Many prospective participants of high yield income projects think about where the organizers take such big money that they can regularly pay very serious interests. Incomes, surely, do not come from nothing. In serious HYIP experiences managers, professionals developing and realizing many high income projects work over the effective investment schemes.

So the main sources of incomes in High Yield Income Programs are the following:

Investments in FOREX market.
Trading of stock of different companies on international stock exchanges.
Participation in different commercial sweepstakes.
Investing into high-yield business
Import and export of scarce goods.
That means, actually by accumulating money of the participants, the programs leaders use them as their floating assets. Then by investing in high-yield projects and actively using the off-shore status they create the profit not subject to taxation. As the result there are sums enough to support the HYIP activity and to pay charges to the investors, as well as to further expansion of the program.

People distant from complex economic processes may think it is unreal that over a month the amount of the investment may double or even triple. An experienced investor always may predict which investment will bring profit and which will not. Having wide knowledge and serious experience he/she is able to easily make profit from price fluctuations to some goods.

Many investors have made huge fortunes on the currencies rate fluctuations. Trader who knows the specifics of currency market over just few hours may double the invested capital. For example, trader has 100$ and he/she is going to speculate for Euro fall and long for Dollar. Trader takes 9900$ no-interest credit and sales 10000. Then he/she buys Euro at the rate 0.9755 and in a few hours resells it at the rate 0.9845. Then he/she pays off 9900 to the broker and the pure profit of the investor is 90$. So the deposit increases 90% less than in 24 hours.

Surely, for an inexperienced investor an attempt to play for currency rates fluctuations may result in financial crash. Instead of prospected profit he/she will bear significant damage. Actually, the role of all high yield income programs is to create some initial fund of money from investors contributions and then using various economic schemes to distribute it among profitable projects. Within HYIP there is no industrial processes, projects managers do not just manage your capital but help you to multiply it. HYIP is an agent between a private investor who does not have possibilities and knowledge to effectively play on the market fluctuations and high yield economic formations.

Of course, besides for the currency rate play there are many other effective methods to invest money, for example, buying securities of organizations which work well in the developing countries. Such financial instruments are risky but the risk is compensated by their high profitability. Besides the HYIP leaders prefer to reinsure and place the part of the invested funds into securities of the highly reliable companies.

Good HYIP will never lie to its clients because high yield income programs are an ideal example of mutually beneficial cooperation. By effective management of the investors capital the program organizers get enough income to pay interests to the investors and have profit on their own.

The rate of capital circulation, for example, on FOREX significantly increases the circulation rate during regular business activity. In 24 hours one can perform several high-yield transactions providing every-day or every-week payments.

Is It Possible To Make A Living From HYIPs?

This is probably one of the most asked questions we get. “Is it possible to Make a living off of HYIPs?” The answer to this question is both “Yes,” and “NO”. Let us explain.

“YES” people can make a living off of HYIP investing. If they have the skill the drive, and the ability to recover from major losses. In theory, it is possible and often times probable to make a good living ($20,000-$50,000) per year in the HYIP arena. The problem is however, that in order to do this, the investor needs to take a major risk. Without the financial backing in case of bad investment decisions, many individuals do not and should not even consider making HYIP investing a career. This brings us to why this question can also be answered “NO”.

“NO” people can not make a living off of HYIPs unless they are extremely skilled, and are already in a good financial situation. This can be said however for stock market and bond market investing as well. If you have half a million $’s then sure, you can live off of the earnings you make in the stock and bond markets, or turn to the more risky HYIPs to earn even higher returns.

The point of this article is to show that usually if you are looking to make a living on HYIPs, then you probably won’t (and should not) be able to do it without risking a very large portion of your assets. On the other hand, those people who have a great deal of money and are not looking to make a living since they have more then enough funds to live off of, are the people who can make a living off of HYIPs. If you are desparate and looking for quick cash, then you should not be investing large sums of money in this arena, however if you are wealthy and looking to increase your wealth and have fun, the HYIP arena may be right for you.

In conclusion, those looking to make a living in this arena are those that probably won’t, while those people who are not looking to make a living in HYIPs are usually the ones who do, but don’t need to.

How Long Should You Stick With A High Yield Investing Program?

