More workers are participating in the “gig economy” than ever before. Fiverr, one of the leaders in this economy, assists contract employees by providing a platform to sell their services from. The Israeli-based online marketplace has developed a mechanism to link contract workers with new clientele, all for a fixed, affordable price. Aligned with its name, Fiverr launched as a way to help people buy and sell digital services for as low as five dollars; this model has evolved throughout time. Now, the company is offering subscriptions for customers seeking recurring, professional expertise.
As gig work becomes increasingly popular, Fiverr is prioritizing its users’ lucrative needs. The company’s adoption of a subscription model will produce a recurring revenue stream for freelancers. This model benefits both parties, as gig workers look to predict their monthly income while Fiverr gets to expand its customer base.
Recurring Revenue for Freelance Workers Through Subscription
Fiverr is adding additional resources to keep up with the ever-changing freelance landscape. Initially, the company set forth “one-time or per-project-basis” payment structures that served as a template for its business transactions. Now, the site allows customers to purchase single-use services or subscription packages ranging from three to six months.
With the addition of long-term contracts, freelancers can better predict their monthly income. Having a recurring revenue stream could alleviate financial stress and give gig workers more leeway to budget their expenses. It will also grant them more autonomy. “Subscriptions give our community members control over how they want to work together and empowers them to work in ways that best suit their needs,” CEO Micha Kaufman said.
Expanding Fiverr’s Customer Base
This subscription service would target projects that require more time and effort to complete. Fiverr’s subscription options are eligible for services that exceed $10 and have an allotted 30-day completion time. Thus, this model was curated to accommodate ongoing gigs that operate on a month-to-month basis— i.e. marketing, web design, and Search Engine Optimization (SEO) services. The company predicts that the two subscription packages will attract a new clientele that seeks these ongoing services.
Fiverr asserts that in purchasing subscriptions, buyers will “secure the sellers [they] trust and create long-lasting relationships.” This subscription model will give freelancers the ability to establish durable relationships with their customers.
Setting up a Subscription Model for Success
Fiverr’s recent $11.3 billion evaluation and acquisition of the creative talent platform ‘Working Not Working’ are strong indicators of the company’s dominance within the freelance space. The shift to a subscription model will ensure the company’s growth with long-term contracts that generate recurring revenue and a strong customer base.
Fiverr’s recent launch of ‘Milestones’ allows freelancers to take on larger projects while getting paid as they go. This feature may revolutionize how freelancers and buyers interact in a long-term project setting through the system. By sorting the project’s timeline in checkpoints, Fiverr can hold sellers accountable for their services, provide accurate project updates, and ensure timely payments. Moving forward, Fiverr’s primary aim of focus will be these very lucrative, months-long projects.
Its new subscription model enables the company to satisfy both gig workers and the customers looking for them. As many tech companies continue to add subscription models, Fiverr is also adapting with contemporary methods to stay competitive while increasing customer retention and revenue.