BEWARE SCAM HYIP PROGRAMME

2011-08-20T08:05:00.000-07:00

BEWARE SCAM HYIP PROGRAMME

Definition:

An Hyip is a High Yield Investment Program. Often ponzi schemes and just plain
old scams disguise themselves as HYIPs, however, they are not. True HYIPs are
programs which really do take in investments and use the money to fund an idea,
or project. Until recently (last 5-7 years) "HYIP" has become a synonym for
"internet money making program", however that is not truely what it stands for.

Be very carful when investing money online. More than likely you will get
scammed. Don't invest more money then you can afford to lose, and always treat
Online HYIP investing as a gamble instead of investment.

HYIP Forums:

There are several Hyip forums. The one we recommend is Talkgold simply because
it is the most opened and even keeled as any of the others.

What is an Example of a true HYIP?

Bob and Tom get together and have an incredible idea to create an online forum
for debating politics all over the world. They know they need appoximately
$50,000 to create the site and promote it. They figure they can earn
approximately $40,000 per year once things get started. So this is what they do.
They offer an HYIP which pays out 5% monthly for 40 months for a total of 200%
return. They take in enough investors to allow them to reach a pot of $50,000.
They then pay out $2500 per month to their investors for 40 months, until they
pay back $100,000. After the 40 months the investors are all happy, and Bob and
Tom now have a great business producing residual revenue for themselves.

Real HYIPs are Risky, Fake HYIPs are even Riskier:

Real HYIPs are risky simple because it is very difficult for a company to pay
out such high yields without being involved in a risky business. Take for
example the Political Forum hyip we discussed above. Bob and Tom will never know
for a fact that they can get their site generating $40,000 per year in profit.
Many things can go wrong, meaning investors may not get paid on time or at all.

Fake Hyips are of course risky because its a timing game. In any scam, the
scammer will eventually run off, so you will eventually lose all your money if
you keep reinvesting it. You have to time things right and get your initial
deposit out asap in these types of programs.