Unpacking being a backer for products

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:

  1. the actual product / services you are considering backing, and looking for key items in the project description;
  2. the crowdfunding transaction and the options you can exercise at each stage of the process;
  3. the legal contract between yourself and the project creator;
  4. the difference between a crowdfunding a product/service and a pre-order or sale;
  5. the pricing of the reward level;
  6. the role you as a backer play in funding a project creator’s project;
  7. the risk/reward profile and expected loss of the project;
  8. the motives of the project creator in using crowdfunding;
  9. the ability of the project creator to deliver on his promises;
  10. 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.