Useful Tips on How to Avoid Crowdfunding Scams
When it comes to crowdfunding, there is no such thing as certainty. 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. A lot of the crowdfunding sites only need that the people creating them provide some assurance 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 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. Other times, things go wrong in spite of the best efforts of the creator of the project. 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. Search for real pictures 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.
Another pointer is researching 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. 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. On the flip side, in case the creator of the project reveals their personal information online, it shows their assurance and that they are ready to risk their reputation.
After assessing their personal information you must then find out more about what they achieved in the past. This will aid in learning if the creator can compete the project on time. The likelihood is high that they will succeed on a new project in case they have developed or manufactured something in the past.