Useful Tips on How to Avoid Crowdfunding Scams
There are a lot of things which can go wrong when it comes to crowdfunding. Even though Indiegogo and Kickstarter might look and feel like online stores, you are not sure that you will get back the money you pledge to a campaign. A lot of the crowdfunding sites only need that the people creating them provide some assurance that they will deliver on their promises. Therefore, they cannot be held accountable in case their project does not meet its deadlines or even deliver.
There are several things which can go wrong between funding a project and the delivery of outputs. The creator might not have indicated the right time they needed to complete the project. Issues in manufacturing might result in long delays while some project might not succeed as their owners might receive a lot of funding which they do not manage well. Other times, things go wrong in spite of the best efforts of the creator of the project. Therefore, there is always some risk involved when crowdfunding a project. But, below we discuss some tips that can help you in making smarter choices when supporting crowdfunding projects.
Some ideas are simpler to execute than others. When you see a creator asking for funds online for their project, you have to assess the idea carefully to see if it is easy to implement. Look for real photos of the actual product. You should be careful if all you observe are renderings of the product. In case you observe that the project is complicates, it is likely to fail. But, this should not be the only factor you use to assess the validity of a project as the most complex crowdfunding projects are the ones that are most exciting.
Another pointer is conducting the creators of the project. You should learn more about the individual you will be supporting if you will be giving them cash. Click on their profile on a social media website like Twitter or Facebook. Do not dare invest any cash in their project, if you do not see any personal or company profiles. If a person is not transparent, it says a lot about them. If they remain anonymous, how can you hold them accountable if the project fails? Conversely, if the project’s creator gives their personal information on the internet, it shows that they are confident and that they are willing to risk their reputation.
After analyzing their details, you should then learn more about their past achievements. This will assist in knowing if the creator can finish the project on time. If they have manufactured or developed a product successfully before; there is a high likelihood that they will be successful in the new project.