For those of you who don’t know what HYIP is, HYIP stands for High Yield Investment Program where you get very high returns on your investment. Nowadays there are hundreds if not thousands of these companies offering such services and they even let you start with as little as $20.

The average return on your investment offered by these companies range from 1.00% to 4.00% daily and the money is earned during business days only, not holidays or weekends. They also provide you with the opportunity of reinvesting the money you’re earning automatically in order to increase the principal amount thus earning more money.

However the money you put into the system you won’t be able to withdraw it until the lock in period is over which is anywhere from 150 days to a year.

Now what is the likelihood of this being a legit opportunity to make money online?

Well I’ve done some extensive research about these companies offering such services and it’s interesting what they do, by the way do you know what a ponzi scam is?

To make the story short a man named Charles Ponzi scammed thousands of people including close friends by promising to double their money within 45 days. As it turns out Ponzi was not generating any money at all so he started paying the initial investors with the money he was receiving from the new investors, not out of profit. Soon enough his business went straight to the ground and he made more than 40,000 people lose an estimate of 140 millions.

Now based on the research I’ve done I’ve discovered that most of these companies offering the so called High Yield programs are nothing more than Ponzi schemes, they simply pay the initial investors with the money they are receiving from the new investors in order to keep the business running until the time is right and they have enough money, once they have all the money they wanted they vanish, taking all the investment money(including yours) with them.

Conclusion: One must be very careful when investing in these high return programs since there is a high risk of losing it all. In the event that you decide to give one of these programs a try I suggest you to start with a very low amount, perhaps the minimum allowed which in some instances could be as low as $20. Wait until you’ve doubled the initial amount, take it out of the system and you can now play with the money remaining in the account without any fear of losing it since you’ve already recover your initial investment.

I just recently put some money into one of the programs I’ve been researching for some time now and seems to be in good standing with their investors and has been around for quite a while. Within a couple of weeks I will write a post about my experience with them and whether or not I recommend them.

Popularity: 42% [?]

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.

Most Popular Posts

• Is E-Currency Exchange A Real Opportunity To Make Money From Home?
• The Data Entry Scam Part 2
• Don’t Know Where To Start Your Online Business?
• Don’t Fall For The Paid Survey Scam
• Is Envelope Stuffing A Real Oportunity To Make Money From Home?