In a country full of high costs and low pay, Fiverr.com has become known as a small business hero in less than four years since its inception. If you're not familiar with the website or the concept, Fiverr opened its doors to provide a web portal that could offer inexpensive services for businesses and consumers, while providing work for talented people around the globe.
And within four short years, Fiverr has redesigned the website and introduced its mobile application to keep up with this fast-growing industry. What may have started as a site for buying and selling five dollar gigs, has evolved into being a major player in the global outsourcing industry.
Founders Micha Kaufman and Shai Wininger now employ a group of 90 with offices in New York and Tel Aviv which handles gigs from over 120 categories and in more than 196 countries. What a small business inspiration.
Backed by Accel Partners and Bessemer Venture Partners, it's pretty clear the investors and founders hit the jackpot, particularly now that they are one of the leaders in the industry. According to Alexa.com, Fiverr is now one of the top 150 websites in the world.
We love success stories and dropped in to talk with Micha Kaufman about the current status and future plans of Fiverr.com.
Faleris: Fiverr's growth has been stellar. Is that what prompted the redesign?
Kaufman: The marketplace has grown in its first two years from a small startup to one of the world’s top 150 sites, hosting over 3.5 million services. It was time for it to evolve and provide its users with an experience matching its size and give the best exposure the talent offered on Fiverr deserves.
Since we launched the new site, we have seen over 50% increase in demand from small & medium size businesses who are discovering the value Fiverr can play in their everyday needs.
Faleris: I believe the redesign was primarily intended to help vendors sell higher ticket services. Did the average ticket price change?
Kaufman: Yes, significantly. In fact, 62% of current transactions on our platform are more than $5.
Faleris: Overall, what changes have you seen in outsourcing this past year?
Kaufman: Outsourcing is becoming mainstream. The term ‘outsourcing’ is no longer a one way street in which developing countries are on the supply side and western countries are on the demand side, but rather a bi-directional eco system that facilitates the global share of talent.
This is being translated into exceptional success stories, which in this economy gives hope to so many. We live in an extraordinary time, where it’s possible to make a living out of something you are both good at and passionate about.
Faleris: There is a proliferation of outsourcing sites - most of them are segmenting by industry. Is this effecting fiverr.com?
Kaufman: Actually, the multiple vertical markets are a great way to validate the size of a market that on Fiverr only represents one category out of more than a 100 listed. Fiverr’s strength is that much like eBay or Amazon, it offers a one-stop solution for our customers.
For example, people looking for logo design, translation, and writing services can find everything they need right on our platform. People are very comfortable transacting in one place that they trust where they can find everything, and we believe Fiverr is the global marketplace to meet these needs.
Faleris: Since there are vendors from all over the world, do you feel this helps or hurts vendors in the U.S.?
Kaufman: The market is so big, and the talent that the American vendors have been showing is so broad, that we actually feel that it’s to a point that it’s not even perceptible.
Faleris: What are your projections and visions for Fiverr in the future?
Kaufman: The company is focused on its rapid growth and marketplace expansion. We seek to expand our category base, increase our market share in each of the markets we cover, increase the scope of products offered on Fiverr, and broaden our global reach.