1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

how the owner of fiverr earns money from the site?

Discussion in 'BlackHat Lounge' started by reisuke, Feb 10, 2011.

  1. reisuke

    reisuke Registered Member

    Joined:
    Sep 25, 2010
    Messages:
    53
    Likes Received:
    0
    Hi sorry a noob queston, but how the owner of fiverr earns money from the site?
     
  2. littlewebdragon

    littlewebdragon Jr. VIP Jr. VIP

    Joined:
    Dec 30, 2007
    Messages:
    1,139
    Likes Received:
    366
    Occupation:
    Occupation
    Location:
    Location
    Pretty simple.

    Buyer pays $5 and seller get's $4, so it's $1 for the fiverr. :)
     
    • Thanks Thanks x 2
  3. adwaitk007

    adwaitk007 Junior Member

    Joined:
    Jun 14, 2010
    Messages:
    150
    Likes Received:
    34
    Location:
    India
    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!! :D
     
  4. littlewebdragon

    littlewebdragon Jr. VIP Jr. VIP

    Joined:
    Dec 30, 2007
    Messages:
    1,139
    Likes Received:
    366
    Occupation:
    Occupation
    Location:
    Location
    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? :)
     
  5. wpbacklinks

    wpbacklinks Elite Member

    Joined:
    Mar 27, 2010
    Messages:
    3,418
    Likes Received:
    1,350
    Gender:
    Male
    Occupation:
    Affiliate Marketer
    Location:
    Everywhere
    they got $1 for each order purchased.

    if there are 100.000 transactions in one day, it means they earn 100k USD a day!
     
  6. diceinc

    diceinc Regular Member

    Joined:
    May 15, 2009
    Messages:
    288
    Likes Received:
    28
    Occupation:
    Freelancer
    Home Page:
    if 500 transaction happen per day..hurmm..it still $500 per day :D..what did the owner have to do? just approve a gigs and provided the platform..:rolleyes:
     
  7. reisuke

    reisuke Registered Member

    Joined:
    Sep 25, 2010
    Messages:
    53
    Likes Received:
    0
    Wow thanks for the reply
     
  8. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

    Joined:
    May 1, 2009
    Messages:
    6,335
    Likes Received:
    7,494
    Gender:
    Male
    Occupation:
    Geographer, Tourism Manager
    Location:
    Ghosted
    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
     
  9. Psikilla

    Psikilla Newbie

    Joined:
    Jun 14, 2009
    Messages:
    11
    Likes Received:
    0
    I wonder if it'll eventually be purchased by a larger company? I'm sure it could be further monetized easily...
     
  10. wannabie

    wannabie Elite Member

    Joined:
    Mar 11, 2009
    Messages:
    3,807
    Likes Received:
    2,955
    Occupation:
    Seo and Marketing Suprisingly
    Location:
    Your bedroom window
    Home Page:
    Whats Paypals fee for a $1 though?
     
  11. MrSmith

    MrSmith Newbie

    Joined:
    Sep 15, 2009
    Messages:
    43
    Likes Received:
    88
    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.
     
    Last edited: Feb 23, 2011
  12. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

    Joined:
    May 1, 2009
    Messages:
    6,335
    Likes Received:
    7,494
    Gender:
    Male
    Occupation:
    Geographer, Tourism Manager
    Location:
    Ghosted
    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
     
  13. MrSmith

    MrSmith Newbie

    Joined:
    Sep 15, 2009
    Messages:
    43
    Likes Received:
    88
    Don't know why the fiverr-clones have jumped on this then. That's pocket change for all the effort.
     
  14. henga

    henga Junior Member

    Joined:
    Aug 20, 2007
    Messages:
    182
    Likes Received:
    27
    You are really really stupid..
     
  15. Baraba

    Baraba Regular Member

    Joined:
    Jun 25, 2010
    Messages:
    436
    Likes Received:
    138
    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.
    Lets see:

    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.
     
  16. MrSmith

    MrSmith Newbie

    Joined:
    Sep 15, 2009
    Messages:
    43
    Likes Received:
    88
    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
     
    Last edited: Feb 23, 2011