Useful Tips on How to Avoid Crowdfunding Scams
When it comes to crowdfunding, there is no such thing as certainty. You are not certain that you will get all the money you pledge on a specific campaign like Kickstarter or Indiegogo even if they might seem like the real deal. The only thing that most crowdfunding sites need from creators is the 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.
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. 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. Thus there is always a risk element involved in any crowdfunding project. However, below we explain some pointers which can assist you in making better decision when picking crowdfunding projects to support.
Some ideas are simpler to execute than others. When you spot a creator requesting for funds on the internet for their project, you have to carefully evaluate the idea to see if they can execute it easily. Look for real photos of the actual product. You have to be careful in case all you see are rendering of the product. If you note that the project is complex, there is a higher likelihood that it might 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.
Researching the projects’ creators is another tip. 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. 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. If they remain anonymous, how can you hold them accountable if the project fails? On the other hand, if the project’s creator reveals their details online it shows their great confidence and that they are willing to put their reputation on the line.
After analyzing their details, you should then learn more about their past achievements. 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.