Helpful Pointers to Avoiding 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. 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 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 other cases, things go wrong despite the creator of the project giving their best. Hence, any crowdfunding project always involves an element of risk. But, below we discuss some tips that can help you in making smarter choices when supporting crowdfunding projects.
A few ideas are much easier to put into effect than others. When you come across a creator asking for money online for their project; you should assess them well to see if they can carry out their idea well. 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. You should learn more about the individual you will be supporting if you will be giving them cash. 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 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. 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. This will assist in knowing if the creator can finish the project on time. If they have successfully developed or manufactured something before, the possibility is high that they will succeed on a new project.