Helpful Pointers to Avoiding 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. Thus, they cannot face any repercussions if their project does not deliver on time or does not even deliver.
Between the funding of a project and the delivery of the results, there are numerous things which could go wrong. The one creating the project might have miscalculated the time they require to complete the project. Manufacturing problems might lead to long delays while a few projects might fail because their owners got a lot of funding which they mismanage. In spite of the project’s creator giving their best, some things still go wrong. Thus there is always a risk element involved in any crowdfunding project. Nonetheless, below we give some suggestions which can aid you in choosing better the crowdfunding projects to support.
Some ideas are much easier to implement than others. When you come across a creator asking for money online for their project; you should assess them well to see if they can carry out their idea well. Search for real pictures of the actual product. If all you observe is the rendering of the product, you should take caution. In case you observe that the project is complicates, it is likely to fail. Nonetheless, this must not be only thing you employ to assess how valid a project is since several of the complex crowdfunding projects are the most exciting ones.
Another pointer is researching the creators of the project. 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 you do not see any details regarding their company or personal profiles, then you should not support them. If an individual lacks transparency, 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 assessing their personal information you must then find out more about what they achieved in the past. You can learn if the creator will finish the project promptly if you learn about their past successes. If they have successfully developed or manufactured something before, the possibility is high that they will succeed on a new project.