Are you new to hyips, need advice in choosing your investment platform?
Hope this post may help you.
A HYIP (high yield income program) refers to an investment that brings high rate of income. Usually it is way above the standard rates for deposit accounts. Standard interest rate of hyips may vary form 0.5% to 3% daily, with withdrawal of capital at maturity; some also come with compounding facilities. While there do exist offline hyips, they are open to only a few because of the high investment capital, usually $30000 onwards.
So the online hyips do offer an exceptional opportunity to invest money but the risks associated with it are noteworthy. Indeed a yip does not last forever; it has to close one day or the other. So if one day you find yourself not receiving payment from your so trusted hyip, don't be surprised; the most honest of admins can turn really selfish if his program goes through a crisis.
Risks
For a private investor almost all options for risk-free investing are closed. That
means, if someone wants to invest money and soon get high incomes from the
investment, he/she will risk anyway. But numerous things can be done to minimize this risk (discussed later).
The life cycle of a hyip :
Pay-back period is the birth of the project. The creators of any HYIP invest some
money into it. First of all, they are needed for creating a well-functioning and nice
web-site, for content development, registration in paid rating systems and for
advertisement. It all costs money and as the project does not bring any profit yet the period is always loss-making. One cannot assess the reliability of the project during this period; however, there may be some indirect signs that the project is a fraud. For example, when the web-site is hosted free of charge and all content is stolen from some other web-site, it is intended to collect money and close itself.
Growth period is the beginning of project’s functioning. During this period the
investors appear who try to attract additional clients with a view to get the referral payments. At some moment the project comes over the point of self-sufficiency and starts bringing the real profit. The project success at the stage depends on the scope of methods applied for attracting the clients. A direct sign that the organizers plan to further support the program are the various strategic actions such as extra money to the account of everyone who register in the project, for example.
Period of saturation is the most stable period in HYIP functioning. During this timethe investment flow has stable growth, the program brings maximal profit and clients receive their interests regularly.
Descent period is a determining stage for further program’s life. It is characterized by the fact that the users lose their interest to the project, the flow of new investments fall and the program ends its development. All false projects terminate their activity few days after they enter the descent period, they don’t pay to their clients and disappear with no trace. Creators of trustworthy programs undertake measures trying to bring their projects out of the stagnation.
Once you analyze the HYIP actions during the descent period, you can make a
conclusion about the perspectives of investing into the project. If the program has passed the crisis situation, continues to work and bring profits to its investors, you can be sure in the project: it is a serious business undertaking aimed at mutually beneficial cooperation. You can learn that the project enters its descent period by analyzing its advertising dynamics. As soon as the users’ interest starts decreasing, the project organizers develop a demonstrative agitation: they write letters to the program’s participants, register in new catalogues, post messages on forums and guest books.
Of course, the investor shall do his/her best to find out the perspectives of the
project before it reaches the crisis point. The successful end of the descent period
may become a signal for those who wants to join the program at its new stage. What about those who plan to participate in the program from the very start? Those investors shall make a detailed analysis of the selected HYIP in the very beginning and invest their money only after they are sure of the program reliability.
Minimizing Risks
Before you invest money in the project you got interest in, surely you need to analyze every aspect of the program.
1. Amount of regular money payments.
2. Investment limits.
3. Specifics of the activity.
4. Trustworthiness to program organizers.
5. Your impressions from the web-site.
6. Domain check.
7. Contract information.
8. Materials and opinions on specialized forums
9. Position in rating sites.
10. Independent research.
Let us consider in detail every item.
First of all you need to evaluate the amounts of regular money payments, i.e. the
interest from the investment capital to be paid by the administrator’s projects.
The main thing is not to get caught by promises. If the program promises you everyday doubling of the invested sum, be sure it is a fraud. The average amount of payments under serious HYIP makes up about 3-4% per day. There may be
insignificant deviations. But 7-10% per day with almost no doubt indicates that the program is a ponzi scheme and the money will be paid to the investor at the expense of new members. As we have clarified earlier, such programs do not promise anything good to the private investors. Some projects offer variable every-day profit based on the program’s incomes. As a rule, such HYIP are actually do business tryingto effectively accumulate investor’s money and are not eager to lie to their investors.
The statistics shows that the most serious high-yield income projects guarantee monthly payments at the amount 10-50%. Besides, the numbers may vary depending on the specifics of the activity.
Another aspect is the investment limits. They are the limits for minimal and maximal amount of investments. It may seem the minimal bottom and no maximum for investing demonstrate the openness of the program and its desire to cooperate with the clients who have different financial abilities. However, as the practice shows the serious investment projects always determine the minimum and maximum for the investment. If there are no investment limits you should think whether it is a ponzi project; whether the organizers hope by attracting more and more investment pay interests only at their expense.
