High Yield Investment Programs (HYIP) Explained

In the next few month’s i will be getting more into the lure of HYIP’s but first I will give some general insight into the world of High Yield Investment programs. The lure of HYIP’s is obvious “Get Rich Quick” Matrix’s, MLM’s and all pyramid scheme looking programs make allot of money because on the surface it seems like easy money.

Stopping these types of programs is an impossible task as long as poverty exists. It’s unfortunate but majority of people who fall for these things are people living below the poverty line. Usually they’ll tell themselves i have nothing to lose let me give it a try maybe i will lucky this time. Of course we all know how this story ends the HYIP takes the money and runs. Although a few years ago this was the common trend a change in HYIP market has become more evident.

The Change in The Ponzi Scheme Markets

The consumer even the poverty stricken consumer has become smarter in the later years forcing HYIPS to change there marketing strategy of business, this puts HYIP’s in a simular situation to Multi Level Companies in which now people start to ask the question “what’s the point”

When HYIP’s where at there peak around 2005 they were promising people returns of 30% – 45% on there money MONTHLY so of course many people wanted to get in, how it worked in those times is if I had $1000 i would send that money to the HYIP, that $1000 would supposedly be gaining interest i could withdraw portions of the interest as well as withdrawl the entire amount after i doubled my money. Now everything was looking good reports were that people were getting paid.

But of course you know most of these reports were made up and when people who invested all this money found out that there was no money well then the bandits ran off with the money. It’s one of the oldest tricks in the book but when people are desperate for money they will do anything.

The HYIP change

the change in the HYIP industry is people generally because HYIP forums are now able to get a glimpse and a better understanding of sustainable HYIPS people can now tell based on percentage what type of HYIP is sustainable and what type is very risky to get into. Because of this from my point of view HYIP’s sound comical. The old saying “if you don’t know what to do with your money there’s someone who does” should seem a bit more clearer to people but my guess is it doesnt.

The HYIP Lesson from my perspective

Reading about HYIP’s what i learned is Advertising & Marketing is a major key to success online. in 2004-2005 what happened was some people who probably knew a thing or two about internet marketing devised a plan to scam people out of millions of dollars(which they did) They were able to do this because of there understanding of internet marketing as well as understanding what people online wanted at that time.

I know the above statement might sound tough to swallow but that’s the truth and that’s a major reason why people get scammed online, or a major reason why people never make much or any money online. It’s because they refuse to learn or understand Internet Marketing. To me falling for or joining a HYIP under any circumstance is dumbest thing to do. Allow me to put it in a different perspective what makes the person(s) behind the HYIP websites any smarter than you? what makes you think they know something you don’t know? What makes you think they have the ability to multiply your money? and finally what makes you think they will turn your $100 into $200?.

The answer is Internet Marketing.

If I were to open a HYIP(which I would never do) I would find my target market and create a website to cater to there beliefs. Like it or not many people are sold once they see a pretty website lol. So i would make a pretty website pay some one to decorate it with words that make you trust me and then BAM sit back a watch the money roll in.

I would then use SOME of the money from the new members to pay the old members i would also pay people including forums and affiliate marketers to write reviews about my “HYIP” from that point if someone is DESPERATE they’ve already been convinced., so they will try there luck and from that point forward i am in the drivers seat. Also understand not everybody complains once they get scammed. Most people are ashamed are scared to report this.

Also think about it who do you complain to once you’ve been scammed by a HYIP?. It’s like a drug dealer getting robbed by another drug dealer who is the drug dealer that’s just been robbed going to complain to. if he tells the police they everything gets messed up for everybody. This is why I don’t recommend HYIP’s, Matrix’s, Randomizers or MLM’s. because when you complain or say anything people will look at you like “so what?”.

Internet Marketing Explained

If you want to learn how to make money online I highly recommend getting into Internet Marketing. In my life i don’t feel nervous I don’t have to worry about somebody running away with my money. in my world everyone’s on an even playing field. Sure someone might take my affiliate checks and run but what good is it to that person plus I have a SKILL which is internet marketing so if this does happen i find someone else or even i just create my own affiliate program. I am in a negotiation position once you join HYIP’s you are no longer in a negotiation position your now in a submissive position you must wait or hope the HYIP pays you or continues to pay you. Also you don’t have any skills so if the HYIP up and leaves you have to go in search of another.

I’m not saying to try it or stay away i’m just making you aware of how things work online. i’m letting you know why and how people waste precious time putting there trust in somebody else. Of course this will go over most of your heads but at least i know i put this information out here for free.

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