HYIP stands for High Yield Investment Program.
They are basically High Risk Investment that promise high returns .
As with other investments, high gain means high risk. Many HYIP programs were proven to be scams. Most of the scam HYIPs use the ponzi scheme, and they do not invest your money elsewhere. People call them SCAMS or Ponzi.
Therefore when most people heard of the term HYIP, they usually refer it as scams. They fear HYIPs. They are afraid to lose money. They are afraid of risk. They are losers in life.
So many HYIPs are ponzi! Why must I invest?!
Ponzi? So what. As long as ponzi and scammers are around, we can make money. If you are afraid to lose money, leave our monitoring site now. Losing money is the key and the gear to build a better investment diversification plan.
HYIP gained popularity when e-currencies such as e-gold, StormPay , Evocash, E-Bullion, Paypal, Netpay, Pecunix and others were introduced. HYIPs allow investors to invest even in a very small quantity, making the program very popular and easy to follow.
HYIP Rating Site - A site in which either the site owner, or site members rate/vote for current programs. Rating sites can be a good sourse of information, but also you must realize they can be manipulated by members and site owners. Use rating sites in order to find when programs started, how much they pay out and what others have to say about them.
Compounding Interest - To reinvest a certain amount of your funds. Instead of "cashing out" returns from a program or investment one reinvests the returns, which give a compunding affect. Many HYIPs offer compounding in order give members incentives to keep their funds in the program. Compounding can be extraordinarily benefitial, however it is not always suggested in the HYIP arena. A good formula for compund interest is: FV = P(1 + r)^n; where FV= future value, P = initial investment, r = rate of return; and n = number of terms.
Cycler - Usually a program that sells banner advertising with the incentive of recieving a % of the money paid for that advertising back. This percentage is usually more then what you paid for the ad. As people purchase ads after you do, your banner cycles off the program and you get the given return. Basically Cyclers are transparent ponzi's, although being that they offer a product, advertising, the term ponzi may not always apply.
Referrals - Any member who has signed up for a program using a link provided by oneself. Referral programs are available for many HYIPs as well as other business ventures. They can be quite rewarding at times. There is however a quesion of whether or not referring people to programs that you know are a scam is ethical or not.
Rule1: Prepare to Lose
Be prepared to lose and only invest money you can afford to lose. Dont think of earning a living on HYIP. Always invest in HYIP to earn extra income for other purposes such as setting up a business. HYIPs dont last forever!
Diversify your money into 10 to 20 programs. What to diversify into? It will depends on what type of investor you are.
Usually only 70% or more of your investments will fail before you even get back your 100% of your money. However, your remaining investments will pull through long enough to coverup for the loss.
Rule3: Get Capital ASAP
Always take out your capital as soon as possible before you do any compounding or reinvesting. If you are Mr Hell, then you might ignore this rule.
Rule4: Grow Wisely
After you have got back your capital, begin to compound. 100%,75%,50% or 25%....its your choice. Higher compounding rate if your program is doing well. 0% compounding if your program is dying.
You must always do you own research before you enter into any program. Read the forums, read the monitoring sites such as ours :) and do a !whois search.
You can do a !whois search here : http://www.whois.sc or http://www.whois.ws
Ask yourself these questions:
- who are the admins?
- are they responsive?
- where are they from?
- which monitoring site are monitoring them?
- what are the comments given by the public?
- how did they get their income?
- how long have they being operating?
- what documents do they have?
Always be a skeptical loser before you enter any program. When you are a skeptical person, you will do 10 times more research than an idiot who joins a program blindly.
Rule7: Watch for Warning Signs
When you are in a program, watch out for the warning signs!
If your program is failing, dont bother crying over it. Look elsewhere for a better investment.
Rule8: Zero Emotion
Dont let your emotion do your investing. Dont be Greedy!! Dont be afraid!! PLAN PLAN PLAN!! Stick to your PLAN!!
Due Diligence And Its Aspects
(in co-operation with HYIP-Navigator.com E-magazine)
J ust to start out, each of you has probably heard that "high yield" means "high risk". Programs generating high returns are normally involved in risky and volatile fields of capital management, such as currency operations, stock exchange, sports betting, metals trading etc. It is clearly understood that safe investing is not the issue in this case (except for very few programs with unique business concepts, proven by years of experience). The first thing you need to be aware of is that there is always a chance to lose part of your money, to receive lower profits than you expected or to face a delay in payout for whatever reason. Nevertheless, it doesn't happen at the same time with all programs, - so if you have diversified well, it will not really matter if one of, let's say, ten programs from your portfolio is undergoing shortcomings of some sort.
The problem is to make sure that all of the programs you are invested with are real businesses instead of being mere pyramid schemes, where returns are paid from the investments of new members, and when the pyramid reaches its peak (in other words, when its admin decides that he's got enough money to retire), it collapses and you are left with nothing in the majority of cases. The sole of this trick is based on the fact that most e-currencies offer anonymous and irreversible transactions. It means that even if you complain to their administration/support with a claim stating that "an account holder # XXXXXX has scammed me off $YYY USD", you will receive a ridiculous response advising you to consult legal services in your country of residence or to obtain a court subpoena for further investigation to be executed. Certainly, you will most likely choose not to do so for one simple reason - the services of a lawyer will cost you way more than the amount of money (normally, a few hundred bucks) you have invested with that program. Even if you turn out to be persistent enough and contact the appropriate law enforcement agencies, it will not help you in any way, since the scammers use fake names (or stolen identities, just the way it was in case with "Intellekt-Kapital" - a huge scam, run from Germany. Hanover city police proved to be unable to catch the crook behind it, since he was using the name of another person who has never even heard of that program). Hence, it is better to avoid scammers than to go after them once you lose your hard-earned money.
