“We believe we will be the Amazon of services.” In a 2017 interview with The Times of Israel *, Micha Kaufman, co-founder and CEO of Fiverr, discusses the guiding principle of its platform. Much like the e-commerce giant, it’s about making buying and selling an online service as easy as making a transaction on Amazon.
From this perspective, the company debuted in 2010. Most of the exchange between companies and freelancers takes place offline. It is the principle of an exchange around a coffee to determine the future mission that prevails. This process may work for some, but it is still very time consuming and does not guarantee that you will find the right person. While online retailing with giants like eBay or Amazon is on the rise, there is no equivalent for the freelance market.
Fiverr’s approach is based on a Service-as-a-Product (SaaP) model that fundamentally transforms the traditional freelance model into an e-commerce experience.
How did Fiverr develop its offering?
Fiverr therefore wants to fill this vacancy. The startup then starts remotely and has to convince freelancers and employers to adopt the reflex of creating their working relationships online. The beginnings are not necessarily obvious, but the founders are sure of them. And for good reason: The freelancer market is growing rapidly and the youngest who were born with the Internet are being seduced by this new form of organization.
The rest is a series of achievements that would not have been possible without the work of the Fiverr teams. Over time, the platform is perfected by relying on its algorithms that make it possible to refine the recommendations and lists of services available.
Everyone wins with this system. Freelancers no longer have to waste time acquiring companies. For their part, companies gain security and can work with professionals whose talents have already been recognized in the past.
This alchemy eventually paid off. While Fiverr was originally primarily known for offering very attractive prices, a real upward trend has emerged from $ 5. This was achieved by adding the Fiverr Pro offering, which provides access to talent selected based on their recognized and recognized expertise. Only 1% of the candidates manage to achieve this prestigious status, ie if this procedure is serious.
Fiverr Business is also intended for companies that want to go even further on the platform. You thus have a tool with which you can facilitate collaboration and personalized administration.
Building on these strengths, Fiverr has grown steadily over time and is now listed on NASDAQ. The company now has 240,000 active self-employed people and 3.4 million buyers are also registered on the website, 85% of them SMEs. The services offered are becoming more numerous and 500 categories are listed. To name just the main ones, Fiverr is very strong in graphics, digital marketing, writing and translating, video and animation, programming, and even SEO.
How will Fiverr continue to grow?
The latest figures released by the market confirm this upward trend. The average spend per shopper fell from $ 119 in 2017 to $ 205 in 2020. Last year, many businesses found refuge in Fiverr as well. Thus 45% of the transactions were carried out by new customers. After all, that good news is reflected in the company’s revenue, which rose from $ 52 million in 2017 to $ 190 million last year.
Far from getting intoxicated by this great advance, Fiverr now wants to continue this winning strategy. In order to be successful, several axes are therefore pursued. It is the same with international expansion. The site is now available in English, Spanish, German, Portuguese, Dutch and, since 2020, in French.
The platform also offers freelancers new advertising tools to give them visibility. Fiverr is also doing everything possible to develop its catalog, which is a great competitive advantage in its market. So, in 2020, new services such as the design of 3D clothes or jewelry appeared.
After all, the company that has become a global player in this sector continues to rely heavily on technologies that enable it to make a difference. Fiverr, for example, is doing everything it can to reduce the loading time of its homepage on the web and mobile devices. A seemingly simple measure, but one that has reduced the bounce rate on the online marketplace.
Over time, Fiverr has drastically diversified its activities by introducing BtoB (companies, agencies, entrepreneurs, etc.)
* The relevant article article