The statistics shows that the most serious high yield income programs establish the minimal limit of 25$ and strictly limit the maximum.
Almost every HYIP says about what form of economic activity will create the profit. Earlier we have given the list of the most popular sources for such investment programs and we are not going to repeat it. Let us note that if the web-site says that the program ‘is connected with the FOREX trade and other forms of business’ you should know that it is most likely to be Ponzi. The leaders of serious programs, surely, are not eager to open all details of their activity. There are many dishonest dealers in the world of on-line HYIP who are always ready to bite from somebody else’s pie. However, there are general schemes for all serious programs. The Ponzi creators rarely develop complex schemes because they won’t use them anyway. The fraudsters usually say few words that the profit is created by playing on currency exchange market. The serious projects’ leaders try in detail to explain to the investor how the money will be used but not revealing any company names, amounts of investments and trader’s names.
However, there have been cases in HYIP when Ponzi projects easily covered under the serious projects and their administrators revealed to the clients the reports about market fluctuations and information about the investments made. As the result those HYIP turned out false and their investors lost their money.
Another aspect is the trust in project organizers. You should carefully study messages the administrators leave on forums and analyze the messages. Pay attention to how much time the project organizers spent on the forum. If they say that they do business, they should lack free time. In case they are on-line on the forum from dawn till dusk you should consider whether they are fraudsters.
Your impressions from the web-site are one of the most important aspects allowing to evaluate the relations of the projects leaders to their program. Good engine, private domain and functional design, simple to use and effective feed-back means do not surely say about the honesty of the program administrators but at least indicate they are serious about the project and have invested money into it. In case the site is hosted free of charge and does not have good design, its content is stolen – it shows
the administrators are not serious about the program and they did not spent any
money themselves. You should think twice before investing your savings into such a project.
If the project has its own domain name, you should check it using a special ‘whois’ service (http://www.nic.com/). Here you can get to know the registration details, contact information, name and last name of a person who has registered the domain. Surely, this method cannot guarantee anything because many domains are registered anonymously and the fraudsters easily may give false information. You should carefully study the information given by ‘whois’ service and to compare it with the information you have about the project’s founders.
The more possibilities administrators of the project give to maintain the effective
feedback the more trust to the project is given. The possibility to directly discuss the details and program specifics with the leaders at least proves the fact the
administrators are interested in the cooperation. Besides, often the high yield
income project’s leaders try to stay anonymous. In the conditions of today’s business it is rather reasonable and cannot be considered a direct sign of fraud.
Carefully study the specialized forums dedicated to the high yield income programs. As a rule, many experienced investors who have participated in many programs visit them. Especially it is important for the beginners how have just started their on-line investing. Thanks to the forums communication you can reveal serious weaknesses in the HYIP you got interested in, learn the opinion of the investors who already participate in the program. HYIP forums are rather good source of the newest and impartial information and you should not disregard it.
After analyzing information on the rating sites you may learn whether the program pays interests at that moment and how long the program exists. However, this information are less valuable than the information from forums because there are no guarantees the project that successfully pays interests today will pay them tomorrow.
Finally there is a possibility to check the HYIP by independent organizations.
However, today this way is actively used by new high yield projects with a view to get additional advertisement and possibility to distinguish themselves from other
programs. In order to hold the inspection the project leaders shall give their real
contact information (address and phone number) after that the independent
organization analyze the information and make their conclusion. Often there were
cases when HYIP leaders have given false addresses (for example, address of some supermarket or parking lot) and have received the approval of the independent organizations. It happens due to the fact that many organizations just check the fact there is address like this and do not check other aspects of the business activity.
In other words none of the abovementioned aspects can guarantee the fact the
project is false or reliable. Only by studying them all you can make adequate
evaluation.
Making your first investment.
Invest small lose small. Even if the hyip is a fraud, you won’t lose much money. For beginners, try low interest rate and low minimum hyips. For e.g. a hyip that gives 1 % daily with a minimum investment of $1.
Start getting paid? Now also, don’t be hasty, several scams payout small investment as they know this is to test if they are scam. So they will pay you for small investment but may discontinue (if they are scam) if they see you are not investing more money in their program. In brief, wait till your initial investment start bearing profit before investing a larger capital.
The Golden Rules
- Don’t get fooled by high interest rates
- Don’t be greedy
- Don’t be hasty
- Invest intelligently [read forums, check for ratings]
- Invest small but everywhere [distribute your sources of income]
Ending note
Sincerely hope that this will help newbie investors to invest safely and intelligently.
Check the [Recommended hyips] section.
Check the [Payouts | Payments Received] section
