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. Hence, they cannot face any consequences in case their project does not meet their deadlines or even deliver.
There are many things which might go wrong between a project getting funded and the delivery of outfits. The person creating the project might have underestimated the right time they require to finish 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. However, below we explain some pointers which can assist you in making better decision when picking 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. If all you observe is the rendering of the product, you should take caution. There is a higher possibility of failure if you see that the project is complex. 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 conducting the creators of the project. You should know who you are supporting if you will be giving them money. Check out their profile of social media sites like Facebook or Twitter. Do not dare invest any cash in their project, if you do not see any personal or company profiles. You will know a lot about an individual in case they are not transparent. 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 manufactured or developed a product successfully before; there is a high likelihood that they will be successful in the new project.