WHAT IS HYIP?

HYIP, which stands for High Yield Investment Program is just what it sounds like, a program offering a high yield investment. HYIP's are offering probably the most profitable investments available today. Interest rates of up to 100% a month is not uncommon. In general the interest rates are ranging anywhere between 5 – 250% a month.

HYIP's are using different investment strategies. Some invest in stocks, others in property. There are even HYIPs investing in other HYIPs. Probably there are also programs that are not investing at all. These belong to the scammers.

Most HYIP's use different e-currencies as their way of accepting funds from members. Liberty Reserve is now undoubtedly the most commonly used payment processor by many of the programs. E-currencies makes instant and secure money transfers possible online and have very much paved the way for HYIP's.

The phenomenon of Hyips is growing bigger and bigger on the internet today. Every day new programs are being launched. Lots of people are earning fortunes investing in these programs.

Sounds too good to be true?

Well, while the statements above are not lies, they don’t give you the whole picture. Many program owners are scammers. Their only will is to run with your money. There are more scams out there than serious long term programs.Over the years large amounts of people have lost their money as a result of being involved in High Yield Investment Programs.

Given the fact that the HYIP industry is a very risky one, most people are very hesitant when it comes to investing in HYIP's – which is legitimate. However, not being aware of the risks is the main reason why people are losing their money. There is a great number of cases where people have thought they’ve found an incredible opportunity and gladly invested their entire fortune. When the programs later went out of business, the consequences have been devastating.

Although there are unserious players in all markets, the HYIP arena seem to have more of them than many other industries. The reason for this is the big amounts of money involved and the fact that it’s pretty easy to steal money on the net.

Taking both the negative and positive aspects of High Yield Investments into consideration, the conclusion is; If done right, High Yield Investments can be extremely lucrative.

This is where we come into play. We are constantly studying and researching the market. We are also investing in a number of HYIP's to be able to analyze them and keep track of their payments and their trade records.

The Volatile Nature of The Hyip Industry,The Investors & Newbies are also to Blame!!!!!

Today i will like to put a twist on my post.I have written many posts putting the blame squarely on the Admins.The fact is we too are also to blame.There are certain behaviours which we as investors tend to follow that usually may lead to the collapse of any program.These behaviours can be excused because of either past experiences or what they have been told about this industry.


It is a fact that the hyip industry cannot survive without the influx of Newbies who are used as the scape goats.Newbies coming into this industry for the 1st time usually get exposed via search engines such google, yahoo etc, but this is where the problem actually begins.These investors looking for geniune opportunities use Key words such as online investment,. funds,high interest etc. these searches usually bring up hyip programs which are already SCAMS.These programs pop up because of the similar names used for the searches, and many admins do this on purpose.A classic example is the disgusting scam program ORIENT INVESTMENT which has been online since 2006 which has been scamming newbies in their hundreds daily.Once they get to the website they are also exposed to the various fake monitors created by themselves to deceive these newbies and off course get directed to the monitors websites which has even worse programs offering ridiculous offers of well over 600% hourly LOL.But unfortunately many of these investors get deceived and get scammed over and over again, so as such the newbies cant be blamed too much for this.

These behaviours attributed to the newbies and investors alike are simply as a result of total lack of understanding of how the hyip industry works.


So what are these behaviours?

1) lazzy attitude of the investors:

Many investors are NOT willing to do alot of research about this industry by reading articles and posts put up by those who have gone through this industry and are quite experienced they will rather go with the wind and learn the hard way

2)Trusting the ADMINS & their programs

Its amazing to see how people can cheer lead a particular program blindly with so much energy when its a well known fact that all hyips are 100% ponzies and the key to success in this industry is timing and diversification? the classic example is the cheerleader of the collapsed program CHERRYSHARES, THOMAS HASLER(THASLER) and more recently the PARANOID CANNAN CANNY of the collapsing SAFE DEPOSITARY.

