As a consultant helping small businesses maximize their online presence, I often get asked about hiring freelancers. Fiverr, with over 4 million buyers and 380,000 sellers globally, sits at the forefront. Their impressive growth mirrors the expanding freelance economy.
But is Fiverr right for your small business needs? By digging into the data around their funnels, finances, and user behavior, we can better assess the platform‘s value.
Millions discover and join Fiverr annually
While Fiverr sees over 42 million transactions annually, many more people discover and evaluate the platform. The visitor-to-lead conversion rate stands at 27.1%, continuing an upwards trend from 24.5% in 2017.
Behind that funnel, Fiverr employs 545 people to continually improve the buyer and seller experience. And there‘s more room to grow – Fiverr started in 2010 with only 8 basic service categories before expanding to over 300 services today.
Traffic comes from multiple sources
In their early days, Fiverr relied heavily on search traffic, including 19.6% from organic and 6.28% from paid search last year. Referrals account for the largest share at 35.47%, while 13.58% comes direct, showcasing strong branding. With their apps driving repeat usage, 8.15% of traffic originates from mobile.
| Traffic Source | Percentage |
|---|---|
| Referral | 35.47% |
| Direct | 13.58% |
| Organic Search | 19.6% |
US leads in buyers and revenue
Fiverr appeals to freelancers and entrepreneurs across over 160 countries. But a few key markets drive most of their revenue. The US contributes 53.14% of total revenue, trailed distantly by Australia, Canada, UK, and New Zealand.
In fact, the US is the leading source of buyers as well, generating 21.67% of all traffic. So enhancing support for American small business owners could unlock greater longevity and lifetime value.
Financials signal massive runway
How do Fiverr‘s finances stack up? Revenue hit $189.51 million in 2020, a 77% year-over-year jump. And remarkably, 58% comes from repeat buyers – buyers initially spending over $200 per year. With strong fundamentals, Fiverr achieved a 53.78% CAGR since 2017.
I expect revenue growth to continue outpacing traffic growth in the years ahead. Fiverr spends just over $94 million annually on sales and marketing to stay atop buyers‘ minds. Optimizing that spend could lift their 27.1% visitor-to-conversion rate even higher.
Sellers stay loyal with revenue potential
The most encouraging statistic? Fiverr earns an NPS of 79 from sellers, signaling they are loyal to the platform. Between gigs, addons, tips, and software subscriptions, strong performers can earn five-figures or higher annually.
Sellers seeking to maximize earnings should target buyers in Service categories like Video Marketing, where projects average $18,000. Graphic Design and SEO content also present solid options.
Choose sellers wisely as a buyer
On the buyer front, I always advise small businesses to vet any seller carefully before assigning critical work. While most sellers have good intentions, problems can arise with delivery and quality.
Key steps buyers should take:
- Review negative feedback and ratings first
- Require past samples before hiring
- Have clear requirements and style guides upfront
- Use milestones for large projects
Taking these preventative steps allows buyers to tap into Fiverr‘s talent pool while minimizing project risk.
Verdict
As the data shows, Fiverr has struck gold with their freelance talent marketplace. Both buyers and sellers flood to the platform daily, attracted by choice and value. And with increasing market dominance, network effects take hold making Fiverr hard to disrupt.
Small businesses comfortable navigating online marketplaces can access top-notch talent and capabilities affordably. As the future of work trends more remote and digital, expect Fiverr‘s exponential growth to continue outpacing rivals.
