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Small businesses often need to scale up for projects. The work needs to get done, but a company can’t always justify the cost of onboarding full-time employees. Fiverr is a global marketplace that simplifies the on-demand economy, connecting businesses with talented freelancers who can accomplish projects quickly and efficiently.
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Micha Kaufman, co-founder and chief executive of Fiverr, says simplicity was his original goal when he and his co-founder launched the site in early 2010. “Today, everyone has a talent that someone else needs. [We thought], ‘How cool would it be to put these amazing talents together in one place?'” While other freelance marketplaces were more onerous, requiring price negotiation and back-and-forth to define the scope of work, Kaufman says at Fiverr, the initial focus on a single price point ($5) takes that complexity out of the equation. “Buying shouldn’t take more than 20 to 30 seconds,” he says.
Kaufman says the sticky price point is good for sellers, too, because it prevents them from being forced to compete with cheaper offers. “They can do five to 10 [gigs] an hour, and it adds up to a nice income,” he says.
Today, Fiverr has expanded rapidly, with 1.9 million gigs listed and 4,000 new services, across 120 categories, added each day. Just over half the transactions are between $10 and $100 now, thanks to the growth in “premium” gigs, where advanced sellers can augment their services, which can now sell for as much as $500. “That’s how they can achieve financial independence on their own terms,” Kaufman says.
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