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What Business Model Is Fiverr?

Last updated on September 28, 2022 @ 8:33 pm

Fiverr is an online marketplace that enables businesses and individuals to connect with freelancers offering digital services in 300+ categories. Services offered on Fiverr range from graphic design, copywriting, and video editing to virtual assistant services, SEO consulting, and voice-overs. Fiverr’s business model is based on charging a commission for each transaction between buyers and sellers.

Fiverr was founded in 2010 by Shai Wininger and Micha Kaufman with the aim of providing an online marketplace for people to buy and sell services. The name “Fiverr” comes from the fact that the vast majority of services on the site are priced at $5. Since its launch, Fiverr has become one of the most popular sites for freelancers to offer their services.

In 2012, Fiverr raised $15 million in Series B funding led by Accel Partners. In 2013, the company raised an additional $30 million in Series C funding from Bessemer Venture Partners. In total, Fiverr has raised over $50 million in venture capital funding.

Fiverr went public in 2019 and is currently traded on the New York Stock Exchange under the ticker symbol “FVRR”. The company has a market capitalization of over $2 billion as of 2020.

PRO TIP: Fiverr is a website that allows people to sell their services for $5.00. There are many businesses that use this model, but there are also many scams associated with it. Be very careful when using this website, and make sure that you only deal with trustworthy people.

Fiverr’s business model is based on charging a commission for each transaction between buyers and sellers. The company makes money by taking a 20% cut of each transaction.

For example, if a freelancer charges $100 for a service, Fiverr will keep $20 and the freelancer will get $80. This commission structure applies to all services offered on the site regardless of price.

In addition to its transaction-based revenue model, Fiverr also generates revenue through advertising and premium memberships. advertisers can pay to have their ads displayed on the site, and members can pay a monthly fee for access to exclusive features and discounts.

Fiverr is a popular platform for businesses and individuals to connect with freelancers offering digital services. The company makes money by taking a 20% cut of each transaction and also generates revenue through advertising and premium memberships.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.