Useful Tips on How to Avoid Crowdfunding Scams
When it comes to crowdfunding, there is no such thing as certainty. 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. The only thing that most crowdfunding sites need from creators is the certainty 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 many things which might go wrong between a project getting funded and the delivery of outfits. The one creating the project might have miscalculated the time they require to complete the project. The failure of some projects might be due to some difficulties in manufacturing or the owner mismanaging the lots of funding received. In other cases, things go wrong despite the creator of the project giving their best. Hence, any crowdfunding project always involves an element of risk. Nonetheless, below we give some suggestions which can aid you in choosing better the crowdfunding projects to support.
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. There is a higher possibility of failure if you see that the project is complex. However, this ought not be the only thing you utilize to evaluate the validity of a project as a lot of the complex crowdfunding projects are the most enticing ones.
Researching the projects’ creators is another tip. You should know who you are supporting if you will be giving them money. Click on their profile on a social media website like Twitter or Facebook. If there is no information about them online and they do not have any company or personal profiles, then you should not invest any money into their project. If a person is not transparent, it says a lot about them. It is difficult for the creator to be accountable in case they remain anonymous. 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 aid in learning if the creator can compete 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.