The Analysis and a Choice of HYIP Programs
While choosing a HYIP program you should follow the following rules.
Rule Number 1
Never put all your money into one small hyip program, regardless of how good it looks, or how great you have been told the program is, especially if the only means of communication with them is via anonymous email. These programs if they have a website will usually have a free website from Homestead, Tri-pod, Geo-Cities, etc. This goes for almost all of the frauds, but can also apply to very professional looking websites that give you virtually no contact point information. If you intend to invest a large sum, then you should always make sure that the program in question offers some sort of capital security. In this case, you should also try to arrange a tete-a-tete meeting with the principals. If you have an up line sponsor, ask them if they have this information.
Rule Number 2
Carry out as much due diligence as possible on that particular hyip program. If you are coming in with $1 million, you will be able to satisfy yourself about legitimacy with irrefutable proof, because you will be dealing directly with the principals. Usually an investor with $100,000 can secure a program utilizing a sole signatory account, through an offshore trading structure, and be privy to more info, but this situation is not always the norm. As for the rest of you? Forget it.
There are no public registries, no BBB listings, no bankers or brokers who will confirm anything. For the small investor, this business is based on trust and personal relationships: you know me, I know 'A', 'A' knows 'B', who works with manager 'C', who knows the trade facilitator 'D, etc. You can only do the best you can with the information that is available on that program. Do not contact any regulatory authorities to see if any complaints have been made, as this may simply result in an otherwise sound program being shut down. Use the forums that are listed in the appendices to gather as much info as you can and make an educated decision. What you are looking for is impartial advice, which unfortunately is hard to find on the HYIP forums, although the Speculator Pro website is completely impartial, so make good use of it.
Rule Number 3
Once again do not put all your eggs in one basket when it comes to the smaller Internet based HYIP's. You should diversify by placing a portion of your investment capital into many different programs so if one venture goes sour you still have the others intact to produce income. Many small programs will close down. Funding two to three small hyip programs with large amounts is suicide. Focus on the overall plan, not on a program or two, unless you have found a single large hyip program that offers a good return coupled with capital security. Build your smaller hyip program list up to no less then ten, it may take time, but this is the correct way to go about investing in small Internet HYIP's. If you want to achieve a lot of success, get your mind off the investments you are in, and get focused on your plan. Your ultimate goal is to eventually fund 15-20 paying programs, as soon as some pay out you can widen your program list. Concentrate on the plan not the programs.
Rule Number 4
With the smaller programs, you should aim to recoup your seed money from any one venture as soon as possible. Take your seed money back when you reach 2-1 or 3-1. Remain invested with their money and not yours from that point on. Too many small programs start out fine, we get comfortable with them and start putting extra money in before the returns from the last cycle come back, and then they fail. Do not reinvest more money before you have been paid back, no matter how long it takes. A good rule to follow is to take your original capital back as soon as possible and only keep reinvesting half of the payout proceeds on each cycle.
Rule Number 5
Do not let large amounts accumulate in small programs; take smaller profits often. Even from the most stable smaller programs, take funds back often. Taking small amounts of profit along the way versus letting a larger amount accumulate before a program goes sour will allow you to see a profit instead of missing out on what you thought you had.
Rule Number 6
Do not jump into new programs right away. Truth is many hyip investment programs never make it through launch. Why would you waste your time promoting a program that had a month or two to go before you could ever sign someone up for it, assuming of course that the program even remains on schedule.
If it is good this week, it will be good next week or three months from now. Let the program establish a payout history with good customer service before investing money with them. With some exceptions, we do not join new programs right off the bat. If they are still around in another month and everyone who is participating is happy with the program, then it's time to take another look at it.
Rule Number 7
Do not jump the gun and start screaming swindle if a program experiences some problems early on. Allow some time for the administrative end to catch up with the trading and sign-ups, as enrolments escalate. Most programs with small administrative teams have no concept of how many people can enter a program in the early stages. It does not take long to get in a real pickle admin wise.
Just like in any other business, investing needs experience and a good nose. Believe me, both of them show up rather quickly.
