Structured Questions & Answers
01
Fiverr · Fee Structure
On the Fiverr platform, a freelancer completes a project worth $200. What is the net amount the freelancer actually receives after Fiverr deducts its service fee? Additionally, what is the service fee charged to the client if the order is above $50?
Explanation
Fiverr charges freelancers 20% of their earnings. On a $200 order: $200 × 20% = $40 deducted, so the freelancer receives $160.
On the client side, Fiverr charges 5.5% of the purchase amount as a service fee. The additional $2 small order fee only applies to orders under $50. Since this order is $200, the client pays 5.5% × $200 = $11 extra — making the total cost to the client $211.
Understanding both sides of the fee structure is critical for evaluating Fiverr as a business model: the platform earns from both parties simultaneously.
On the client side, Fiverr charges 5.5% of the purchase amount as a service fee. The additional $2 small order fee only applies to orders under $50. Since this order is $200, the client pays 5.5% × $200 = $11 extra — making the total cost to the client $211.
Understanding both sides of the fee structure is critical for evaluating Fiverr as a business model: the platform earns from both parties simultaneously.
02
Dropshipping · Business Model
A student wants to start a dropshipping business using AliExpress as the supplier and eBay as the storefront. She sells a product for LKR 5,000 to a customer. She then orders the same product from AliExpress for LKR 3,500 (including shipping). Which of the following BEST describes the complete order fulfilment sequence and profit calculation?
Explanation
In dropshipping, the retailer never handles the product directly. The fulfilment sequence is:
1. Customer places order on the eBay store (LKR 5,000).
2. The student forwards the order and customer's shipping address to the AliExpress supplier.
3. The AliExpress supplier ships the product directly to the customer.
4. Profit = LKR 5,000 – LKR 3,500 = LKR 1,500 (gross, before eBay/PayPal fees).
This model's key advantages are low startup cost and no inventory risk, but disadvantages include lower profit margins (no bulk discounts) and limited quality control since the seller never inspects the goods.
1. Customer places order on the eBay store (LKR 5,000).
2. The student forwards the order and customer's shipping address to the AliExpress supplier.
3. The AliExpress supplier ships the product directly to the customer.
4. Profit = LKR 5,000 – LKR 3,500 = LKR 1,500 (gross, before eBay/PayPal fees).
This model's key advantages are low startup cost and no inventory risk, but disadvantages include lower profit margins (no bulk discounts) and limited quality control since the seller never inspects the goods.
03
Google AdSense vs AdMob · Revenue Share
Dilshan runs a popular tech blog (website) and his friend Kavya has a mobile app with 50,000 active users. Both want to monetise using Google's advertising platforms. Which platform should each use, and what percentage of ad revenue will each retain after Google's cut?
Explanation
Google AdSense is designed for website/blog publishers. Publishers retain 68% of ad revenue (Google keeps 32%).
Google AdMob is Google's mobile advertising platform for app developers. Developers retain 60% of ad revenue (Google keeps 40%).
Therefore: Dilshan (website) → AdSense (68%); Kavya (mobile app) → AdMob (60%).
Both platforms support multiple ad formats — AdSense offers display, text, and video ads; AdMob supports banner, interstitial, and rewarded ads. A key shared risk is account suspension due to strict policy enforcement, including invalid click activity.
Google AdMob is Google's mobile advertising platform for app developers. Developers retain 60% of ad revenue (Google keeps 40%).
Therefore: Dilshan (website) → AdSense (68%); Kavya (mobile app) → AdMob (60%).
Both platforms support multiple ad formats — AdSense offers display, text, and video ads; AdMob supports banner, interstitial, and rewarded ads. A key shared risk is account suspension due to strict policy enforcement, including invalid click activity.
04
Affiliate Marketing · Mechanism
Nimal runs a popular YouTube channel reviewing Sri Lankan tech products. He joins the AliExpress Affiliate Program and posts a link to a smartphone in his video description. A viewer clicks his link and purchases the phone. Which statement MOST accurately describes how Nimal earns money and what makes affiliate marketing potentially risky for him?
Explanation
Affiliate marketing is a performance-based model: affiliates earn a commission only upon a successful sale, lead, or action — not per click. Nimal's unique affiliate link allows AliExpress to track referrals attributable to him.
Key risks include:
• Commission-only earnings — if no one buys, he earns nothing despite promotional effort.
• Dependency on the merchant — if AliExpress has fulfilment issues or poor customer service, it harms Nimal's reputation.
• Market saturation — many creators promote similar products.
• Payment delays — minimum payout thresholds may delay earnings.
Popular programs include Amazon Associates, eBay Partner Network, and the AliExpress Affiliate Program (up to 9% basic commission rate, 150M+ affiliated products).
Key risks include:
• Commission-only earnings — if no one buys, he earns nothing despite promotional effort.
• Dependency on the merchant — if AliExpress has fulfilment issues or poor customer service, it harms Nimal's reputation.
• Market saturation — many creators promote similar products.
• Payment delays — minimum payout thresholds may delay earnings.
Popular programs include Amazon Associates, eBay Partner Network, and the AliExpress Affiliate Program (up to 9% basic commission rate, 150M+ affiliated products).
05
Cryptocurrency · Methods & Concepts
A computer science graduate wants to earn cryptocurrency. He has a high-end GPU and considers mining, while his friend with limited hardware prefers staking. Compare these two methods: which consensus mechanism does each rely on, and what is the PRIMARY resource required for each?
Explanation
Cryptocurrency Mining (Proof-of-Work / PoW): Miners use specialised hardware (GPUs, ASICs) and software to solve complex mathematical puzzles to validate transactions and add blocks to the blockchain. Primary resources: computational power + energy. Reward: newly minted cryptocurrency. Mining has become highly competitive — often requiring participation in mining pools.
Cryptocurrency Staking (Proof-of-Stake / PoS): Participants "stake" (lock) their existing coins in a compatible wallet to help secure the network and validate transactions. Primary resource: held digital assets. Reward: additional cryptocurrency tokens. Staking is considered more energy-efficient than PoW mining.
Other ways to earn include trading (exploiting price fluctuations) and investing (long-term holding). Popular exchanges include Binance, Coinbase, Kraken, Bybit, and Crypto.com.
Cryptocurrency Staking (Proof-of-Stake / PoS): Participants "stake" (lock) their existing coins in a compatible wallet to help secure the network and validate transactions. Primary resource: held digital assets. Reward: additional cryptocurrency tokens. Staking is considered more energy-efficient than PoW mining.
Other ways to earn include trading (exploiting price fluctuations) and investing (long-term holding). Popular exchanges include Binance, Coinbase, Kraken, Bybit, and Crypto.com.
Correct out of 5 questions