I’m not sure why you said “ha” after Fiverr. I’ve been a proofreader (more like a line editor/copy editor, really) for 3.5 years and have worked on many book projects there and outside of Fiverr. (writerkerrie) … Yes, some editors on there are crap and I agree, but many of us ROCK! I only charge $5 for 1,500 words of text (I only receive $4) because I LOVE WHAT I DO and I love working from home and being able to homeschool my kids. I am also an author myself and want to help other authors by not overcharging them. I have received MANY book projects from authors who paid the rates you describe above and I ended up finding DOZENS more mistakes and GLARING errors that for $70/hour … well, they should have been caught. Please don’t write off Fiverr. Some of us care about what we do and we do it well and you can tell from my almost-1,600 great reviews that this is true. Don’t hire someone if their gig is written poorly and they barely have any reviews!
It’s best, if you decide to hire a freelancer, to figure out what the going rate is for the service you need, and expect to pay that amount. Otherwise it may turn out to be a waste of money, because the quality of the service will suffer. Sometimes there are payment plans to help with high costs! But it’s really a good investment to pay industry standard for editorial services; I agree with Shayla.

About 25% of my (fiction) editing work is direct with authors, and the rest is split between two publishers. It my be of interest to note that these rates are close to what publishers pay their editors. That is to say, if you, as an author, were to traditionally publish your book, you would be paying this amount via royalties. Creating a professional product via self-publishing is not cheap, the costs (and income!) just shift from the publisher to the author.
I want to thank the author of this article, the people responsible for this website, and the helpful comments I’ve read here, before discontinuing my watching of this thread. I have reached out to several developmental editors through emails and by posting my need for such an editor on the-efa.org. If anyone decides to go that route, the response has been tremendous. Be aware of their policy for posting jobs, though. They require aspiring authors to adhere to the ‘going rates’ shown here: http://the-efa.org/res/rates.php.
As a book editor (PhD in Literature) who’s now writing fiction, I thought I’d add my comments, which are these: 1. You need an editor who is going to fix the story; the writing doesn’t matter all that much, the story dictates whether or not readers will be satisfied and ultimately how successful the book is going to be. For that reason, sample edits aren’t all that helpful – they tell you how editors can improve the line-by-line. Does the editor know how to plot a novel? Satisfy reader expectations, which differ for each genre? Read “StoryGrid” to better understand… Read more »
Thanks, Jessi. Everything you say is true, but for anyone reading this and feeling anxious about the EFA, I’d like to put in a good word for the organization. Established in 1970, they’ve been around for much longer than the current self-pub/e-book revolution (so: not a fly-by-night company), plus they exhibit at major events (BEA, AWP, etc), where you can meet some of the editors in person. I’ve had nothing but good experiences with their members and recommend them on my resources page.
Regarding your last question, I know of no editor who gives a money-back guarantee for occasional errors that happen to slip through or for a different opinion by a later editor. I’m afraid such things are just the nature of the publishing beast. But by having a shorter portion edited first, you will get a decent feel for whether someone is the right editor for you, and will be able to be confident in his or her work on your entire book.