If you are backing a business project, there are 10 considerations you need to weigh up before making your pledge or, at the latest, before the funding period ends. These are:
- the actual product / services you are considering backing, and looking for key items in the project description;
- the crowdfunding transaction and the options you can exercise at each stage of the process;
- the legal contract between yourself and the project creator;
- the difference between a crowdfunding a product/service and a pre-order or sale;
- the pricing of the reward level;
- the role you as a backer play in funding a project creator’s project;
- the risk/reward profile and expected loss of the project;
- the motives of the project creator in using crowdfunding;
- the ability of the project creator to deliver on his promises;
- the psychology inherent in the crowdfunding transaction, including your goals and motives as a backer, the project creators’ motives, and the influence of other backers, such as retailers.
At the end of the day, as a backer, you are funding someone else’s dream; accordingly, it is fair that you too have certain expectations that the project creator needs to respect.
Given that I am a backer of products myself, I have created various templates for that have helped me in my journey. The main templates I use are to:
I have made these templates available to share.