Fiverr is an online marketplace that allows businesses and individuals to connect with freelance services providers. Services offered on Fiverr range from digital marketing and graphic design to video editing and web development. Fiverr’s business model is based on a commission fee charged to service providers for each gig completed.
This fee is typically 20% of the total cost of the gig. In addition to the commission fee, Fiverr also charges a processing fee of 2.9% + $0.30 per transaction.
Fiverr’s business model has been successful in attracting a large number of users to its platform. As of 2019, there are over 1 million service providers registered on the site and over 7 million gigs completed. Fiverr has been profitable since 2016, with revenue growth of over 100% year-over-year.
The company has raised over $200 million in venture capital funding and is backed by leading investors such as Accel Partners, Bessemer Venture Partners, and Tiger Global Management.
Fiverr’s business model is based on charging a commission fee to service providers for each gig completed. This fee is typically 20% of the total cost of the gig.
Fiverr’s business model has been successful in attracting a large number of users to its platform.
Conclusion:
Overall, Fiverr’s business model is successful in connecting businesses with freelancers for various services at an affordable rate. The company makes profit by charging a commission fee to service providers as well as through processing fees per transaction.
