If you’re just starting out in the online game, Fiverr is a great place to make some side cash and gain valuable experience. In this video, I give you an overview of how Fiverr works and how to use it for maximum benefit.
Matt Forney: Hello. I’m Matt Forney and today I want to talk a bit more about making money on Fiverr. Now, for those of you who don’t know what Fiverr is, it’s a website/repository for freelancers, where you can pay people to do various tasks for you for five dollars. Whatever task it might be, have a portrait drawn, write a song, whatever. You can also sell services for five dollars a pop.
Now, most people are probably thinking, “Why would I waste time only working for 5 dollars a pop?” I mean, five dollars is nothing unless you live in the third world. I live in New York; five dollars won’t even get you a Big Mac meal here any more. What you’re missing is that, well, number one, small money leads to big money. You know, 5 times 5 is 25; 25 times 4 is 100. So, basically, small amounts of money add up to bigger amounts. And number two, what if you could get that money without doing too much work for it? I mean, working for maybe ten, twenty minutes, another five bucks? In that case, why not go for it?
Now, even with this, I don’t recommend Fiverr as the longest, long-term way to make money, because the site has its own limitations, but if you’re just starting out in this whole making money online thing, Fiverr is a great place to earn some side cash and get some experience that you can use to pile into more lucrative endeavors when you move on.
Now, the most important thing you need to understand about working with Fiverr, the most important thing to understand about labor in general is that labor is a commodity like anything else. Like something you purchase at the store, labor is a product like that, and like those commodities it’s subject to the economic laws of supply and demand.
Now, the price of labor is wages. Someone hires you to do a task, you know, a boss hires you for a job. The wage that he pays you is the price he’s paying for your labor, okay. Now, and like I said, like every other commodity wages are subject to the laws of supply and demand. Now, again, if you’re unfamiliar with this concept, basically supply and demand are what drive the costs of commodities. Now, when supply is high but demand is low for a particular product or service, the price will be low; but if it’s reversed, supply is low, demand is high, then the price will be high. And, again, this applies to wages as much as anything else.
The reason why I say a nuclear physicist makes more money than a McDonald’s cook is because there aren’t that many nuclear physicists, and because becoming a nuclear physicist requires years of education and training and a good deal of native intelligence. Whereas any schlep off the street can flip burgers at McDonald’s, and there’s a lot of idiot schleps out there. Therefore, McDonald’s can get away with paying its workers minimum wage because that’s all their labor is worth.
Now, you can add some external factors like labor unions or cartels or price embargos that would affect wages. For example, like I said, labor unions can help raise the price of labor in a particular field, market or whatever, but at the end of the day you cannot escape the laws of supply and demand, even laborers can’t.
Now, to give you a broader example of this in action, last November around Thanksgiving there was this story going around about a Walmart in Ohio. I can’t remember where it was; I think it was Cleveland—Canton, that’s it. Canton, Ohio. There was a Walmart in Canton, Ohio, that had a canned food drive going for its own employees; employees who couldn’t afford to put food on the table for Thanksgiving. I don’t know whether it was being pitched to customers of Walmart or to fellow employees or something, but the idea here is quite simply this: Walmart, or at least Walmart in Ohio, pays its workers so poorly that they can’t afford to sustain themselves. Now, that’s because labor in Ohio is so plentiful and so cheap that Walmart can get away with paying the minimum wage, because, again, that’s all they’re worth. Now, I’m not trying to make a political point out of this, this is just reality.
Now, to contrast, a couple years ago I was living and working in the oil fields in North Dakota where labor is incredibly scarce. This is the no-man’s land between North Dakota, Montana, and the Canadian border. It’s like nobody’s up there and it’s just growing at an exponential rate.
Labor is so scarce there that the employers are absolutely screaming for work. The Walmart in Williston, North Dakota, the epicenter of the oil boom, is so desperate for workers, or they were so desperate when I was there, that they were not only paying their employees $21 an hour, they were even paying for their hotel rooms. Because Williston at the time, I think it still is, there was a severe housing shortage. There simply weren’t enough apartments or hotel rooms to go around, so a lot of the workers coming to Williston were living out of their cars. So, if you went to work for the Walmart in Williston, North Dakota, not only were you being paid $21 an hour, you got your own hotel room on top of it so you could sleep in a nice place and shower without having to worry about the cold.
And all the other so-called menial jobs in Williston paid similar rates. Even the McDonald’s there paid something like $13 an hour. And, again, that’s because of supply and demand; there are so few laborers in North Dakota that the employers have to raise their wages just to attract workers.
Now, what does this have to do with Fiverr? It’s quite simple. When you’re working on Fiverr you’re the economic equivalent of the workers at the Ohio Walmart, because there are a lot of freelancers on Fiverr and there are a lot of people, guys and girls, offering similar services. So, basically, you have some real stiff competition.
Now, what this means for you is that if you have a really specialized skill, something that requires a lot of work to put together and a lot of time on your part and can command a relatively high rate, you don’t want to sell it on Fiverr, for the simple reason that you’re not going to make much of anything.
Everything you do on Fiverr should be something that you can get done in ten, twenty minutes tops, maybe half an hour, okay. If you spend more than half an hour working on something for a Fiverr client, you’re wasting your time. At that point you might as well just go down to McDonald’s and fill out an application, you’ll be making more money per hour then.
Basically, when it comes to Fiverr, when it comes to making money on Fiverr, everything you do there should be simple. Everything there should be something that is very easy to do, is not very time intensive, not very work intensive. Something you just [snap snap] like that.
Now, I’ve written a book about making money on Fiverr, it’s called Writing for Peanuts. Now, it focuses a lot around writing on Fiverr, selling writing gigs, because writing is my specialty as a freelancer. I also have a lot of information in there on how you can craft your own gigs to come up with and make money off of. The book is available in paperback, e-book formats; it’s very short, about fifty, sixty pages. You can get it by going to MattForneyBooks.com, or you could just click the link in the description. It’s also available on Amazon, Barnes & Noble, and other fine book stores, pretty much anywhere. But again, like I said, if you’re interested in making money on Fiverr I would recommend going to my book as the place to start.
Like I said before, Fiverr is not something you want to do in the long term, but if you want to get started with making money online, doing something that’s relatively easy, simple, doesn’t require a whole lot of experience, and which you can use to get valuable experience to leapfrog onto other experiences, Fiverr is a really good opportunity for that. You’re not going to get rich off it, but you will get some money and you will get experience that will help you in future endeavors. I don’t work on Fiverr any more, but all of my Fiverr experience has helped me make money in other writing endeavors that pay a hell of a lot more. So check that out if you’re interested.
Illegitimi non carborundum, don’t let the bastards grind you down. I’m Matt Forney and I am out.
If you liked this post then you’ll like Writing for Peanuts, my 46-page book that teaches you how to make money on Fiverr. It contains tips on creating gigs, advice on getting people to buy your gigs, a guide on how to write SEO articles for money and more. Click here to learn more.