fiverr provide access to a wide range of clients, but it also offers a range of different services for freelancers to choose from. This allows freelancers to find projects and clients in their area of expertise, as well as in other areas that they may not have considered before. This flexibility can be a great asset for freelancers who are looking to build their portfolios and increase their earnings.
Robust support system
Fiverr also provides a robust support system for freelancers, which can help them to overcome challenges and succeed in their businesses. The platform offers a variety of resources and tools, such as a support center and community forums, which can help freelancers to find answers to their questions and get the support they need to succeed. Fiverr provides access to a network of professionals and experts who can help freelancers hone their skills, find additional work, and grow their businesses. This access to advice and assistance can be invaluable for freelancers who are new to the industry or who have been struggling to make ends meet.
Safe and secure payment system
Finally, Fiverr provides a safe and secure payment system for freelancers, which can give them peace of mind when it comes to receiving payments for their services. The platform uses advanced security measures to protect both the freelancer and the client, ensuring that payments are processed securely and accurately. This system provides the necessary assurance that freelancers require to confidently deliver quality work and receive the payment they deserve. Furthermore, Fiverr offers its users a wide range of options when it comes to processing payments, allowing them to choose the most convenient and secure option for them. This makes the process of payment easy, efficient, and fast for everyone involved.
Best Practices for Receiving Fiverr Payments
As a freelancer, it is important to be aware of the best practices for receiving Fiverr payments in order to have a smooth and hassle-free experience on the platform. Over the years, freelancers have complained about the cost of receiving Fiverr payments, hence the creation of these best practices.
Setting up an alternate payment method
One of the challenges faced by freelancers regarding Fiverr payments is limited payment options, which can result in delays in payment processing and high fees for withdrawals. To overcome this challenge, it is recommended that freelancers set up an alternate payment method such as IntaSend, especially for freelancers in Kenya or East Africa. The whole IntaSend system was built to cater to this specific challenge. Freelancers can enjoy all the features of IntaSend, such as no-code payment links and invoicing, which can help them get paid easily. All they have to do is send these payment links or invoices to their clients via email or social media and get paid in minutes.
Negotiating for direct payments
Another option for freelancers to receive payments is by negotiating with clients for direct payment, which can help to bypass Fiverr's service charges and fees for withdrawals. Freelancers can discuss this option with clients during the negotiation process for a project, and agree on the most suitable payment method for both parties. Direct payments may involve more paperwork since freelancers are now responsible for their own taxes, invoices, and declarations, but the upside is that they get to keep the majority of the payment. Direct payments involve a higher level of trust and communication between the freelancer and the client but can help them both bypass Fiverr's fees.
Keeping records and receipts for tax purposes
It is important for freelancers to keep records and receipts of their earnings on Fiverr, as they may be required to pay taxes on their income. Keeping accurate records and receipts will help freelancers easily calculate their taxable income and ensure that they are in compliance with tax laws.
It is highly recommended that freelancers keep where possible digital records of all of their financial activity, as this will make filing taxes much easier. It is particularly helpful to keep a detailed log of all the payments that are received, detailing the source of money, dates, and the amount that was received.
This log can be used to aid in the filing of taxes, ensuring that the correct taxes are paid and that income is not under-reported. It is important to note that different countries have different tax regulations, so it is important to research the relevant laws and regulations before attempting to file taxes.
Protecting financial and personal information
When using any online platform, it is important to protect personal and financial information. On Fiverr, freelancers should avoid sharing sensitive information such as bank details or passwords with clients or anyone else on the platform. They should also use secure payment methods and avoid making payments through unsecured channels. It is important to remember that Fiverr is an online platform, and not all transactions can be trusted. All freelancers should be aware of the risks associated with using online platforms and take the necessary steps to protect their information.
Staying informed on policies and changes
Fiverr's policies and procedures are subject to change, and it is important for freelancers to stay informed about these changes in order to avoid any issues with payments or other aspects of their work on the platform. Freelancers can stay updated by regularly checking the Fiverr Help Center and other official Fiverr resources. It is important to note that Fiverr can modify its policies and procedures without notifying users directly. Therefore, it is a good idea to regularly review their guidelines and terms of service to ensure compliance with any changes.
Getting Paid with IntaSend
We mentioned earlier that IntaSend is everything a freelancer needs to get paid conveniently and even more. Whether you’re in the freelance business or you own an e-commerce store, IntaSend has financial services tailored to everyone’s needs. Freelancers have cited Fiverr’s high charges for withdrawing money as one of the main reasons they find the going tough on the platform. But with IntaSend, you can enjoy convenient and fast payment processing at a very reasonable cost. You can maximize all the features meant for freelancers, such as the invoicing system and payment links to make payment processing very seamless for your and your clients. If you don’t have an IntaSend account yet, you can create one here.
Cover Photo by Microsoft 365 on Unsplash
