More and more people are choosing to work on a freelance basis, either as their main job, or to supplement their income. Freelance marketplace platforms like Fiverr make it easy for people to connect with businesses that need their services, and build a freelance income stream.
If you’re a freelancer, you may find you benefit from getting a specialist account to help you manage your money. We’ll take a look at the TransferWise borderless account for freelancers as a great option to help freelance workers receive payments from clients who may be all over the world. Read on for more about how you can build your freelance income with Fiverr, and save on banking costs by using TransferWise for freelancers.
Fiverr is a freelance marketplace which allows people to advertise their skills, and sell their services to employers all over the world. Users create a service - known as gigs - which typically are offered at a 5 dollar opening price. Employers can then connect with them, and either buy the basic service offered, or opt for add-ons and custom made offers which may bring the price up.
Although Fiverr gets its name from the fact that their opening price is typically five US dollars, you can also upsell additional services, and create custom orders. In effect, this means that you can charge as much as you need to for the work you provide through the website.
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Before you get started, a word.
Banks and money transfer providers often don’t convert your money with the mid-market exchange rate when you make or receive an international payment. Instead they add a mark-up and charge you a hidden fee that way.
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Check out TransferWise’s borderless multi-currency account, for freelancers to invoice like a local around the world and receive multiple currencies for free. It’s up to 14x cheaper than PayPal, so why not give it a try.
TransferWise also has a lot of additional features for business users. You can connect with Xero to make your life easier, upload a batch of payments in one go or even automate your payments by integrating with our API. And there’s more to come in the future.
Now, back to what you came here to read.
Fiverr is open to anyone selling a legal digital service. That includes writers, translators, designers, web developers, voice over artists, video editors and much more. There are over 200 categories, covering gigs of all types, with freelancers all over the world listed.¹
To get started as a freelancer on Fiverr, you’ll need to create an account, and set up your gigs online. That means you create an advert or listing for the service you offer, which employers can search for or find by browsing a category. You’ll be able to create up to 7 gigs when you first start on the site, and may be allowed to add more as you become a more experienced freelancer with the site.²
When an employer selects your gig, you’ll receive an order. You complete the work they have ordered and deliver it through the website. There’s the opportunity to also sell connected services, or to create a custom project for that employer which you then price based on the specific work required. When you deliver the work to the employer, and both mark the project as completed, you’ll be paid.¹
Freelancers receive feedback through the site, for the work they do. These reviews allow new employers to assess whether or not they’re the right person for their project. In this way, freelancers can build a reputation on Fiverr, and access better jobs, and other perks from the platform, such as getting paid more quickly for work, and getting more prominent listings.
When a buyer orders a service from a freelancer on Fiverr, they pay the fee, which Fiverr then hold for safekeeping. Once the work is done, Fiverr will release the payment, although there’s a wait of 14 days for regular users, and 7 days for top rated users. This gives time for any issues to be sorted out before money changes hands.²
Once your payment has been released, you can withdraw it using one of the Fiverr withdrawal methods. These are:
- PayPal - offered in some countries based on local rules
- Fiverr Revenue Card - available worldwide
- Local bank transfers - available worldwide
- ACH - available in the US only²
Receiving USD outside of the US can be an issue, as there can be additional fees involved - so you receive less money for your hard work. The good news is that you can get paid using local US bank details, even if you don’t hold a bank account in America, if you open a TransferWise borderless multi-currency account.
There may be a fee to pay for withdrawing your money from the platform - more on this below.
When you use Fiverr, you’ll pay a fee for the service. This includes a flat rate and a possible withdrawal cost or currency conversion fee which is based on the way you choose to access your money.² Here’s what you need to know:
|Basic service fee||20% of the order value⁴|
|Withdrawal fee||Withdrawal fee is based on the method chosen: PayPal - no fee Fiverr Revenue Card - 1 USD to receive payment in 2 days, 3 USD for payment to be released within 2 hours Local bank transfer - 3 USD per transfer ACH (US only) - 1 USD per transfer²|
|Currency conversion fee||Fiverr generally works in US dollars. If you are paid in US dollars, and want to withdraw your money to a non-USD account you’ll pay a currency conversion fee of 2%³|
There are plenty of different freelance marketplace sites out there, so it’s worth reviewing your options to decide which will suit your skills and level of commitment. Here are a few considerations, if you’re thinking about starting to offer gigs through Fiverr:
- There’s a very wide range of services on offer - so the chances are that you’ll have a skill or hobby which you can list as a Fiverr gig even if you’re new to freelancing
- The website is simple to use, and the customer service is reputed to be fast and fair
- You can offer small gigs, so you can start to work freelance even if you don’t have a lot of time to spare
- Fiverr has a user community, offering help and support for freelance workers
Of course, there are also the downsides. Here are some to think about:
- Fiverr fees are higher than some other platforms. 20% flat charge, plus possible withdrawal costs can eat into your profits⁴
- You’ll need to wait up to 14 days to withdraw your payments
- It can take time to build a reputation on Fiverr, making it harder to get orders when you first start out
- Freelancers from all over the world are listed, making it very competitive
Depending on the skill you have to sell, and how much time you want to spend working freelance, you will have some different options to choose from when it comes to connecting with employers. Some freelance marketplaces are highly specialised, offering services only in one particular field for example. This might work well if you have a very skilled job, or work in a smaller niche. However, if you’re more flexible and interested in taking on a variety of projects, then getting listed on a generalist marketplace might work better for you.
Spend some time researching the different options out there. The fees and the structure of the sites can vary widely, so you could find some suit you better than others.
Here are a few generalist freelance marketplaces you may look at:
- Outsourcely - a popular option because freelancers receive 100% of the pay for a job. Many of the options available are long term projects, aimed at remote workers
- Freelancer.com - 1350 different categories to choose from, with a wide range of jobs open you can bid for and get started on right away
- Upwork - one of the largest generalist marketplaces out there, rewards freelancers who get repeat business with lower fees for long term work
- PeoplePerHour - many different types of freelancers are available, which makes this a popular site with employers
Working freelance - either as a full time career, or to earn a little extra cash on the side - is a very popular option these days. It’s also getting easier to connect with employers, thanks to freelance marketplace websites like Fiverr.
If you’re thinking of making the leap to freelance work, you’ll want to have a smart and flexible way to manage your money. A good option is the TransferWise borderless multi-currency account for freelancers, which will let you invoice and receive payments in a wide range of foreign currencies, so you can work with employers all over the world easily. See how TransferWise can help you pay less in bank fees while you build your freelance business.
1.https://www.fiverr.com/start_selling?source=top_nav Start Selling on Fiverr
2.https://www.fiverr.com/terms_of_service Terms of Service
3.https://register.payoneer.com/fiverr-fees/ Fiverr - Fees for Conversion
4.https://www.finder.com/in/fiverr Price structure of Fiverr
Sources checked on 20 June 2019.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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