The fact is many admins are more than happy with such individuals and will infact pay them to continue cheerleading and eventually defrauding many more people with their help whether they are aware of it or not

3)wrong beliefs

Many newbies think they can win their case by posting negative comments about a particular program in the hope of getting their money back.BUT i tell you the truth investors are always at the mercy of the Admins if the admin doesn't want to pay you there is absolutely nothing you can do to make him pay.posting a negative comments on forums will only make the program collapse faster than it should but that again depends on whether the admin actually wants to close the program because if it doesnt, the program can last for a long time paying selectively a classic example was futuretrails and extraincome.Its always best to contact the admin 1st or better still ask your upline to help you because whether you like it or not your uplines opinion is more important to him/her than yours.It is only after that you are now justified to make negative comments for the sole purpose destroying the program but not to get your money back

4)Refusing to promote the programs you invest in

Many investors do not like to promote the programs they have invested in they prefer to sit and wait for their profit.BUT again i tell you the truth all hyips are ponzies and as such always require new investments for it to survive so its important to promote the program and by so doing collect your own ref comm which will help you recover your investment faster besides why will you want someone else to benefit from a program who has no investment in that program? or even the monitors most of whom are totally useless

5) Refusing to reinvest

Its only fair that if you benefit from a program and you are well into profit after getting your principal back, you should re invest so that the program can last much longer for others to benfit especially when the admin has shown to be ready to play the game fairly such programs as GORGON and ELITE deserve such favours


To sum it up always remember that the key to success is time and diversification.Always try to learn more about the hyip world and get a good upline who will be willing to help and advice you at any time.

PROTECTING YOURSELF IN THE HYIP WORLD....a MUST for the NEWBIE!!!!!

Saying that the hyip world is a MIRAGE is an understatement.the whole system built to favour just a select few causing misery on the people they were mean't to cheat..i.e the investors particularly the poor newbies.As if this is not enough there comes another group of individuals waiting on the wing to cause more damage....THE HACKERS....this is everybody's nightmare.it may seem like a story but believe you me, it isnt funny waking up and seeing your account empty or being unable to gain access to your accounts, at the same time getting various confirmatory emails of money spent from your account by the hacker.You only need to tell many of the ADMINS of various programs to go look in the mirrow to see who these hackers are.

So how can you protect yourself?

payment processors:

a) do not accumulate money on your e-currency account your money is safest in your bank account....these payment processors like hyips can collapse at any time as with the case of E-GOLD and strict pay.therefore only put money mean't to be invested, in your e-currency account

b) spread your money between different payment processors....personally i prefer Alertpay as my main processor because it is the most secure...BTW in recent weeks we have seen various admins whom in my own opinion are PATHOLOGICAL LIARS using AP as a reason to scam but i tell you the truth it is either they are just too DUMB to read the rules or they just spend most of their pathetic lives cooking up lies to tell without doing any home work.The fact is if an Admin is stupid enough to withdraw more than what he claims to provide within 24hrs his account will be frozen e.g if a program claims to offer 3% daily as its highest paying plan, then ON NO ACCOUNT MUST THE ADMIN TRY TO WITHDRAW MORE THAN 3% IN 24HRS ELSE THE ACCOUNT WILL BE BLOCKED.this is what has been happening so do not be deceived.

c) for each payment processor, have at least 3 accounts each only using 1 as your account for online transaction NEVER use the back up accounts for any transactions NOT even for exchanges

d)Never use your personal email to register either with a payment processor or hyip, create seperate emails for the different payment processors which should also be different from that used for hyips.delete all passwords given and store them offline...BTW never click on links sent to you from a spam email even if it appears to come from someone you know.the least you can do is to confirm from that person before deleting

e)Change your passwords regularly at least3-5days depending on how active you are using very strong passwords.Ensure you use all the protective security provided for you either by the ADMIN who usually will wish you dont use them as well as that provided by the payment processors e.g email alert, ip detection etc


f)Being an online investment opportunity it will require you being online a lot so ensure you have your pc/laptops well secure with very good antivirus and also have a mobile internet with you always when you are unable to access your pc as this can actually help to alert you early if your account is being tampered with

All this can appear hectic to do, but its a small price to pay to protect your hard earned money.

Tricks Of a Fraudulent Hyip Admin (PiggyBacking)

Today I would like to continue my discussion on the very important part of the online HYIP industry which many investors, particularly newer ones, are not that familiar with. It’s something which can somehow be misleading and put you in the very dangerous situation of believing that an online HYIP has a real source of income. I am talking about “piggybacking”, an issue that is often talked about among experienced players but rarely discussed by newbies.

