Business
Fiverr’s Stock Value Took a Plunge, Here’s Why
You’re a freelancer in a booming gig economy increasingly under scrutiny. Is Fiverr right for you?
COVID-19 shook up our economy. That’s no secret. Employees relocated to their home offices, many were laid off entirely, and some took the opportunity to explore a new career. For some, freelancing was the stepping stone for millions curious about embarking on that personal journey.
If you work freelance, you’ve likely heard of Fiverr. The company is known for connecting freelancers with projects and the benefits one might reap. For someone about to dive into the scary world of freelancing, Fiverr sounds like a great place to start.
What Does This Stock Dip Mean
Unfortunately, the “safe bet” has had a bit of a tumble of 24.8% in the stock market lately. While some consider the dip a minor hiccup, it speaks to larger unreliability for freelancers. Whom the company relies on entirely. As people head back to work, they need freelancers less.
As we slowly recover from this pandemic, employees are moving back to work and freelance workers are taking the hit. Few people are relying on remote workers. For someone exploring freelancing as a new career option, this news should be waving a bright neon red flag.
The 24.8% dip in Fiverr’s stock value, they claim, is reflective of the world reopening. There’s a problem with that assessment. It ignores the possibility that freelancers and buyers may be transitioning to a platform that is more secure and reliable.
By saying, “it’s just people going outside,” Fiverr can reassure their stockholders that the company will bounce back a-ok. There has been, in fact, growth within the company itself by as much as 60%. If you’re looking for a sweet stock tip, it might be time to buy stock in Fiverr right now.
What Fiverr Offers
The top 10 highest paid side hustles in the United States on Fiverr are:
- Website Design – $700
- Social Media Manager – $675
- Proofreading and Editing – $660
- CV, Cover Letter, and Resume Building – $600
- Website Building – $580
- 3D and 2D Modeling – $550
- Business Consulting – $500
- Social Media Advertising – $500
- Graphic Design – $500
- Presentation – $450
Those numbers are the max price earned per job. Sounds pretty okay, right? Well, those are not guaranteed rates. The struggle of freelance is the unreliability of work. You, as a freelancer, are responsible for maintaining your own hours, keeping up business, and guaranteeing your own salary. For some, it’s nice to be your own boss. For others, it can be difficult to maintain that level of consistency. And that’s where Fiverr is supposed to make things easier for you.
Gig Economies Today
Gig economies are the sexy new thing to talk about. Companies like Fiverr, Uber, Lyft, and more love using freelancers because they legally do not count as employees. No health insurance, no benefits, no guaranteed hours. Basically, these companies reap all the benefits and return very little, or nothing, to the workers they rely on to exist.
As gig economy jobs are coming under more intense scrutiny, a person transitioning their career from one to the next and use freelance as the in-between may find themselves in the crosshairs.
So, in order to recover from this dip, Fiverr launched a Seller Plus program. Instead of being guaranteed work, freelancers can pay $29 a month to access:
- Dedicated Success Manager
- Faster Payment Clearance
- Priority Access to Growth Programs
- Priority Support
- Advanced Analytics
- Advanced Customer Engagement Tools
- Exclusive Events and Educational Content
If you want Fiverr to look out for you, you need to pay them. They need you in order to operate, but you have to pay them in order to safeguard your new career as a freelancer.
It seems that Fiverr’s mission “to change how the world works together” is actually a far more familiar and historically consistent “rely on the workers but keep all the benefits” model that has sustained billionaires for decades.
Fiverr and Its Freelancers
Fiverr doesn’t make anything but connections. You can think of them as a middle man. Someone to hook you up with work for a cut of the action. While it may seem a little unfair, the fee can be worth the price of reducing the hunt for projects.
This would all be well and good if Fiverr had a good track record for protecting its freelancers. But, for a company that needs freelancers in order to exist, they sure seem to have more interest in protecting the buyers than defending its freelancers.
Reviews across the board say similar things: Fiverr is good for buyers, not so great for sellers. The word “scam” comes up more often than not. Which is another bright neon red flag, except it’s now on fire.
Fiverr’s Freelancers Review
“Exceptionally awful seller policy. An astonishing amount of inconsiderate buyers who can freely get a refund while the seller gets nothing for their work if a cancellation is requested – ranging from reason as “I placed the order on accident” to crude insults.”
“System is rigged to take and hold onto your money. Both buyers and sellers pay high fees. Buyers cannot withdraw money if a job gets cancelled and refunded. Sellers have to wait two weeks to receive payments for completed work. It’s 2020, this is not a technical limitation. It’s a very poor ethics decision. Would leave a zero star rating if I could.”
“Just read the rest of the reviews. I was booted from the platform because a buyer (they told me they were going to do this) threatened me with negative reviews if I wouldn’t do more work. When I refused to do more for them than I agreed to initially they flagged my account with customer service and I was suspended with no warning, no explanation, and no due process. Then my funds were held hostage for 90 days with no possibility of withdrawal.”
What’s The Solution?
Unfortunately, stock market dips reflect on the company’s value to shareholders rather than a healthy work environment for its freelancers.
As mentioned above, governments both internationally and domestically are examining gig economies much more closely. The days of Fiverr, Uber, Lyft, and others using their freelancers or independent contractors as cannon fodder could be limited.
Freelance is a tough gig, no matter what industry you find yourself in. You may be your own boss, but there’s no guarantee of work. You may have the freedom to set your own hours and choose your own clients, but reality sets in.
The freedom that comes with freelancing comes with a price. While Fiverr blames vaccines for its significant stock dip of 24.8%, they’re ignoring their own underlying issue by leaving their freelancers to twist in the wind.
Fiverr seems to forget, without freelancers, they have no business. Fiverr doesn’t make anything. Freelancers use Fiverr to collect clients and gather projects, but Fiverr isn’t the only option out there. If a freelancer has an opportunity to work without worrying about being screwed by a client or middleman, why wouldn’t they take it?
What Are Other Options?
For freelancers looking to escape or avoid the risky cesspool that is Fiverr, there is plenty to choose from. Such as:
- Upwork
- 99Designs
- Guru
- Toptal
- PeoplePerHour
- Freelancer
- Truelancer
- Outsourcely
There are more options out there, including joining a company where you can have established hours, guaranteed work, and benefits. You may not be your own boss, but you’ll be able to keep the lights on at home.
In Conclusion…
Fiverr’s stock had a not-so-insignificant dip of 24.8%, they blamed vaccines, and their freelancers are still getting screwed by abusive buyers that Fiverr allows getting away with theft.
If you’re a freelancer and you’re taking the opportunity to explore a new career, Fiverr is probably not going to be a safe bet. There is too high a risk of scam, and there’s no guarantee that Fiverr will look out for their own freelancers. It’s like a sheep joining a flock where the shepherd lets a wolf in for a fee.
For freelancers, there are options out there. Freelancing ain’t easy, but it doesn’t have to be as difficult as Fiverr allows it to be. If this company continues to believe in its success at the expense of its own freelancers, there’s a fairly good chance that there will be more stock dips in the future.
That is unless, of course, Fiverr decides to correct this offensive mistake.