Fiverr has become really competitive lately.
As the site grows, so do the number of Fiverr sellers. A lot of new Fiverr sellers are struggling to make their mark and most recently, a lot of you have come to me looking for help or some guidance on what to do.
Is Fiverr becoming a much more competitive marketplace that it even has affected me? Well, yes! But is that a bad thing? No.
As there are more Fiverr sellers, that means more people need to compete on quality of their services and overdelivering to win over more buyers. If we somehow leverage this, we can make a lot of money.
That’s when a few months ago, I began exploring Fiverr arbitrage.
What is arbitrage? Technically, it is the asymmetry of information and taking advantage of that. But much more simply, in Fiverr’s case, it is taking in-demand services on Fiverr, finding a client that is willing to pay a lot more (up to 20x more) to get this service performed, and then subcontracting the work out to a Fiverr seller.
So here, the asymmetry of information is that most people don’t know about Fiverr, or don’t know how good the quality of work can be on Fiverr, and then finding those people, and act as a service broker.
This also answers the first question a lot of people ask when it comes to being a Fiverr “middleman”. Why would someone pay $100 for a service they can find on Fiverr for $5? Again most people don’t know about Fiverr or have used it to know enough about it and the services offered there.
The next question I often get is “well, isn’t this risky? what if the Fiverr seller flakes or delivers sub-par work?”. This is extremely low risk when you consider you’re only spending around $5 to make substantial profit. Plus, most Fiverr sellers allow revisions which give you the opportunity to ensure your client is completely satisfied.
“unless clearly stated otherwise in the Gig description text, when the work is delivered, the buyer is granted all intellectual property rights, including but not limited to, copyrights for the work delivered from the seller and the seller waives any and all moral rights therein.”
So, while I was in the lab trying to this, it worked really well for me. I already have a lot of experience subcontracting out work since I work as a full-time web design freelancer, but I’ve never really used Fiverr to subcontract work up until a few months ago.
In the beginning, it was a lot of trial and error. However, in the last few months, I’ve been able to consistently act as a middleman for services that I sold for around $80-$100 and only paid $5-$25 for on Fiverr. Not too shabby, right?
So, I put together everything step-by-step into my new book, Fiverr Middleman:
Fiverr Middleman goes over, from beginning to end, exactly how I find a client, how I find the perfect seller to subcontract the work to and how to invoice and close the client. I go over exactly what services I sold and recommend acting as a middleman for, and I even recommend some free tools to help make this process not only a lot easier, but make you look more professional.
Now, this isn’t just some money making method. This is an actual, real, sustainable business. I freelance from home full-time. This is something you can start as a side-business and eventually grow if you put in the time and effort.
Lastly, the best part about this book is that I even include the exact email templates to send when first contacting a potential client, giving them a quote and even closing them. These are the actual emails I send out to my potential clients everyday that have helped build my successful freelancing business. I also throw in the actual contract I make all my clients agree to before starting the job or project.
Check it out, I’m really excited to share it with you guys and I think it’s a much more practical and profitable approach to Fiverr.