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 several things which can go wrong between funding a project and the delivery of outputs. 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. Hence, any crowdfunding project always involves an element of risk. 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 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. Search for real pictures 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. 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.
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 evaluating their details, you ought to learn more about their past successes. 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.