So before continuing the topic let’s try to describe “piggybacking” in terms of the HYIP industry. A dictionary definition would be to take a ride on somebody else’s back. In other words for someone else to do the work while you get carried for free. In HYIP terms it’s the practice of accepting money from others and then redeposit it to one or more other HYIPs. So when you think you invest in one program you may actually be paying for somebody else’s investment in a completely different program. And you may or may not be informed of this. Confused? Let’s take a simple example that everyone can understand.

There is a program called “X” for convenience. It offers you 1% for 300 days and is paying perfectly well for many months. You actually start to believe that Program X might just be a real business opportunity because it continues for such a long time. You ask yourself if they have a real source of income, or if the admin is such an honest businessman because he’s been paying you for so long. Well, the secret of such perfect performance is simple. The admin of “X” heard about two other great programs: “Y” that pays 2% for 200 days and “Z” that pays 3% for 100 days. So the clever admin of “X” decides to simply reinvest your money in those two programs. He continues to pay you the smaller percentage of 1% as usual while keeping the bigger profits for himself. Now of course Admin X would prefer if you remain unaware of this. After all, if you found out then common sense would dictate that you leave Program X and invest directly yourself to Y and Z, right? I mean that’s where your money was going all the time anyway, so why not you make the profit generated by your own money instead of Admin X? So most likely Admin X will continue with the facade that he is a regular businessman with regular business investments. ForEx trading for example is a popular one, but there are many others. Some of which are quite colorful, even amusing, but unlikely to be true.

Of course, “X” program will be stay online and pay happily ever after. But only to the point when programs “Y” and “Z” collapse. Well, it could still go on for some time if only one collapses but eventually once the outgoing payments begin to exceed the incoming funds, the collapse of program “X” is imminent.

I guess now that i have explained what piggybacking in the HYIP industry is, it becomes clear how the collapse of such giants like GeniusFunds, GNI andPanaMoney affected a whole lot of smaller HYIPs, the admins of which were totally dependent on the profits paid by the bigger programs. That is how the so-called domino effect was created when not only the biggest programs but also a bunch of smaller piggybacking ones collapsed one after another causing the mess that the HYIP industry finds itself in today. This in turn was only worsened by StrictPay’s continuing failure to pay their members. That in turn created a further wave of losses to investors otherwise obediently following one of the most important industry rules – diversification.

But what is the purpose of diversification if we know that many smaller HYIPs reinvest your money anyway, often back into programs in which you yourself are already a member(!) and will collapse “like a domino” when the bigger one inevitably folds? That is why it’s imperative in my opinion for a better chance at success and be in profit you must define the leaders of current HYIP market and to keep most of your initial investment in them. And keep it there yourself! Not through some second hand (and second rate) piggybacking ponzi that simply collects the profits earned from your hard earned money, merely to throw you a few crumbs from the table when their done. It’s essential if you want to succeed in the long term, so keep reading blogs and forums and form a partnership with someone you know,trust and has more experience(your upline)in addition, your own opinion about the top programs that you consider the best and spread your own investment between them. What is the reason for handing your money over to someone else to do it for you when they reinvest in the bigger ones anyway, but keep the money that you should have earned?

This is how the things worked in the industry for quite a long time when giants like GeniusFunds, PanaMoney, etc. paid thousands of dollars to both investors and piggybacking admins which made everyone happy. The problem now is that after the crisis, new leaders in the industry are still to be established. Good programs are still out there. They always have been. They have just gotten a bit harder to find. So without any obvious leaders the small HYIPs still open every day but just can’t seem to make it last for more than a couple of cycles due to inability to reinvest into some more established industry leaders.

In my opinion, we will all see the revival of the industry once three or four leaders establish themselves which will inevitably lead to another procession of piggybacking admins following suit. As per usual you get the scraps while they collect the bigger prize, helping themselves in turn survive the traditional seasonal industry slow downs. The so-called “Black December” for instance which happens close to Christmas, or the summer holidays, neither of which are usually all that fruitful for investors. So until the industry sees such clearly defined leaders it remains hard to maintain the long term stability of smaller HYI programs either.

