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The $5 economy

YOU may think that R40 can't buy you much in 2010, but a bustling online community called Fiverr is proving that there are people willing to do just about anything for $5.

Visit www.fiverr.com and you're immediately greeted with listings from users offering their services.

"I will plant a tree in my garden for $5," says one. "I will send your child a letter from the fictional character of your choice for $5," reads another.

The business category features more serious services, like "I will be your virtual assistant for $5" or "I will write an effective business plan for your new ventures for $5".

As the site grows in popularity, the list of available services is becoming more and more comprehensive. My friend the stand-up comedian Don Packett, who alerted me to the service, had a kid in America write a song about him for $5 while his business partner Richard Mulholland created videos with custom music for each of his two children using the service.

As someone who runs one of the most successful companies in the digital creative space in SA, Mulholland also blogged his opinion about what this means for businesses that have traditionally provided their services for far more than $5. He called the post "Yesterday's career is today's paper route".

Said Mulholland: "We could call foul, and say that this is unfair and raping our industries, but ...  these guys aren't trying to break the rules, they're just doing what they can do, for what they need.

"The more serious suppliers are ranked by the community, and the payment is only released by Fiverr once you're satisfied," he continued.

"What can you give your clients for R40? Can you guarantee quality and service at that price? Of course not. Now, understand that I'd like to believe that our big flash vids are of a higher calibre than the ones above, but given time, they'll catch up. I'd bet your life on it."

"The reality is this, we are all already dinosaurs; act accordingly, or say hi to the dodo for me," he concluded.

Mulholland may have a point, especially considering quality which is on its way to catching up.

To test the service, I set up an account on Fiverr myself. Having worked in radio for some years where I became adept at recording and editing things, I offered to make people jingles for $5 each.

"I will record and produce a professional jingle for your podcast or radio show for $5," said my listing. I set it up last Friday afternoon. By Saturday morning, I already had two orders.

Surprised at the response, I got out my microphone and sat at my desk in my pyjamas for five minutes that morning to complete my first order from a DJ in Spain. He replied soon to approve the work - $5 earned.

Later that day, more orders came in. A video producer in the USA wanted an introduction for her YouTube channel and an Italian radio station wanted a jingle for one of its shows. Another five minutes of work, another $5 that will enter my PayPal account within 10 days.
The smarter Fiverr users are going to realise they can automate their work so that the time spent on completing orders is negligible, allowing them to drive volumes that make $5 a perfectly acceptable sales price.

Even with the five minutes it takes me to produce a jingle, I calculated that I could generate R14 400 per month with a commitment of three hours a day. If I committed myself to it full-time. I could double that number. Any out-of-work digital creative professional should consider this - provided they can get in enough orders to make it work.

Fiverr is a prime example of how online marketing changes everything. Providing services at R40 a pop will get you nowhere offline. But online, where the world is your market and things happen rapidly, the sky is the limit for what is possible and the floor is the boundary of what it could cost.

- Fin24.com


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