The Fiverr platform now has thousands of users, whether they are private customers, professionals or service providers. It is positioned as the number 1 in terms of service proposals. How did this platform manage to develop? How does it continue today to have more and more registrations and sales? This is what we will seek to understand and discover in this article.
What is Fiverr?
Before trying to understand what makes Fiverr successful, it is first necessary to know its history. Fiverr is a company that was born in 2010. The founders had the objective of making the purchase and sale of services very simple, a little like an online purchase on an e-platform. trade.
The two Israeli founders Micha Kaufman and Shai Wininger also created Fiverr.com in order to allow thousands of people to be able to use their skills outside of a traditional job.
It is therefore an innovative platform, a pioneer in the field that has emerged. What’s more, Fiverr is easy to use.
How does Fiverr work?
Fiverr is a company that has deployed an online platform on the SaaP model ( Service-as-a-Product ) in order to facilitate commercial transactions between freelancers and customers. You might be interested in how to rank Fiverr gig on first page of Google by Shaz Vlog.
This started from the observation that past transactions were done completely offline, through outdoor meetings. It therefore took a long time for a freelancer to build up a clientele and the task was much more difficult. Similarly, for customers, they did not know where to look for the provider who could meet their needs.
The platform is accessible by everyone and for everyone, regardless of skill area and level. The possibilities are endless on Fiverr and that’s what makes the site so appealing.
In addition, it allows people without knowledge of the freelance world and without a lot of skills in terms of quotes and invoicing to be able to sell its services. Indeed, everything is standardized so that prices start at $5 and are free.
The creation by the seller of his delivery service serves as a presentation and quote. Contacts are simplified.
To generate revenue and grow, Fiverr.com takes a commission on each sale (around 20%). This allows the founders and the people working in this company to be paid and to generate good profits. The commissions are justified on the fact that Fiverr positions itself as an intermediary between the buyer and the seller.
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Fiverr today
Since 2010, the site and the Fiverr company have evolved a lot. Thousands of people have registered on the platform, both to order and to offer services.
Basically, Fiverr.com mainly offered writing, translation, video editing or graphic design services. Today, the platform has nearly 500 categories of services that are much more varied (business advice, personal development, etc.) and more advanced services such as the complete creation of websites, applications or communication management.
Fiverr is now listed on the US market. In the first 5 years, the company raised more than 125 million dollars, in particular thanks to renowned companies such as Square Peg Capital, Bessemer Venture or Accel .
Features have also evolved. According to a study conducted in the United States, Fiverr.com is among the top 100 most popular sites in 2013. The platform even ranks in the top 200 globally.
How has Fiverr grown since 2010?
Since its very beginnings, the Fiverr.com platform has changed and evolved a lot, both in its form and in the offers and possibilities it offers.
The development of new forms of work
Fiverr surfs and is based on the gig economy model . What is the gig economy ? It is actually a form of work in which an employee does not work for a company full time. We call on him only for very specific missions or projects.
It is indeed globalization and the development of the Internet that allow the emergence of this form of work. The Internet has reduced the geographical barrier that is linked to the traditional labor market. This is called the digitization of work, the main goal of Fiverr.
On this model, any company in the world or any individual can work with a geographically distant person.
This is the very principle of Fiverr. Companies or individuals can choose a service provider based on what they offer and not based on their locality.
In addition to even on an equal footing freelancers around the world, Fiverr also allows to open competition to its maximum in order to offer buyers particularly attractive prices.
This is why the platform works so well: all sellers from all over the world can register and professionals can find a freelancer quickly and at unbeatable prices.
By seizing new opportunities
These new crowdsourcing opportunities (acquisition of ideas, services or content from a wide range of Internet users) allow Fiverr to offer original forms of cooperation with professionals and freelancers from many sectors of activity: artists , consultants, part-time employees, freelancers, independent professionals…
It was also the year 2020, the year of a global pandemic, that the platform experienced its greatest success. The remote work offered and promoted by Fiverr.com has taken on its full meaning and has allowed companies to continue their business despite all the restrictions. Most businesses that have tried Fiverr have become loyal customers who bring in big bucks.