Most people ask us when we feel is the right time for them to stop compounding/reinvesting and take their money out of a program. This is a tough answer to give. It all depends on the program that is invested in and the rate of return. Usually we recommend the following for the below 3 categories:

Type #1 HYIP – Low stable payers (Pays between 2-7% per week, 8-28% per month). This type of program is probably one of the safer types around. More likely than types 2 and 3, these are actually investing funds in Stocks, Forex, or other stable programs. This means that they will most likely be around for quite some time. Even if they do end up as a ponzi, their lifespan will be much longer then types 2 and 3. We recommend that you Invest a sum of money and then compound half of your returns until you get back your principle. Once you have recovered your principle continue to compound/reinvest but this time at a rate of 60-70% of your returns. If the program sticks around, you should be able to profit quite a bit. Once you receive 250% return we recommend that you stop compounding and look for another program.

Type #2 HYIP – Mid range paying moderately secure program (Pays 8-16% per week, 32-64% per month). This type of program is probably the most popular among investors. They feel secure since the payouts are not too high, but also feel like they are going to quickly make a return on their investments. Many of these programs actually invest in other programs, forex, stocks, etc, however many are just ponzi’s. We have found that most of Type 2 HYIP’s are a mixture of both ponzi and investment program. They more then likely invest members funds in a variety of ways, but most of the time find it impossible to pay out such high returns with the revenue they are making. This forces them to become part ponzi and use some of the new members funds to pay off old members. In the case of the Type 2 HYIPs, we recommend you compound/reinvest only 20% of your returns until you get your principle back, then once you get your principle back you simply stop reinvesting and just let the program run it’s course.

Type #3 HYIP – High paying, relatively insecure programs (Pays Over 17% per week and over 65% per month). These are usually the programs which are more then likely daily payers. For example 3%, 5%, 10% per day or even more are offered. 99.9% of the time these are atleast part ponzi, and will most likely end within 3 months. These programs begin with the admin knowing that he will have to run a part ponzi program to succeed. It is nearly impossible to earn such high returns in a short period of time like most of these programs claim. The higher the daily return the less likely the program will last. If you dare to gamble your money in such programs, we recommend that you only invest one time and do not reinvest or compound your earnings. The lifespans of Type 3 programs are usually extremely short and those who invest right when the program opens are the ones who will walk away happy.

All in all these are just some of our opinions. Performance may vary. Stick to these guidelines and investigate HYIP’s before investing in them.

How to Spot a Bad HYIP

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. You can, of course, deposit your money with a bank, but the private investor rarely has enough initial capital to make a fortune out of the bank interests. That is why the only way out is to invest your money into high yield risky projects.

You should always be careful about the programs connected with risk. First of all you should do your best not to engage into false project or financial pyramid. You have to carefully study all program features and only after that start investing.

The situation gets more complicated because even the trustworthy projects fail sometimes. It happens, for example, when program leaders did not manage to promote their program right or played fair on the currency market risking all their funds.

There is a number of rules and peculiarities by studying which the private investor gets the possibility to minimize the risk. Let us consider them in more detail.

The nature of the high yield income programs is such that almost all of them terminate their activity someday. Pyramids programs fail losing all clients investments, serious HYIP paying off to their investors come to an end. Surely, all honest projects are developed in a very accurate manner and designed for a maximally long functioning term. But often the closure is connected with the objective economic reasons that are very hard to eliminate.

A standard living cycle of high yield income projects comprises four stages: pay-back period, period of growth, period of saturation and descent period. Here they are in detail.

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 projects 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 time the investment flow has stable growth, the program brings maximal profit and clients receive their interests regularly.

Descent period is a determining stage for further programs 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 dont 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 programs participants, register in new catalogues, post messages on forums and guest books.

Before you invest money in the project you got interest in, surely you need to analyze every aspect of the program.

Amount of regular money payments.

Investment limits.
Specifics of the activity.
Trustworthiness to program organizers.
Your impressions from the web-site.
Domain check.
Contract information.
Materials and opinions on specialized forums
Position in rating sites.
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 administrators projects.

The main thing is not to get caught by promises. If the program promises you every-day 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 programs incomes. As a rule, such HYIP are actually do business trying to effectively accumulate investors 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 elses pie. However, there are general schemes for all serious programs. The Ponzi creators rarely develop complex schemes because they wont 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 traders 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 projects 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 projects leaders try to stay anonymous. In the conditions of todays 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.

There is a formula that helps to determine the approximate lifetime of a project.