Sometimes though the admins of some HYIPs clearly state that they are piggybacking on other programs. A past example was FlipReturn, the admin of which boasted that they had unique structure and always re-invested in some huge programs. The program had its own newsletter in which the admin gave a short analysis of HYIPs and explained why she invested in one program or another.

Everything worked well, until they were exposed by MNO and some sharp eyed forum readers who noticed that payments from a totally different program were also being made by FlipReturn‘s admin.FlipReturn collapsed shortly afterwards. I must say that the admin of FlipReturn made it sound like they actually invested the member’s money though we never knew it for sure of course.

The admin went by the name Gertruida (or sometimes Gertrudia, she was never able to spell it the same way twice!) who was helped by a fictional friend called Klaus who opened his own investment program and blog. This consisted of one day posting stolen copy/pasted articles from copyrighted sources he claimed to be his own, then the following day a slightly more “original” article badmouthing me in embarrassingly sub-standard English(cycle repeating itself now with cherryshares). You needn’t be Einstein to figure out that the story finishes with the collapse of both programs. This happened at a time when the big programs they were allegedly piggybacking on were all still paying nicely. So the one instance where the admin actually admitted to piggybacking still ended like it so often does with any HYIP – in a scam.

Who loses money? You of course, the investor. What happened the admin? Well no doubt she and her “friend” survived with plenty of stolen cash and may well have re-emerged with a new name and a new website to once again launch a new piggybacking ponzi. All paid for by you of course. So even if an admin clearly states that he/she piggybacks on other programs and even give you analysis and reviews of the promising ones, please note that it’s all done just to make you hand over your money so somebody else can profit. The end result will still be the same as a blogger cannot be considered as an independent source of information when he/she either runs a program himself or has a vested interest in the fortunes another one. Just remember Edward Brown who famously tried to run his own program while simultaneously monitoring it at the same time. He tried to run a blog but he couldn’t put so much as a paragraph together without insulting the pants off just about anyone unlucky enough to stumble across it and it was peppered with the enough four-letter words to make a sailor blush. The most hilarious thing I remember was that he reviewed his own program (which naturally received 5 stars), and then asked me to tell him what programs he “monitored” had actually stopped paying when he kept every scam online in paying status for weeks on end! All the while his own joke program EdwardBrownInvestments remained top of the list while stealing from anyone gullible enough to join.

Piggybacking has been and will always be a part of HYIP industry. But remember that you can always make the analysis by yourself and put your money into a few leading HYIPs by diversifying it properly instead of entrusting it to some piggybacking experts that will promise you the sun, moon, and stars but only pocket the money that you should have earned yourself. How to do it yourself? By constantly educating yourself and only treating all HYIPs like the ponzies they are.

Again do not be fooled by any ForEx, silver, oil, fish farms space exploration, or whatever piggybacking stories spread by somebody who discovered a magic formula for eternal profits and wants to share it with you. Ask yourself why they are doing it and if there are some personal motives involved beyond his desire to help you. And if he knows the secret to making money and offers you to double yours in a few months ask yourself why he needs your money to do it. Because if you are able to double your money within a few months you would be a millionaire yourself in no time with only a minimal investment.

The answer is simple – to invest his own money in HYIPs is a risk he’s not willing to take. But if it’s your money he’s spending? Well, that’s a different story. He will gladly reinvest that for you. That is why it’s much easier for him to say – I’m going to deposit your money in selected HYIPs, piggyback for you, trust me, I’m an expert in this field, etc, etc, etc. The end result is this – you pay, and he profits. And in the unlikely event that you do ever profit remember that for every $10 you collect your piggybacker collects $40. Now, whose pocket would you rather that money be in? Well, I guess if you’re a professional you should invest and multiply your own money first before proclaiming yourself and expert and an “I’m always right” type of person. We all are not ideal people of course but with due experience I’m sure that you readers will be able to pick out the real gems and promising leaders in the HYIP world straight away and draw the necessary conclusions. Conclusions that will help you develop your own unique strategy and apply them to your personal needs.

so as you can see what ever nonsence is been said about me isn't new its a cycle and will continue to be so but the irony of it all is....it ONLY makes me more popular and MORE feared by Fraudulent Admins

