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Useful Tips on How to Avoid Crowdfunding Scams

There are a lot of things which can go wrong when it comes to crowdfunding. 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. Therefore, they cannot be held accountable in case their project does not meet its deadlines or even deliver.

There are several things which can go wrong between funding a project and the delivery of outputs. 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 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 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. Look for real photos 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.

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. Click on their profile on a social media website like Twitter or Facebook. 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. 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 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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