What are the ways of verifying the validity of a particular program's business? Ideally, it is a personal meeting with its administration where you can ask any questions, check out the original registration and identification documents and even take some pictures. But what if you live on different continents and a plane ticked would cost more than the total amount of your investment with this program? In this case we would suggest you use some recommendations we are about to give you in this article.
When it comes to online investing, the first thing you should do is check out a program's website. Pay special attention to its design. Is the program using a primitive template with a standard collection of FAQs (Frequently Asked Questions) and senseless modalities (such as "backed by Forex", "experienced traders", "corporate backing", "inner workings", "work behind the scenes" etc.) in the explanation of its business concept, with no actual names and contact details being specified? If so, just pass it.
Another important step is checking the domain registration data of a company's website (also known as "WHOIS data"). Actually, it can tell you much more than you would ever expect. The best way of obtaining this data is going to http://www.dnsstuff.com or http://www.whois.ws and typing the address of the program's site. Once you hit "Enter", a complete list of contact details will be displayed on your screen.
First of all, it's the name and the contact details of the registrar. For instance, if an allegedly large and credible international stock trading company with a fancy name is using a cheap web-hosting service, located in one of the "third world" countries, this fact is definitely worth giving it a thought.
Secondly, you should pay attention to the dates of domain registration and expiration. If a company says it has a few years of experience in working with online investors, but their website domain was registered only a couple of months (or even weeks) ago, it is obvious that they are lying. Alternatively, if you have just read an article of theirs about the program's long-term plans for the future, and then you see that their domain registration expires in less than half a year, the chances are that it is nothing but another scam.
Thirdly, it is the actual contact details which are part of the WHOIS data. They normally include an e-mail address, a physical address, and a telephone number. You might be willing to give a call to the number specified to make sure it's not made-up and really belongs to the person listed there.
Once the WHOIS check-up is complete, you can move on to the verification of the company's documents. There are three basic types of documents to be verified: registration certificates, trading history or copies of contracts, and bank reference letters. Once supplied with these documents, you are ought to contact their issuer in order to confirm the validity of these documents. The name of an organization/agency which has issued a particular document must be specified on the document itself. Then you just enter it into a search engine (e.g. Google.com) and look for a phone number or e-mail address of the issuing institution. It would be best to provide them with a faxed or scanned and e-mailed copy of the document to ensure the most precise verification (quite often companies have similar names or even worse - use other businesses' brands without their permission). In case an investment program has provided you with a weird registration document compiled in a foreign language, do not hesitate to ask them for a copy of their bank reference letter. Even minor financial institutions involved in international banking are listed on the Internet, altogether with their contact information.
The third stage of Due Diligence is a personal meeting with a program's staff (if they agree, of course). In this case it would be good to invite a friend who is a lawyer or a businessman to go with you. That way they will not be able to lie about their business activities or past performance. Also, don't forget to bring your camera with you in order to take some pictures of the admins.
In conclusion, we would like to advise you not to invest what you cannot afford to lose and to diversify between five to ten different programs. Also, remember to take your initial deposit out as soon as possible, and re-invest part of your profits. If you follow this strategy, you will never lose any money, no matter what the outcome is going to be.
Before investing in High Yield Investment Programs there are several aspects to take into consideration. Here's a list of the most important ones:
› Always get some knowledge about the High Yield Investment industry before making a decision to invest your money in High Yield Investment Programs. A good advice is to read every page of this website before doing anything else. As mentioned before, when done right, High Yield Investments are extremely profitable, but without knowing the industry and which programs to invest in you'll most likely lose your money. Knowledge is one of the major keys to success in the HYIP arena.
› Think about what your reasons for investing are. Are you looking at it as a solution to your financial problems you shouldn't even think about it. As mentioned several times on this website, High Yield Investments are risky, and if you're unlucky enough you could eventually end up without any money at all.
› Always think over your financial situation before taking the step to invest in HYIPs. Never invest more than you could afford to lose.· Are you a gambler or more careful? Even if High Yield Investing is much like gambling there are options that seem to be safer than other. Decide how big risks you are willing to take.
› If you've made the decision to start investing, find a few programs that you believe in, and invest in all of them. Diversifying your investment on several programs will reduce the risks and you won't lose everything if one program goes out of business.
› Before investing in a specific program, do some research on it. Does the website look professional? Do they provide any contact information? Where are they based? Check this out before making a final decision.
› Always check what the rules are regarding withdrawals before investing in program. Some programs let you withdraw your money whenever you want. Others keep your money locked for months.
› Do some calculation using our high yield investment calculator to find out how long it will take before you'll get your investment back.
Sometimes High Yield Investment can tend to be very much like gambling. And yes, it is very much about luck and about finding the right programs. However, if you follow the advice given above you'll dramatically increase the chances of winning the game.