Useful Tips on How to Avoid Crowdfunding Scams
There is a lot of uncertainty when it comes to crowdfunding. Indiegogo and Kickstarter might appear and feel like online stores, but you are not certain that you will get returns for the cash you pledge to a campaign. Most of the crowdfunding websites only require that the ones creating them offer some certainty 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.
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. The failure of some projects might be due to some difficulties in manufacturing or the owner mismanaging the lots of funding received. In spite of the project’s creator giving their best, some things still go wrong. 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.
A few ideas are much easier to put into effect 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. 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.
Another pointer is conducting the creators of the project. If you will be giving someone your hard-earned money, you should find out more about them. 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. It is hard for them to be accountable in case the project fails if they are 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. The likelihood is high that they will succeed on a new project in case they have developed or manufactured something in the past.