Projects lifetime= (SD + SH + KR) * (NO + NF + WD + GAR) * (NKI + SKW + SKR) *365 / ((KI / SV) * (KO + RT + 1) * (KS + STR)*100000)
Where

SD — approximate cost of design;
SH — cost of hosting;
KR — advertisement expenses;
NKI — presence of contact information;
SKW — compliance of the indicated contact information with the information given by whois service;
SKR — compliance of the indicated contact information with the real addresses and phone numbers;
NF — presence of forum, quality of its development;
KO — number of mistakes in web-sites content;
RT — deviations in text (if the content is stolen with different sites or written without giving any
consideration, the text will have incompliance);
KI — dynamics of growth of investors number during the first week of projects existence;
SV — sums of investments;
WD — information on business activity the program gets incomes from; subjective evaluation of data adequacy;
GAR — presence of guarantees;
KS — number of persons engaged in projects maintenance and support;
STR — place of projects accommodation;
NO — presence of office.

So you have done the research needed, made a provisional assessment of the projects reliability and are ready to invest your money. But before you invest your savings into a selected HYIP think whether you are ready to risk your capital. Will you regret the choice you made? Would it be better to spend the money on buying something good for your household? As weve mentioned before all high yield income programs are connected with a fair amount of risk and even once youve made a detailed analysis of the project you are interested in there are no guarantees that the program is reliable.

Remember the major rule in regard to HYIP: never invest all your money into one project. Develop your investment scheme for several reliable high-yield projects at the same time. Even the most serious project can unexpectedly close, not mentioning the multiple pyramids there are. Always keep an ace in the hole. Even if one of the projects gets closed youll have three or four other programs the profit from which may compensate the lost financial means and even bring profit.

By participating in several programs at the same time you actually insure yourself from losing money. It is very hard to imagine all programs analysis of which has shown the seriousness of the organizers intentions will get closed. When making your investment consider the fact the program may fail and invest in such a way that if it fails you get your income anyway. Try to minimize the risk.

In the most thorough programs the interests are sent to your account opened in an electronic payment system every 24 hours. Besides, reliable projects, as a rule, try to make an automatic reinvestment that significantly increases your profit.

It is very simple to count your provisional incomes. For example, youve invested some sum under 2% into an investment project for 365 days. That means, that not making any reinvestment you will have your money back in 55 days and since then you will earn profit. So when the term ends your income will be 720%. If you divide your capital into several parts and every part will be invested into different high yield income program, even in the event the half of the programs will fail or turn out to be fraud you will get profit anyway.

Remember to reinsure yourself in any case, even if you are 99% sure in the project. Even if you are promised the whole mountains of gold, even if all your friends and acquaintances recommend investing the maximum into the program — divide your capital into parts anyway and invest into different programs. Even the most honest HYIP when it does not overcome a crisis stage may fall down.

There is one more rule any beginning investor shall follow: never risk the money you are afraid to lose.

One more important rule for private investor says: do not invest the earned capitals into the same program. Every day for the project is a new step to its inevitable closure. As we have said before even the most reliable projects will sooner or later end their activity. When a resource of the high yield income programs exhausts, it gets closed. Constant expansion of the project is impossible. It is an axiom. That is why try to invest the earned money as effectively as possible.

As a rule, disregard of this rule is the reason for financial loses. Many private investors get greedy and once they receive some incomes they invest it again and again. And they do it till the project spends all its capabilities. As the result the investor loses; it would be good if he manages to turn his initial investment back. Distributing the incomes among new programs is the most effective way to minimize the risk.

Study the new programs, hold their detailed analysis, select the most prospective and honest ones and then invest the parts of your gained profits into them. In case your initial program closes you will always have the investments in other programs and you will be able to turn the invested money back and gain profit. The investors desire to follow the old path and receive the profit in one project can be understood but it does not correspond with the economic reality. The project that sooner or later will get closed inevitably comes to an end someday. You have to do everything possible that the termination of the program brings you minimum damage.

There is no sense to turn to HYIP to those private investors who wish to get rich at no risk. High yield incomes are always connected with high risk. High yield income programs participants cannot avoid the risk, it is impossible. They shall try at their best to minimize the risk. You can minimize it only by investing your capitals into different projects.

Invest into different projects and distribute the gained profits among new programs, even when you start working with this HYIP. There is no sense for the beginners to risk all their capitals. Many programs have a fixed entrance minimum limited up to 1$, 10$ or 100$. At first understand the functioning of the high yield income programs by playing small. And only when you feel yourself comfortable in the HYIP world and learn how to invest and reinvest money right, you can start playing big.

