Before I present my solution to Fiverr's problem, I want to say that if it was unintentional, then it is forgivable, but only if they rectify it. And, for those who still don't grasp the enormity of this problem, here is one more go at it in a short, point-by-point explanation.
- Merchants (you, and 1000s of others) sign up to perform like a pack mule for $5 per event;
- You make a sale (yay!), and only THEN do you find out that you must have a $40 balance to withdraw;
- You attempt to make 7 more sales to reach the $40 payout minimum;
- Those "1000s of others" are trying to make their 1st-8th sales, too.
- Whoops, 1000s of more people are signing up because you, and others, are raving about the coolness of fiverr.com (I'll explain this phenomenon in a moment);
- Now many MORE 1000s are trying to make their first sale, while MANY 1000s are STILL trying to make 7 more sales in order to reach Fiverr's payout requirement;
- Meanwhile, more people are signing up each day and your offer slips slowly away into the depths of the Fiverr ad abyss.
- Return to point 4 forever and pray you reach $40 or you get none of it.
Most of the merchants on Fiverr are not skilled marketers. They have some kind of TALENT but it is not in marketing. So when something like Fiverr.com arrives on the scene, these talented individuals (mixed with a small percentage of clowns trying to exploit the opportunity) eagerly dive in hoping to get some exposure, and/or junior-league bragging rights to their friends.
Because they are not marketers, they tell EVERYONE about how cool Fiverr is and, guess what? By telling everyone, they just increased their competition ten-fold. It's a good bet that many of the people who visit fiverr are going there because they want to see what cool things they can get for $5 - period, so ANY exposure they give Fiverr waters down the opportunity for them.
So, unwittingly, this mix of talented people, and their clownish counterparts, increase their competition and further erode any possibility of reaching a payout minimum.
It's rather simple, actually. Since Fiverr takes $1 from every sale you make (something else that isn't readily apparent before you join as a merchant), it adds up to Fiverr keeping 1 out of every 5 sales you make. With the money they have made so far, it should be no problem for them to develop a script that pays Fiverr for the first of every 5 sales you make. Fiverr gets paid directly for the first, then YOUR paypal address should be rotated in for the next 4 sales.... rinse, repeat.
Is there a possible risk that the merchant could take a few sales and not come through? Sure, however...
- That's a risk that FIVERR should shoulder, or solve, rather than coming up with a payout requirement that's going to leave most merchants with 1-7 sales, uncompensated for their work;
- The disgruntled buyer can request a paypal chargeback. No legitimate paypal user wants that nonsense on their paypal account;
- If a merchant gets X complaints of non-performance, Fiverr simply removes them.
Please, someone, tell me how most of the people who make a sale on Fiverr aren't going to end up a Loserr?