General Misconceptions About the Hyip Industry

I will try to take a look at some of the popular myths, stories, and general misconceptions about the HYIP industry and mistakes which are made by even the most experienced investors on occasion. I hope that analyzing those myths and mistakes will help us all to make more money in this ever changing industry and understand how it all really works.
So let’s take a look at what that means and run through some of of the most common ones. I’ve numbered them first and then added my own thoughts. If you have anything to add then feel free to leave a comment.
1) “I know that 99% of the HYIPs are ponzies but I know that 1% are real businesses and I think I’ve found it.”
This is probably one of the most common mistakes made by investors. Of course it’s very easy, even preferable sometimes, to believe those tall tales spread by HYIP admins about their alleged business activities, especially if the program pays you for a lot of cycles. Even if at first you’re a bit skeptical, then you say to yourself that maybe there is something more going on, until finally you are ready to believe anything the admin has to say to you. The last stage means the admin has achieved his goal and can manipulate you any way he wants. It means you’ve swallowed his cover story hook, line, and sinker and now can be relieved of your money in some very shrewd ways. Your trust will now be an asset which the admin can exploit in his favor. So whatever you do, do not trust admins who try to convince you they are running a legitimate business. These people have their own agendas to make money from you which is the exact opposite of your goal – to make money from them. The mythical 1% of HYIPs are created in our minds to make you believe and trust to what the admins have to say. Overcome it and become wiser and don’t let yourselves be manipulated! ALL HYIPS ARE PONZIES – remember that and always be careful about whom you can trust.
2) “I know some admin from his last program. I’m sure that I can make money on his new one because he was honest and paid well in the past.”
Well, this is an extremely dangerous misconception and I’ll explain why. Sometimes HYIP admins deliberately build up a good reputation on one program and then refund everybody who was not in profit when the inevitable closure happens. Great! What’s not to like or respect about that you probably think. But this is where the scam really comes into play. The members of the previous program see that the admin opens a new one under the same name and rush to pour money into it, thinking that their principal is protected and that the admin is an honest and decent guy. The admin then closes his program as soon as he gets enough deposits which will be a pretty hefty reward for him even if he lost a couple of dollars from his own pocket in the previous venture when he paid refunds. This is where we again see the matter of trust which is being manipulated in a very sophisticated way. So draw your own conclusions if you are going to put money in such programs from “honest and trusted” admins and remember that everything is not what it first appears in the HYIP industry.
3) “I know that the admin is honest because he never ran any programs in the past.”
You can never be sure of that. In 90% of the cases every program is run by an experienced admin who previously ran one or more programs but will almost always tell you “this is my first”. But as they are invariably using made up names they cannot run new ones under the previous alias. It’s so obvious but it’s still not recognized by many investors. There are still some dishonest people who try to put a stamp on every single program and say that it’s run by a particular admin. Well, this is simply hilarious because if you had read my latest live chat you would see that in the opinion of one experienced admin with a lot of insider knowledge that the 99% of the industry is run by not much more than 30 admins who run all types of programs. To label some admins as natural born scammers is ridiculous because if we do this then we can just leave the industry because all the methods used by HYIP admins are very similar and are all based on ponzi schemes. So one particular admin is not always better or worse than another – he just has a different strategy.
4) “If I invest my money via AlertPay my deposits will be safe because if a program scams at least I will be refunded my original deposit.”
This is another popular myth widely believed by investors. Please note that investing via AlertPay is a good solution which cannot be disputed, and sometimes even for the wrong reasons. Because HYIP admins are required to verify their accounts and usually do so with fake documents to made up names. Therefore they cannot withdraw the money that fast via bank withdrawals or checks. Remember that when exchanging from AP to other payment processors there is a limited allowance and can be time consuming. Therefore, as a rule HYIP admins don’t worry too much about their AlertPay accounts and continue paying through them for longer than LR and PM. This doesn’t mean though that your funds are totally protected. Taking into consideration the nature of HYIPs you will be paid while the admin has reserves in AP as they don’t want anybody filing complaints prematurely while they continue the slow process of withdrawing what they can get away with. But when the account dries up the payments will stop and filing a dispute will not help you because the account is now empty. AlertPay will only facilitate refunds based on their ability to recover the stolen funds. If they are made aware of the situation fast enough and freeze the admins account, they can redistribute what they find there amongst members who were at a loss. It does not mean you get everything back. In fact it doesn’t even mean you get anything back if the admin managed to clear out most of the money before the scam became known. Filing a dispute is no guarantee but if you do get something from them you may have to wait for weeks if not months to see it. So please get rid of such misconception of the overall security of AlertPay deposits – they are better than LR and PM but not to the extent that many investors think.
5) “I’m sure that the admin can run only one program at a time so I will diversify my investments.”
Of course diversification into different programs is a smart move. However you must understand that there is always the possibility that you will be investing in programs run by the same person and they will all collapse. Take the very recent example of one admin running four programs at once which all collapsed on the same day. Imagine you invested in all of them! So be aware that one admin can run many different programs and try to watch out for the similarities. Do not be fooled, guys!
6) “If I find out an admin ran a particular program I will definitely invest in his other programs because I made a lot of money from the first one which ran for a very long time.”
This is also a pretty dangerous strategy that can cost you a lot of money. Take the example of InvestiMates, a program that ran for over 70 days back in 2009. The admin took advantage of the enormous support that was showed to him by his members after running his first program so “honestly”. He started another one with similar plans and concept called InvesTomato straight after the first one finished, all done under the same name. It’s no wonder that many investors believed his intentions were good and invested a lot of money which of course they never saw again. Blinded by their own unconditional faith in the admin’s capabilities of running every program for such a long time, they didn’t stop to think that there’s always room for something to go wrong. So please don’t be fooled by that. Remember that the same person can have both good and long-lasting and bad programs which could be hit hard by hit-n-runners, DDoS attacks, payment processors issues, or indeed any number of problems. The issue of trust can be manipulated in order to make you think that it’s relatively safe to invest in one particular program. An admin can even issue refunds to members in one program and after gaining their trust run another short term scam which will cover the expenses of the first program and then make him an enormous profit. So please be careful about that either.

