What's the Deal with Fiverr?

Having launched not too long ago in 2010, Fiverr is an online marketplace that offers a wide variety of products and services starting at just $5. Referred to as Gigs, these five-dollar jobs can be created by sellers or purchased by buyers. In other words, everyone has the opportunity to make a bit of extra cash.

You may be wondering, how could someone possibly earn any form of significant revenue by working for a measly five bucks? That's an honest question, and that's where Gig Extras come in. Gig Extras are additional services that apply to the original Gig, usually sold for $5 each.

A common example is rushed ordering. Let's say you order a logo design for $5, but you need it completed within 48 hours. The seller can offer faster delivery for an additional $5, bringing the total amount to $10 — and you're still barely spending any money.

While Fiverr is a great concept that clearly works very well, the site is often criticized for offering services at such low amounts. This is especially apparent when compared to professionals who have been offering similar services for prices that have always been considered standard in the industry.

Graphic design is a great example of this. Is an individual more likely to pay $5 for a logo design or $500? Anyone who is on a tight budget will be easily tempted by the amount that is significantly lower.

See the problem here? While Fiverr isn't exactly putting professionals out of jobs, it's certainly a valid concern worth paying attention to — and it's only going to get worse as more people discover the platform.

Love it or hate it, Fiverr is not going anywhere for a while. Whether you're a buyer or seller, it's a service that seems to offer something for everyone.