It is not easy to know where to look for information to identify the best programs. It is very important to remember that approximately 95% of all HYIPs are scams. Do not place all your money in one program but spread the risk by investing into several programs.
Check out all the HYIPs you are considering to invest in, before you invest any money on them. You can do this in the forums and see what others think about the programs. Always start with a check in the program's own forum to see what people are saying. Have they been paid without any problems? Does the admin respond to the investors and answer the questions correctly? One of the best general HYIP forums is TalkGold.com. There you will find very knowledgeable people who can answer your questions and give you tips about good programs.
It is very easy to be tempted by all these programs promising sky high returns in a short time. We all want to earn a lot of money in the shortest possible time. But you have to realize that it many cases the promised rate of return is unrealialistic. In such a case it is either a scam, and those running the program will take off with your money or it is a ponzi. A ponzi works as long as new investors inject money into the program. The yield to current investors is paid by the inflow of new investor money into the program. In other words, the program stops to work when new investments are reduced or stops.
You should use common sense when selecting a program. Is it likely that a program can provide the returns they claim? If for example the promise is a daily return of 40% for 5 days, you can almost immediately tell that this will not work in the long term. A Program can not generate such high profits day after day. Opinions differ as to what is a reasonable return, but anything above 2% a day, is excessive over time. That does not mean that a program at 2.5% a day can not provide a profit. If you invest at the right time you can come into profit before the program closes down. But I recommend to go with programs with a daily yield of 1% or less if you want to find the more stable and long-term investment. It is better if they have a variable yield and only pay on trading days. Then it is more likely that the program makes money from some form of trading.
There are two types of HYIPs - Public and Private. The percentage of programs that are cheating their investors is lower among private HYIPs. Therefore, it is a good idea to try to have at least some private programs in the HYIP portfolio. The problem is that it is not so easy to find them. Usually you must be invited by someone who already is a member. They often keep a low profile and do not advertise. In addition, a higher initial investment is need to join the program. Among the general programs you can easily find HYIPs with minimum investment of $ 1 while the private normally require $ 100, $ 1000 or more.
Here are some things you can look at when you evaluate a HYIPs homepage:
- Do they have their own domain name or is it run off a free account? If they plan to stay long and want people to invest their money with them, they should be prepared to spend money to buy their own domain.
- How does the homepage look? Do they use the unique script? Most of the big scam programs use a unique script on their websites, and it may be a sign of of a scam program.
- How high returns do they promise? Does it seem too good to be true? Then it probably is!
- Do they have a forum? A good program has a forum for investors to ask their questions and easily get support.
- Are they very anxious that you should vote for them when you got paid? It may mean that they need to bring in new investors to continue to pay. If so then it is a Ponzi. If they generate money from some form of trading activity, then they should not be dependant on bringing in new investors to keep paying existing investors.
- Send an email to them and ask some questions. Do they respond to them or not? How long does it take to get the answers? Do they avoid the questions and how is the tone of the letter?
- Read the terms and conditions properly. In some programs you may take out your original investment when you want, but in most it is locked in for several months. Many programs do not pay back the original investment and that should be covered by the yield. In those cases, the actual yield is lower than specified as a certain part of the yield will be needed to cover the original investment.
When you have found a number of programs you want to invest your money in, you should decide how much to invest in each HYIP. Spread your risks and put the more of your money in the most stable programs and less in the riskier.