Fiverr’s New Promoted Gig Algorithm
Is it worse for freelancers?
In July of 2021, I published an article about Fiverr’s Promoted Gigs program in The Startup. In that article, I discuss the benefits of using Fiverr’s promoted gigs program to gain interest and views on your gigs that otherwise would have been ignored.
However, Fiverr has since made a change to its promotional algorithms. Now calling it their new “Smart Algorithm,” Fiverr has begun suggesting to gig owners the importance of a no cap CPC (Cost-Per-Click) limit.
Fiverr now encourages you to take off the CPC cap and spend as much as possible to give your gigs a “competitive edge,” but $1.69 is a lot to spend per click.
On top of their 20% take, Fiverr now wants you to pay them a no-cap CPC to get buyers to find you, or else you’ll be banished to the bottom in every search result.
Well, I refuse.
$0.80 is my maximum CPC limit. It has worked for me so far, and I don’t want anything higher for fear of spending more than I earn. So, how does my technique stack up in the face of the new gig algorithm?
Let’s take a walk:
An Objective Look at the Numbers:
Something to note about this chart: I went on hiatus for most of December, leading to its smaller earnings and stats due to the holidays.
Earnings will usually outweigh expenses when you price your gigs well. Because my gigs average at a minimum of $35/sale, I usually quickly earn back my expenses. However, for $5 gigs, the return on investment (ROI) is much smaller.
In November, I averaged about $0.50/click with far more engagement than the $0.80 I now pay. Impressions were WAY up, as well as clicks. Even with the smaller CPC, I had a great month of earnings — my best out of the four above. At that CPC, earning was easier at a lower price.
In December, I was on holiday hiatus, leading to the above numbers.
In January, at my $0.80 price, I came off holiday hiatus and started being more active on the site. Even with added gruntwork on my part, impressions greatly dropped, but earnings stayed just about the same as November.
This came from repeat buyers due to my reaching out to previous clients.
February ROI at $0.80 CPC
Between January 30th, 22, and February 28th, 2022, I did not succumb to Fiverr’s requests to increase my daily budget or CPC limit.
Instead, I have stuck with my $0.80 price at a $2-$5/daily budget. I will sometimes increase or lower the daily budget if I’ve had a good week and wouldn’t mind spending a little more to get more sales.
Since implementing the new Smart Algorithm, my influx of business has been a little bit slower. As you can see from the chart, impressions skyrocketed, but clicks were far fewer than before.
Even with almost double January’s impressions of my gigs, the clicks and earnings were far fewer. Furthermore, I spent $14 promoting my gigs in February but only $13 in January.
Even though it was only a dollar difference on promotions, I earned $60 less. I still come out in profits, but it is clear that the algorithm’s ability to help me convert clicks into sales has dropped.
Final Thoughts
My first impressions of this new algorithm are not great.
Being intimidated into pricing promotions higher can trick new freelancers into spending more than they need to, and it also increases how much money you lose to Fiverr per sale.
One month isn’t long enough to test out Fiverr’s new CPC recommendations with full results, but I can honestly say that new gig creators will find it harder to compete with wealthier earners at these prices.
Like me, you can stick to your price, but you may find that doubling your impressions doesn’t turn into sales.
I may try to use Fiverr’s recommended prices purely as a scientific experiment, but I recognize that it will cost me quite a bit with potentially little returns.
Should I give it a shot, readers, you’ll be the first to know.
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