Is Fiverr Income Permissible Despite Its 20% Commission?

Answered by Shaykh Muhammad Carr

Question

I intend to earn a livelihood by offering typing and design services through the Fiverr platform, which facilitates freelance work. Fiverr deducts a 20% commission from each payment I receive. For instance, if a client pays $5, Fiverr retains $1 as its service fee.

Is it permissible to work under such an arrangement and accept the remaining amount as lawful earnings?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health. May Allah reward you for ensuring your contracts adhere to Islamic Law principles.

Allah says,

‘‘And whoever produces it shall have a camel-load of grain.” [Quran, 12:72]

It is permissible to work under the arrangement described above. This is understood as a service-level agreement, defined as: “a contract for a sought-after and known benefit that is permissible and may lawfully be provided, in exchange for a known compensation.” [Ibn Qasim, Fath al-Qarib]

In essence, the payment made to Fiverr constitutes remuneration for providing and maintaining the services platform.

The pay, whether in cash, in-kind, or a service, should be well known to the extent that it leaves no room for dispute. It can be either fixed or variable according to a method that is well known to the two parties. [AAOIFI] In your case, 20 per cent from each payment you receive.

How Fiverr Works

Fiverr is an online marketplace where freelancers (sellers) offer services (gigs) across various categories like design, writing, programming, and marketing. Buyers browse these gigs, place orders, and receive deliverables through the platform.

Contractual Arrangement

• Independent Contractors: Fiverr acts as an intermediary; freelancers are independent contractors, not employees.
• Terms of Service Agreement: When using Fiverr, both buyers and sellers agree to Fiverr’s Terms of Service, which govern transactions, payments, disputes, and refunds.

I pray this is of benefit and that Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.