Communication strategy
If you missed them, know that the Fiverr company has also developed its communication strategy to grow and become the most important freelance work platform in the world.
For example, to make itself known in the European market, Fiverr launched major #fiverrconnections advertising campaigns . They made extensive use of social networks and new communication channels adored by a rather young audience.
With companies, Fiverr has also played on communication, highlighting the lack of skilled workers in the web development and digital sector on the traditional job market.
It was therefore an excellent idea to show professionals the opportunities for them on Fiverr.com and especially to highlight the “cheap” aspect of freelancers. Companies have therefore adhered to this principle, seeing in it the possibility of delegating their tasks and certain projects for a derisory cost and much more affordable than if they employed an employee.
During these communication campaigns, Fiverr was successful in incentivizing buyers on the platform to make larger purchases, in order to increase value and earnings per buyer.
It’s also a success for the site’s founders, as the average price spent per order by shoppers was $205 in 2020 compared to $170 in 2019.
How does the Fiverr platform continue to grow today?
Fiverr.com is no longer the only site offering such a working model. He has to face new competition. However, we see that Fiverr remains number 1 in its field, thanks to an effective development strategy.
Fiverr’s offering is always evolving and developing
While remaining on this fundamental principle of “win-win”, the developers of Fiverr do not cease to propose novelties by adding new offers and new functionalities to attract and facilitate transactions between sellers and buyers.
The COVID-19 pandemic has made communication easier for the company in that it no longer needs to attract freelancers, they come naturally to it. Indeed, there are more and more freelancers and the strong competition pushes them to register on Fiverr.com to try to get their business off the ground.
The developers were therefore able to concentrate on the development of the site itself. They continue to improve the algorithm which makes it possible to make better recommendations and better highlights of services for buyers. They save time and can more easily order services from the freelancers who best meet their needs.
In terms of available offers, the platform has made and continues to make the choice to move upmarket. Indeed, several offers are now available to companies in order to offer them high-end services.
Fiverr Pro or Fiverr Business offers
So you will find the Fiverr Pro offer. Freelancers and professionals in their field are presented and selected according to their expertise and reputation on the site. Only 1% of sellers obtain this status and are therefore highlighted for companies that have subscribed to the Fiverr Pro offer.
There is also the Fiverr Business offer, which is the most premium offer on the site. This offer allows companies to have access to exclusive tools that facilitate personalized management of orders as well as collaboration with sellers.
Thus, Fiverr mainly focuses on buyers so that they can find their freelancer more easily and quickly. The developers of the site have therefore introduced “e-commerce experiences”, taking a little bit the model of the giants Amazon or Cdiscount .
How Fiverr continues to grow thanks to its freelancers?
Fiverr’s profits are growing. They have gone from $52 million in 2017 to more than $190 million in 2020. These figures are partly explained by the pandemic, but also by the tremendous development work carried out.
The founders of Fiverr want to continue the development of the platform, attracting new sellers. Thus, the platform, already available in English, Spanish, German, Portuguese, Dutch and French, should open up even more to other countries. This will allow new freelancers to embark on the adventure.
Moreover, the developers have decided to offer new tools for sellers to allow them to advertise and gain more visibility with corporate clients.
Regularly, new categories of services are created in order to inspire and attract new freelancers with varied skills.
The entire user experience is continuously improved in order to continue its development and expansion. Developers are still working on page load times to limit the bounce rate.
Conclusion
The Fiverr platform, which specializes in remote transactions between freelancers and companies, has successfully developed around the world.
Indeed, thanks to developments in various fields such as communication, the improvement of the services offered and the platform itself, Fiverr is still the number 1 site in its sector of activity.
All these assets and the work of the developers of the Fiverr platform have enabled it to achieve certain growth that seems to be sustainable.
Indeed, at present, more than 240,000 freelancers actively offer their services and there are no less than 3.4 million companies and registered buyers. Note that most buyers are SMEs (around 80%).
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