The truth About The Hyip Industry

I was a witness to how the industry developed into the gigantic money making machine we saw 2009 when MNO became one of the most sought after sources of truthful information about online income opportunities. Now I am also an observer of the gradual decline of that same business with many people losing both their money and their faith in it. It’s very sad to see the industry in decline of course and that is true considering to what I heard from some HYIP admins stating that these days deposits into their programs are only a tiny fraction of what they used to be a year ago. Well, I can see it myself as many blogs and forums are dying out and the price of ads which is amongst the best indicators of the real state of things is incredibly low.    The subject of today’s post came to mind because of the continous shameful attempts by many admins to persuade investors that they are earning money with some real established business which of course is not true. And I’m not talking now about the ForEx investments that became so trivialized for the last few years with every second HYIP admin claiming to earn huge money there, but rather about the more sophisticated ways of trying to separate you from your cash with promises of earning big profits in casinos, silver, fish farming, sugar, etc.
I must say that the recent ways of claiming to invest into some most weirdest things in the world just make me laugh but the problem is that it can be taken seriously by some investors. A lot of people are seriously disillusioned by the current state of the HYIP industry and are then easily misled by some referral sharks trying to take advantage of that. They tell you they are helping you by guiding you away from the “traditional” HYIPs and bringing “genuine” business opportunities to help you earn online. But in reality none of these people are any better than the usual con men that are so prevalent in the industry. In no way is this helping the situation in the wider HYIP industry, only heaps more misery on investors by luring them into a false sense of community and a false sense of security only used by the most dishonest industry crooks. Acknowledging the general nature of how online HYIPs really work, going to some length to distance themselves from them, and all the while pretending to offer you an alternative which in reality is no more genuine than any of the openly “game” based HYIPs. That’s why such activities must be stopped while it’s not too late and not encouraged any further.
I have to admit that just a few years ago I too might have considered that some HYIPs really had some outside income just based on the fact of their longevity and the fact that they were properly registered. Well, I was so wrong about that and I think a lot of others also found out the hard way the collapse of GNI and GeniusFunds amongst others last year. They were considered by many as real ventures but resulted in the loss of significant amounts of money by some. As for registration and the company incorporation I investigated that last December, actually incorporating a company as  registered  with a serviced office, all  cost  well under a hundred pounds. It required absolutely no real personal information, in fact no serious questions were asked are at all, and it gives you perfectly genuine and legal status as a company director of your own business in less than 24 hours without having to get off the couch. The whole experience did little to enhance my faith in HYIPs or their admins but I was still hopeful that due to longevity some HYIPs might still be backed by real ventures. TakeNanoMoneyCorp – lasted for four years but still collapsed in the end, proving that previous results are no indicator of either future performance or real business interests.
The longer paying HYIPs in the period from late 2008 to early 2010 (such as GeniusFunds and PanaMoney) lasted for so long because of a general upward trend in the HYIP industry combined with investors trust and ability of the majority of the more experienced players to be in profit from well-organized programs. Although this had nothing to do with the genuine sources of income from that HYIPs as they all were ponzies, i.e. were backed not by real investments but by new investments used to pay to older ones. Take PTVPartner which managed to last for quite a long time, even though their legend of making money from a silica mine (which later yielded a gold mine!) was simply laughable. The admin never once bothered to back up his words with a shred of proof. Still that program managed to run much longer than most pundits would have expected (given their relatively high returns) because of the fact that things were pretty good at this time in the industry with an abundance of new investors supplying the money to pay earlier investors and more than enough left over to pay the admins. So why did they last for so long if they were not backed by anything real? What kept them afloat for such a long time? Well, that’s a theme for another discussion..