Remember, nothing venture nothing have. However, do not forget that if you risk recklessly you can be left with nothing. Follow all private investors rules and youll succeed. A reasonable risk is the foundation for survival in the changeable and unpredictable High Yield Income Programs universe.

What exactly is a ponzi scheme

Ponzi schemes or pyramid schemes has nothing to do with investments, business or sales. Simply because they do not trade your money or they do not sell you anything. The fact is that a ponzi scheme uses the money of new investors to pay out old investors. Some ponzi schemes are surviving a few weeks and some of them even a few months. But this is for sure they all go die after some time. Why? Because mathematically it is impossible to find new investors. Or sometimes the legal authorities find out the ponzi scheme and close it.

A true Ponzi scheme usually promotes what appears to be a real investment opportunity which investors may contribute to without actually being an affiliate, distributor etc. A pyramid scheme, on the other hand, usually requires that participants make a payment for the right to recruit other people into the scheme, at which point they will receive money.

There are a number of ways to spot a Ponzi scheme from a genuine HYIP opportunity. You can find many hyips on theHYIPs.net Firstly, be wary of schemes that offer a high daily percentage return. If a site offers you 40% a day on your investment, you should question where the funds will come from to make that level of payment. Secondly, although HYIPs often pay you for referring others to their schemes, these payments are often low. If you are offered 10% per referral it is worth considering if that may be because referrals are the only way for the system to keep going. Lastly, look closely at the site and its design and functionality. If you spot a lot of content that looks as though it has been simply copied from another website, or if the design and layout is particularly amateurish, it could well be that the organizers know that it will not be needed for long as the system is only a short term thing to make them money.

Be wary of anything that sounds too good to be true. It probably is if it sounds like it might be. Anyone that promises a guaranteed return in any amount of time is probably not legitimate. There is no such thing as a guaranteed return when it comes to investing money. And on any return there is no guaranteed amount that can be returned. So either promise is someone out to scam you. Common sense goes a long way when it comes to investing money anywhere.

There are several Golden Rules every participant of high yield income program shall follow. Disregard of these rules may lead to the fact that instead of the expected incomes the investor loses all his/her savings and turns out to be in debt. The Golden Rules are not just made up; they have been developed during years of participation in HYIP and are tested by the most effective method of trial and errors. Observing the Golden Rules you get a possibility to minimize the risks, maximize your profit and avoid fraud to the extent possible.

The first rule says: never waist more money than you can afford. Remember, there is sense to invest only extra money you usually spent on luxury items into high yield income projects only. Never risk the money you usually spent on first priority goods. It is very unwise to invest money into HYIP that are to pay your hosing bills. High Yield Income Projects are always risky and it is dangerous to risk the money you need to support yourself.

The second Golden Rule: dont be greedy. Do not allow the greediness to blind you. Even if you regularly get the programs earnings during several months it is not the reason to mortgage your house or take a credit under unbearable interest. No one can guarantee that the project well-functioning today will not be closed tomorrow. You may find yourself with nothing if you spent your money recklessly.

Do not believe the huge interest. As a rule, they show that the project is false or is a kind of pyramid. Remember, 30–50% of monthly income is a rather adequate percentage. If you are promised to be paid more than 200% of your investment, you can be sure it is fraud.

The third Golden Rule: never deal with spam. Even if the program provides huge referral payments never try to attract additional users via spam. It can only damage you and your project.

The fourth Golden Rule: keep your password information secret. The most frequent mistake of an investor-beginner is the use of one and the same password for different HYIP. So you give the offenders a possibility to get access to confidential information. It is even worse, when you use the same password in high yield projects and electronic payment systems. The offenders always collect passwords being registered in the users projects. After that they try to access electronic purses using them.

Creating your password think about making it hard to trace. Use the passwords containing several words containing symbols of different registers and numbers.

Finally, the fifth Rule: always analyze in detail the project you are interested in. Only by studying all aspects of the projects activity, by checking all information and analyzing additional information you may create a provisional conclusion: whether it is a fraud or honest business. If you miss the analysis stage and recklessly invest your money in the first project you got interested in, in the event it gets suddenly closed you would blame only yourself.

Do not disregard any of these rules. Only by observing them you may effectively minimize the risks. The investment market does not tolerate the investors who act blindly, try to play not following the simplest rules.