SWOT Analysis of Fiverr | Fiverr Strengths, Weaknesses, Opportunities & Threats
1. What is Fiverr?
Fiverr is a website platform where freelancers can be hiring to sell the services and get paid for it.The services such as design and brand, create a YouTube video, or voice chat.
These freelancers usually cost as low as $5 and can be hired on a monthly basis.
The Company was launched on February 2010 by Micha Kaufman and Shai Wininger and the Headquarter is Tel Aviv in Israel.
2. How is Fiverr Business Model?
Fiverr Business Model consists of these 3 main aspects, namely
a) Free services: The users must pay at least $5 for each order.
b) Freelancers: Fiverr comes with thousands of Freelancers who offer a wide range of service in order to help the users in and ease or solve a problem. And each freelancer has to pay $5 for each order
c) Supplier: The users can orders through Fiverr and pay the corresponding fees to the freelancers.
3. How Does Fiverr Make Money?
a) Advertisement-Fiverr will display advertisement that the freelancers can use to promote their services or products.
b) Affiliate marketing: If the user places order, Fiverr will get the commission to the supplier.
The commission is usually 10 percent of the total value of an order.
c) Referral Program: The affiliate program is a commission-based program that rewards affiliates for recruiting new freelancers and users to Fiverr’s website.
d) Upselling: Fiverr will provide the top-up service such as professional business cards, extra communication channels like Skype or telephone or extra SEO services.
e) Subscription: Subscription is another main income source of Fiverr. The users can also use Fiverr for free and get the service on a monthly basis.
4. Fiverr Categories
Fiverr Categories include;
a) Audio and video
b) Design and photos
c) Writing and translation
d) Business services
e) Advertising and marketing
f) Education and training
g) Health, wellness and fitness
h) IT and software development
i) Online tools
j) Personal services
k) Social media & marketing
l)Web design and development
m) Other services (business, entertainment, etc.)
5. Explain the Fiverr Revenue and Financials of 2015 to 2021?
The Fiverr Revenue and Financials of 2021 will be based on the following assumptions:
Revenue: The revenue in 2015 the company has raised over $60 million in funding thus far.
They brought the total funding to date to $ 110 million and in 2021 the company reported $ 189.5 million in revenue for 2020 fiscal year a 77% increase from previous year ($107.1M)
6. Fiverr-Unique Selling Proposition & Competitive Advantage?
Fiverr has the unique and efficient proposition where the users will not need to know more things and can focus on building up their business and making money.
Furthermore, Fiverr has the competitive advantage as it is one of the easiest ways for users to set up online business.
7. Fiverr Competitors
Fiverr has many competitors such as;
a) Upwork: Upwork is the biggest competitor of Fiverr because they also offer services on their platform.
b) Gigster: Gigster is also a competitor of Fiverr because they also offer services on their platform.
c) Guru: Guru is a competitor of Fiverr because they also offer services on their platform.
d) Freelancer: Freelancer is the biggest competitor of Fiverr because it offers similar services in various areas such as writing and translation, web designers and developers and video editing.
e) Rivvr: Rivvr is the competitor of Fiverr because they also offer services on their platform.
f) Unbounce: Unbounce is another competitor of Fiverr because they offer similar services in various areas such as web design and development, video editing and social media marketing.
8. SWOT Analysis of Fiverr
• Fiverr Strengths
a) Easy way to communicate with Freelancers: The users can easily communicate with the freelancers and they just need to right message and the users will get a reply for them.
b) Ease to use: The users do not need to read too much information and just need to follow the step by step and they will become a member and start their business.
c) Ease to make Money: Through Fiverr, the creating business becomes easier way for the people who want to make money online.
d) Free services: The users do not have to pay anything for the services and they just need to pay for their commission so they can get their business started.
e) Convenient payment systems: Fiverr will provide convenient payment systems such as PayPal, credit cards, bank transfer and even wire transfers.
f) Free marketing platform: The users can promote their products or services through Fiverr blog or videos without paying a single cent.
g) Easy to start a business: Fiverr is a free platform for creating a business and just need to sign up and the users will become a member.
i) Massive community: It is used by 3.42 million buyers each year worldwide.
j) Large variety of services: The freelancers offer services in various areas such as; writing, translation, video editing, web design and development…etc.
k) Good reputation: Fiverr has a good reputation that is why there are millions of users joining this platform every year.
j) High percentage of satisfied clients: The clients are satisfied with the services offered on Fiverr.
• Fiverr Weaknesses
a) Quality of the service provided by the freelancers: The freelancers will provide different quality of services to the users depending on what they want.
b) Cost and quality: The users will also need to consider the cost and quality of the services provided by the freelancers.
c) Lack of control: Although Fiverr ensures to provide high quality service; the users do not have much control over what type of service they will receive.
d) Expensive rates for additional services: The users need to pay extra charges if they want to get some additional services such as; web design, SEO services, business cards etc.
e) Competition: Fiverr faces competition with other platforms such as Upwork, Freelancer and Guru.
f) Difficult to work with buyers: The buyers are often difficult to work with, because they often have different expectations or even refuse to pay for the service.
g) Buyers aren’t verified: It is hard for users to know which buyers are frauds and which one are not frauds.
h) Unethical sellers: Some sellers have been considered unethical by their customers.
i) Fraudulent transactions: When fraud takes place, the reputation of the platform may be affected.