      However, let’s analyze the admins that are trying to stand from this crowd and provide some evidence of their alleged activities of some sort that supposedly should provide payouts to everybody in the long run as long as their “business” flourishes. Is it really true? Let’s take a simple example and see.
Suppose I’m a tomato farmer and I’m a professional in my field, meaning I can grow really nice crops and deliver really good product to my local market and sell them at a profit. I heard of HYIP industry where the website owners seem to make money out of thin air (ie your money!) so I’m entering this market to make you a tempting offer: I’m going to grow tomatoes and sell them on the market for you and share part of my profits with you in return for you financing my business. Sounds nice, right? I have everything with me to prove that I’m really growing tomatoes and sell them in my local market because it’s my hobby and nothing more. You can’t say I’m telling you lies because I will provide you with some photos of my produce and me with all the gardener’s tools in place. I can answer all your questions about the tomatoes as I’m thoroughly into the subject (if I don’t know more I can always consult Wikipedia, lol). And you can’t blame me for anything because I really grow tomatoes for the market. The thing that you cannot prove is whether I really take your LibertyReserve and PerfectMoney and use it to manage my business. So I’m actually using your money for my personal needs and telling you what I know about growing tomatoes. Because it’s my hobby and I know something about it and it gives you enough comfort that you can sleep at night safe in the knowledge that your money is actually working for you in a real business.
The only thing you can’t understand is why this farmer didn’t take a loan from the local bank. It would surely be given to him provided his business plan was good and he was going to repay the loan at a vastly reduced interest rate to what he’s offering you. You are wondering why this farmer needs your e-currencies while he can find other sources from the offline world to finance his profitable business as he offers you nice returns on your investments, doesn’t he? But you try to forget about that because you think the farmer is honest. Because you were convinced by his photos and videos of him growing tomatoes accompanied by the “analysis” of a couple of referral sharks telling you that this one is different. Maybe they even believe it themselves, I don’t know.
There is nothing wrong in asking yourself such reasonable questions as you’re going to invest big money into this project which was nicely presented to you as a real venture by some established “experts”. So my tomatoes (in reality “ponzi”) business is developing nicely and I harvested some good money (sorry, tomatoes, always confusing those things, lol) at the end of the season. On the next season, inspired by the results and the money received from the previous venture I offer you even better returns but I will need to hire more staff and expand my business. You trust me even more new because you received your payment from the previous round. But this year was not as good as the last one. There were some unfavorable conditions affecting the crops: too much heat, too little rain, and the worst thing that I never expected – lightning from a recent storm burnt down my shed where I kept all my tools and seeds. So what to do next? Of course I will come to my dear investors to ask for help with that and might even show you some pictures of a burnt shed and ask for more money to restore my business from scratch. Your old deposits will all be nulled but I will compensate you for that by offering even higher returns for the next tomato season which will definitely be more successful than this one. And so another round will start. But perhaps I will just keep your money for myself this time. I’m bored with tomatoes now but I’ve got plenty of money. Don’t worry though, I’ll be back to you later when I come up with another real business idea.
