Avoiding Crowdfunding Scams-Some Suggestions

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. Most of the crowdfunding websites only require that the ones creating them offer some 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. Issues in manufacturing might result in long delays while some project might not succeed as their owners might receive a lot of funding which they do not manage well. 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.

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. Search for real pictures of the actual product. If all you observe is the rendering of the product, you should take caution. 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.

Another pointer is conducting the creators of the project. You should know who you are supporting if you will be giving them money. 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. 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.

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