• Fiverr Opportunities
a) Expand market globally: Fiverr can expand its market globally because there are many people around the world who want to make money online.
b) Increase sales: Fiverr can also increase their sales by increasing the availability of the freelancers.
c) Develop a mobile app: Fiverr can develop a mobile app for its users so they can access the service from anywhere at any time.
d) Invest in social media marketing: Fiverr can invest in social media marketing so they will be able to increase their customer base.
e) Develop new services: Fiverr can also consider developing new services so they will be able to attract more customers.
f) Expand business: If the business expands, the demand for the services will also increase because more customers will feel comfortable with the services provided by Fiverr
g) Increase Customer base: Fiverr can also increase their customer base by bringing more users on their platform.
h) Expand their marketing campaign: Fiverr can also expand their marketing campaign to increase the number of visitors on their site.
j) Bring on more services: If Fiverr introduces more services, it would increase the demand for those services and the company’s business will be become a profit making business.
i) Increase sales: The sales will be increased if Fiverr comes up with some new and innovative ideas.
i) Expanding in international markets: Fiverr can expand in international markets if they invest in advertisement to attract more buyers and sellers.
• Fiverr Threats
a) Low demand: If there is a low demand for the freelancer services, the business will lose money and become a loss making business.
b) Increase competition: If the competitors have the same or similar services as them, they will have to work harder to gain their market share.
c) Low customer retention: The business will have a low customer retention if the competitors are providing the same or similar services for free.
d) Low sales: The business will have low sales if there is a low demand for the service.
e) High cost of operation: If there are lots of competitors, it will be hard to gain their market share so there are high costs of operation.
f) High expenses: There are high operational expenses, because there are lots of competitors in the market.
8. Fiverr FAQs
Why Fiverr is good or bad?
a) Good: Fiverr is a reliable and reliable website and works well and there is no shortage of Fiverr services.
b) Bad: The problem is that the business model of Fiverr is not so good, because of this reason the price of the service charges are too high.
Is Fiverr makes money through advertisement?
Yes, Fiverr makes money through advertising because firstly, Fiverr is an online platform that allows users to search for services.
It also helps other companies to advertise their products or services. If the user needs any service, they can turn to Fiverr and order for it.
What are the key competitors of Fiverr?
a) Upwork: Upwork is another competitor of Fiverr, because they also provide the same services as Fiverr. They also provide their service for free and allow their users to find other workers and freelancers for different types of projects at the same time.
b) Unbounce: Unbounce is another competitor of Fiverr, because they are also providing the same services as Fiverr.
What Does It Offer?
It offers a variety of services to help you grow your business.
What Does It Offer?
Fiverr offers services such as getting technical help, logo design, video creation, blogs, writing articles and etc.
Is Upwork better than Fiverr?
UPWORK IS NOT BETTER THAN Fiverr because it is also a website that offers the same services as Fiverr and it is an online platform that allows users to find and find other workers and freelancers for different types of projects.
What does Fiverr offer?
Fiverr offers many benefits including;
a) Fiverr offers a variety of services such as; logo design, video creation, blogging, copywriting and more.
b) You can order your desired logo and Fiverr will create it for you.
c) They provide the best services at an affordable price.
d) Fiverr offers customer satisfaction and value for money.
e) Fiverr offers many payment options including PayPal, Visa, MasterCard, Payoneer, Bank Transfer etc.
What is the best way to work with Fiverr?
The best way to work with Fiverr is to place an order for the services you want from Fiverr, secondly, contact the service provider.
The service provider will give you a good customer support and he/she will guide you through every step of your order.
Is Fiverr legit for You tube?
Yes, Fiverr is legit for creating YouTube videos because the service provider will create a good and professional video.
Is it worth to work with Fiverr?
Working with Fiverr is worth it because you will get good services and there is no shortage of service providers.
If you order for a service, Fiverr will assign a specialist who will assist you and guide you through every step of the order and provide quality services to their customers.
Which Country owns Fiverr?
Fiverr is registered and based in the Tel Aviv in Israel. It was started and founded by Micha Kaufman and Shai Wininger in 2010.
What are the easiest jobs in Fiverr?
The easiest job in Fiverr is to get technical help because it requires only task.
How much does Fiverr charge?
Fiverr charges from $5 for every service but depends on the order.
Is it easy to get jobs on Fiverr?
Yes, it is easy to get jobs on Fiverr because there are a lot of service providers who provide their services for a small fee. You can place an order for the service you want and get your order door by an expert.
What is Fiverr refund policy?
Fiverr provides a money back guarantee for their customers if they are not satisfied with their service or product, they can request a refund from Fiverr.
Is it easy to get jobs on Fiverr?
Yes it is very easy to get job orders on Fiverr because it is an online platform that allows users to find and find other workers and freelancers for different types of projects.
What is a good gig on Fiverr?
You can get a lot of benefits from doing work for you on Fiverr, because they will make sure that the service provider will guide you through every step of your order until the work is delivered by the seller.
Is Fiverr good for beginners?
Yes, Fiverr is good for beginners because it will help you to earn some extra money. It is an online platform that allows you to order for your desired service and get your order delivered on stated timelines.
What should you to know before working with Fiverr?
The best way to work with Fiverr, firstly you post a gig on the site and have a profile of yourself.