Discussion in 'BlackHat Lounge' started by reisuke, Feb 10, 2011.
Hi sorry a noob queston, but how the owner of fiverr earns money from the site?
Buyer pays $5 and seller get's $4, so it's $1 for the fiverr.
it's so basic. you pay 5$/gig and they pay 4$ to the author of gig! so 1$/gig. now imagine how many orders total day receives from around world x 1$= their income!
it's that simple!!
I just wanted to add to this, $1 seems small, but it's actually 20% of every single transaction made there... Not so small now? Huh?
they got $1 for each order purchased.
if there are 100.000 transactions in one day, it means they earn 100k USD a day!
if 500 transaction happen per day..hurmm..it still $500 per day ..what did the owner have to do? just approve a gigs and provided the platform..
Wow thanks for the reply
he needed the idea in the first place, make it into reality and drive traffic to the site, now he need to maintain the site and make it better & better, and i guess the support team doesn't work for free either
there are around 3k orders per day (if you check one of your order number from today and one from yesterday placed around the same time, you can see)
without knowing the exact amount of the costs/expenses, i think its safe to say: the owner generates a really nice profit day by day
I wonder if it'll eventually be purchased by a larger company? I'm sure it could be further monetized easily...
Whats Paypals fee for a $1 though?
Owner making 3000 transactions per day? No way. That's chumpchange if you need to:
1. Pay for electricity
2. Pay for rent
3. Pay for techs
4. Pay for CS people
5. Pay Paypal for fees
6. Initial advertisement cost.
7. Pay for servers/bandwidth
...The list is longer but just gives you an idea that if he made 1 dollar x 3000 transactions = 3000 USD...then that's chumpchange.
If he does 30,000 transactions per day then we're talking. With alexa 300-400 the owner is getting about 1-2 million visitors per day, unique.
yea, around 3000 day, somewhere between 3000-4000, but it's closer to 3000 if you see an avg
you can check this from the order numbers easily if you have a few orders every day
Don't know why the fiverr-clones have jumped on this then. That's pocket change for all the effort.
You are really really stupid..
With $90,000 zero margin (non real profit and not turnover), per month you can have several technicians, pay server costs, one administrator and still have good salary for you. And good standing company.
15 junior administrators/technicians - $3,000 each (that's good salary for junior position) = $45,000
1 senior administrator = $10,000
Server costs, bandwidth, electricity = $5,000
Advertising costs = $10,000
Office rent, cleaning, misc stuff, parties = $5,000
Salary for the owner = $90,000 - $5,000 - $10,000 - $5,000 - $10,000 - $45,000 = $15,000
This salary for not doing anything is good enough for a company consisting of 17 people.
If the owner decides to fire the senior administrator, he can have $25,000 per month and still space for improvement
Cutting the advertising costs will not be a good move, that can reduce the revenue.
All the amounts are only rough estimates for educational purposes for the persons who are too lazy to believe that you can earn well with $1.00 commission.
i must be since i'm ordering the 911 carrera (2011 so you don't start getting funny ideas of an 80s brick whip) next month made from internet money. must be really stupid yeh
3000/day is chump change if you run a site that has ~2 million UVs every day from all the good countries with demographics being mostly male and young. Lots of other things you could do to monetize such traffic than to pull 1 dollar from each. You're looking at banner rates going around 3 dollar/cpm.
Baraba, you forgot the paypal fees of 1 USD. What do they take on this if it is done under their micropayment scheme? 0.15 USD? So owner gets 0.85 USD per transaction. Don't know where fiverr is operating out of, so that depends on the rent.
You forgot the accountants...or maybe owner has a BSc in accounting..? lol
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