This is a Guest post from Martin Njounkwe, a young ambitious entrepreneur with various online start-ups, who unlike most young bloggers – has taken his entrepreneurial thinking outside the box and created an almost passive income stream using the new and much talked about service: Fiverr. This is the first in what will be a series of posts from the very guy who is making a consistent income on this new sharing platform.
I first heard about Fiverr about two weeks ago, and in that time I have seen at least 20 posts on the subject. Clearly it’s a hot topic,and one that needs to be discussed further. So without further ado, allow me to attempt to get out of your way and hand the floor to Martin…
Debunking Fiverr Myths
The introduction of Fiverr, a marketplace website where jobs can be done and offered at a fixed price of 5$ has being greeted with mixed reactions from the general public with some calling it a “scam” and others completely discarding it without even giving it a try.
Fiverr, is not a scam! Here I will debunk the top myths surrounding this website and help clarify why you, yes you! Should be on it!
Myth N°1 : How much do I get paid per gig ?
There’s being a lot of confusion on how much one really receives at the end of a gig. This is as a result of Fiverr mainly advertising the gross and not the net of what is received.
On Fiverr each gig costs you 5$, but the contractor doesn’t not pockets all the 5$. The 5$ is in fact a gross value and the net value/gig being in the region of 3$.
So where does all the other 2$/gig go to? First off, for every 5$ you receive Mr Fiverr, gets a clean 1$ cut. So let us say, you have got 10gigs ordered and marked as complete. Your gross income in total is 50$ but your net income is 40$.
Next after Mr Fiverr’s 1$ has being subtracted, you get charged for every money you withdraw. Yes! You get charged for withdrawing your own money! But fortunately there is a way to reduce the impact of this fee and its by letting your available funds accumulate before you withdraw, this way you get charged once instead for every withdrawal.
Myth N°2: Must my funds reach a certain amount before I can withdraw it?
No! At first during the first few months of Fiverr’s existence you had to reach 40$ before you could withdraw your funds but this is no longer the case.
Now you can withdraw your funds once they have being cleared which takes 15 days, after the buyer has marked the order as complete.
The is a downside to this as well as an upside. The downside being you get charged by paypal for each withdrawal let us say you withdraw your 4$ every time you have it available in your funds; you will be charged around 1$ by paypal. So at the end of the day for 10 gigs and 10 withdrawals you will be left with a net income of 30$ whereas if you cleared your funds once you had reached 50$ you will have a net income of 39$ that is after Mr. Fiverr has taken his nice cut of the cake.
The good side being, some people are not fortunate to have enough of orders in order to reach the threshold level, hence being able to clear your funds at anytime might be better at the end of the day even though you get charged more.
Myth N°3: When do I receive my money after delivering the goods/services?
With Fiverr, when you deliver your service/product your contractor has 3-5 days to mark it as complete and provide you with feedback. During this period your money is in the “Upcoming Payments” category.
After the contractor has marked the gig as complete and provided feedback your money then moves to the “awaiting clearance” category and from there you have 15days till your money is available for withdrawal.
So in total you have 20 days maximum to receive your money. So how do you make the most of this? Simple, by maximizing the number of orders you receive.
Want to start making money on Fiverr tomorrow?
This is the first in what will be a series of posts looking at Fiverr in a lot more detail, but in the meantime I am reading his eBook ‘How to make money on Fiverr‘ and I have to say – even I am tempted to give it a shot. Seriously, Martin has really shown some entrepreneurial brilliance with this one – demonstrating his ability to think outwardly, and act quickly in order to make his living online. Oh, and he shares a couple of resources here that I think are worth a lot more than the $20 price tag alone!
I will be posting my honest and thorough review of this eBook in the coming week. (I’m actually going to try his methods and see if I can generate some income by this time next week! – If I can then I reckon that would be one hell of a review – what do you think Martin?)