The internet has come with many innovative ways to help people in all aspects of life. Ventures like Kickstarter and Indiegogo which are known as crowd funding websites have revolutionized the ‘start up’ business model by raising capital for an idea that has not yet come into fruition. On paper this looks like a wonderful idea which minuses the blood sucking interest making bankers from the equation in a startup. However, you need to be careful before buying anything that is sold on projects like kickstarter and indiegogo. Here are some reasons why.
Trust issues
The problem with pledging money online is that the buyer doesn’t know if the company or people behind the company are legitimate or not. There have been numerous stories about customers being left high and dry with no product. Many times, there is little or no recourse for these individuals.
Scams
This is the biggest internet scare when it comes to online shopping or investing in a product coming out of these capital generating websites. Getting a million dollars to publish a book on “how to make millions” is illogical and definitely a scam. Therefore you have to be really careful in order to stay away from scams, frauds and deceits.
Funds usually fall short
This is one of the biggest problems in these kinds of projects. Sometimes the project needs 10,000 dollars in order to kick start and you invest in it but only 2000 dollars get raise for it. Refunds from these websites continues to be an issue.
Buying outside the USA is a bad idea
Buying items or pledging money from outside the US is not generally advised. There are many reasons for keeping this in mind. It is not an impossible feat and has been done on a regular basis before, but refunds and product delivery can be more difficult from outside the borders of the country. Don’t forget you usually get hit with extra taxes as well when the item arrives.
Out of control badges
Just like a blue tick on the validated profiles on Facebook and twitter, websites like Kickstarter use staff badges in order to notify you that this product or the product coming in the future is authentic and you can buy or invest in it. However, you must be aware that these badges are awarded by an algorithm and not by people. Therefore it is really important thorough research is carried out before you order anything online.
These websites have made the ‘start ups’ an entrepreneurs dream but on the other hand many people have suffered as well. Therefore, if you are ordering something from these websites or pledging money, do carry out extra research before you do so.