Before investing money in a project interesting for you, it’s indispensable to analyze the following:
1. Return on Investment (ROI).
2. Partnership interests.
3. Impression of the program’s web site.
4. Contact information.
5. Reviews and comments on dedicated forums.
6. Life span.
Return on Investment (ROI)
First of all, it’s indispensable to evaluate your regular return, i.e. the percent on investment to be paid to you by the site’s administrators.
The main thing here is not to be easily imposed upon by glittering promises. If you’re offered as high as 30% per day, be sure – your are being cheated. An average ROI for serious HYIPs is up to 1-1,7% in terms of one calendar day, or 15-50% per month.
The ROI allows foreseeing how long a HYIP can get along under favorable conditions. Usually the HYIPs are divided into four categories:
• high-yield projects;
• average-yield projects;
• low-yield projects;
• “floating” rate projects.
High-yield ones are those whose return exceeds 60% per month. Under this category we usually can find projects offering short-term deposits of several days. Investing in such projects is fraught with high risks.
When choosing a project, one should put an emphasis on those projects, which extensively advertise themselves on forums, monitors, theme-based blogs. A lot of advertising – a lot of investors. That means that even if the project is just an ordinary Ponzi scheme, it can live long enough to let people earn good money with it.
The average-yield category includes projects with monthly ROI of 15-50%. It is the so-called “golden mean”, as with a profitability high enough their average life span is much longer than that of the high-yield ones. It is better to start investing in them after 1-2 months of their work. This would reduce your risk to fall across a scam only collecting the first investors’ money. If you see that the project is actively discussed and extensively advertised, it is possible to reinvest several times.
Low-yield projects pay up to 15% per month. Such projects are defined by a long-term work. But the deposit terms may reach 6-12 months as well. Investing in them is reasonable after several months of their presence.
“Floating” rates are offered by projects dealing with stock markets and Forex. The profit is calculated on the basis of the project’s own income. On one hand it reduces your risks, as the project provides reports and you can see how much it earns. On the other hand, your percent may be negative if the project loses due to his trading activity. Investing in such projects is comparable to entrusting funds to a trader, playing on stock markets.
Low-yield and “floating” rate projects have one more disadvantage. The HYIP investors are focused on higher profits, hence the projects with modest efficiency may simply fail to invite investments and will shut down soon.
Partnership interests
Too high partnership interests (refferal payments) should put you on your guard. Serious HYIPs are always open to collaboration, however their main goal is making profits due to an effective investment activity. Hence, if you are offered more than 10% on funds attracted by you, new customers are most probably used as the sole source of that project’s income.
The project’s website
The impression of the site is one of the most important evaluation criteria. Protection against hacking, private domain, functional and original design, effective and convenient feed-back means, of course, do not guarantee the honesty of the program’s administrators, however they point at their serious attitude toward the project, that a nice bit of money has been put in, and consequently they will do anything for their project to make it live as long as possible.
A primitive site, illiterate texts or texts copied from other resources are an evident sign that you deal with scammers. They know that the program will be down soon, hence they don’t spend money on an original design and informational filling.
Exception – some sites of long-lived projects, created 2-3 years ago.
Contact information
The more the are possibilities of feed-back, the higher the credibility is. However, the HYIPs’ owners often try to remain anonymous. In the modern business conditions it looks quite normal and cannot be considered as a direct evidence of fraud.
Reviews and comments on forums
Explore the forums dedicated to HYIPs. They are visited by lots of experienced investors. It’s especially important for beginners, who have just started dealing with online investments. Thanks to the communication on forums, one may reveal eventual disadvantages of the HYIPs interesting for him, learn an opinion of other people already taking part in the given projects. The HYIP forums are the source of the most updated and impartial information.
But it must be borne in mind that among the forums’ participants there are people who consciously spread injurious information about one or another project.
Analyzing the information provided by the HYIP monitors, you may learn whether or not the program in question is paying at the moment, how long it exists. But that data is less worth than that provided on forums, because there is no guarantee that the project which is paying properly today will be doing so tomorrow. Moreover, it happens quite often that the project pays the monitors, but doesn’t pay ordinary investors.
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