I can go on with more story lines here than the lonely tomato farmer in urgent need of e-currencies to expand his business. But I guess you get the drill – it’s how the industry works and especially the admins who try to persuade you that they are for real but for some reason they need virtual anonymous e-currencies from you instead of getting a loan in the local bank. Why don’t they do it? Because they are aware that in the real world they will have to repay their debts and that with a real bank no excuses will be accepted and a lot more difficult questions will be asked. Posting a youtube video is simply not good enough to get money out of a real financial institution you know. So it’s easier to trick online investors who will trust the farmer and might even defend him and even protect him from the attacks later on hoping to get the portion of their money back. (“Of course it’s real” they’ll tell you, “just watch the video”. Right.)
This idea of turning your hobby into a profitable HYIP business is not that new so I’m not afraid to say it for that reason. Kevin from XagaEnterprises was the first who implemented this and took it to the next level by shooting videos and posting pictures of the many casino comps that he was allegedly cashing in. Well, I believe it could well have been his real hobby which he turned into a profitable business. But I bet he made a lot more money scamming the investors in the end than from his hobby (if even it ever really existed).
That is why I will never stop repeating that even the most confidence inspiring HYIP admins with their photos and videos (but more often just mere words) should NOT in any case be taken seriously. I think we should really totally segregate HYIPs and real business. I can tell you with 100% certainty now that all the HYIPs are ponzies or at least ponzies for the most part. They can generate some money from their hobbies but it will be just used for their personal use. The most convenient thing for them is that they can start any number of subsequent tomato, fish farming, gambling, silver, sugar, fuel, or whatever business with money from their previous scams (oops, “real” businesses). And they will always find a grateful audience as there will be always some investors who prefer to be fooled by your nice pictures and nice words and be hypnotized by the idea of making risk free money with no effort from thin air.
You may think I’m too harsh and you may prefer not to believe what I say. But this is exactly how things work in this industry. There will be always the admin who will try to mislead you by composing a nice fairy-tale of the real business backed up with the golden opportunities which you simply cannot miss. Then after losing your money you will finally realize I was right but it will be just too late and you will be bankrupt as your money will be divided between the tomato farmers and the referral sharks. But anyone who presents you with an online HYIP that uses anonymous payment processors and tells you it’s a genuine business is either lying through their teeth or just hasn’t got a clue about what they’re talking about or how the real world works. Trust me, you’ll see that I’m right about this eventually.
That’s why I always emphasize the necessity for a potentially successful HYIP investor/ player to treat HYIPs as a form of gambling and only invest what you can afford to lose. Please do not believe in all the stories churned out on a daily basis to deceive you by dozens of HYIP admins and their cheer leaders. Believe me I was in the same position as you when I just started in this business. But the sooner you admit the fact that there is no real income in the HYIP industry, just a redistribution of funds between members, the better. Unfortunately you do need to be bit of a bit cynic in order to survive and possibly make profits in that industry.
I’m aware that it might be pretty tempting to believe such investment stories about growing tomatoes and other stuff. However, at this point you should be smarter than the HYIP admins and that means that you cannot trust any HYIP which will scam you at some point anyway. Tomatoes cannot bring you good crops every year and sometimes even despite of the admin’s genuine best intentions failures will happen. So be ready for that and do not lose your feeling of self-security. Be on the safe side and don’t allow either the admins or their promoters to brainwash you! As you probably noticed I rarely make comments to the interviews submitted by HYIP admins nowadays, because 90% of the information usually posted is either simply not true, too good to be true, or too unverifiable to be considered as the truth. That’s why I liked to deal with such admins like Roger Miller in the past who will be straightforward with you and tell you the truth about HYIP gaming and the risks it contains. It doesn’t make it any easier to accept the losses, but at least nobody lied to you.