What are HYIPs [High Yield Investment Programs]?

HYIPs are supposedly a way of making lot of profit from our money. These programs are like online investment banks where you can get lot of profit if you deposit your money with them.

[Please Note: Read all the article to find the real truth behind HYIPs: And see if they really pay or may be these programs are just scams?].

[All this page content is based on the information I collected from the internet. It is based on the information I got from few highly trusted websites. I personally have no relationship of any kind with these HYIPs: I never used such program and will never do it in the future and this article is not against any/all sites who offer such services].

I heard about HYIPs few years back: and obviously I rejected to even go into the details about what they are and how they work. I never knew the real truth about these programs: I just knew that in order to participate in these programs one need to invest some money.

When it comes to a opportunity that involves investing money from my pocket: I always ignore such them. I don’t want to pay a single cent to anyone in order to earn money online.

Few days back, I saw a forum that is totally dedicated to HYIPs. People in that forum were talking about different types of programs.

That is when I decided to find more information about: what HYIPs really are.

A straight forward fact:

If you are looking for a simple answer to this question:

Shall I invest my Money in some High Yield Investment Program?

Then here is a short and straight answer:

You should not.

Why?

If you search the internet for the word “HYIP” you will find some results showing from trustworthy websites. These results will simply state that all HYIPs are nothing but SCAMs.

If you want to know more information then keep reading this article.

What exactly are these programs?

[What I am writing now is what different companies say about their programs. How true is this information? That will be explained later in the article].

HYIPs are simply some schemes where a company promises to give high profit in return if someone deposits money.

The profit rate is very high: for example: there are schemes where companies promise to pay something like 200% profit or even more, after 30, 40 etc days. So it means that these companies are capable of doubling your money in a matter of just few weeks/months.

The profit varies.

For example: some pay a daily profit of 1%, 2% etc percent: and I even saw a company giving 150% profit daily.

It looks like these companies will do anything in order to attract victims for their Scheme/Trap.

So, if we believe that a HYIP [with 200% profit rate] is legit then if we deposit $10, 0000, we will get $30, 0000 just after few weeks. Yeah right… : )

Minimum And Maximum Money Deposit:

There is a minimum and maximum deposit limits which these companies have. The minimum deposit limit is usually as low as $1 and the maximum can be unlimited.

I searched in Google and found a site that has a very long list of HYIP websites. I think there were like thousands of such sites in this list.

I tried to search for a single scheme that offers some little-scammy looking profit rate: after searching hundreds of companies, I saw only one such company that offered something like: 10% Profit One Month.

Now I do not know if this means that:

The investor will get 10% profit every day

Or

Investor will get 10% profit in a month but this profit will be given to the investor on daily bases.

If first assumption is correct then the investor will get approximately: $400 after one month from a $100 investment.

If the second assumption is true then investor will get $110 in a month from a $100 investment.

I think the first possibility is true as the second one seems less attractive : ) and thus cannot be called as High Yield Investment Program.

I am writing all this information because later, we will use this information to see if it really is possible for a company to give such profits? And are HYIPs legit or Scam?

What do HYIP offering companies say about their source of generating profits from our money?

Nowadays, there are many ways via which we can earn little bit of money online. For example: we can earn via doing business in stock markets.

We can generate income via buying/selling shares or we can just buy shares and then earn money via companies’ dividend.

Other ways to make money includes Forex Business. This involves dealing with different kinds of currencies.

So the HYIP offering companies usually say that they invest the money in Stock Markets, Forex and other business where they get very high profits/returns.

Now: let’s talk about these companies and the scam involvement:

Without going into any details, just think for a moment: a company is multiplying our money by 2 and then is giving it back to you along with our original investment: that will be a 200% profit. For every dollar you invest, you get back $3.

Can your mind accept this offer?

I would say NO

Just think about it: if a company is capable of producing this much money, then why is this company doing work for others when they can simply multiply their own money?

For example: assume that a person has $100,000: he then decides to use some of his money to start a company that will offer HYIPs.

But why not this person simply uses his own money to produce 200% profits for himself instead of doing this work for others?

Yeah, you may think that this person is looking for more money in order to invest so that more profits can be generated: but here is the problem.

This person is already giving 200% profit to a customer in 30 days time period. What possible profit is he getting for himself in such a short time period?

If we assume that making 200% profit in 30 days is possible: then this person must be making 200% ++  profits as he needs to make some money for himself too.

Let’s assume that this person is making 220% profits per month and he gives 200% to the customer and gets 20% for himself/herself.

Now, if a customer invested $100: then the customer will get $300 after 30 days and the company earns only $20.

My point here is that: [considering that making 200% profit is possible]:

Why make HYIP offering companies when the owner of such companies can make lot of profit for himself using his own money?

The company is earning very little money compared to what they give to their customers. So instead of investing money in starting a HYIP offering company why not the owners simply invest this money in their highly profitable business?

If a person say that he is opening a HYIP offering company because he does not have significant funds in order to invest and make profits: then are such people allowed to open a company of their own?

What about the trust of this company? The owner has few dollars in his pocket and he is opening a company that is capable of producing 200% profits.

If the owner has no money of his own: then how come he is capable of producing such un-logical profits?

Will you trust a man who have few dollars in his pocket and is talking about making thousands of dollars for you using your money?

Now some facts:

Stock Market Business:

Let’s assume that a company that offers 200% profit is investing money in stock market.

Assume that Person A deposit $1000 in this company. Now the company has to pay $3000 back to the Person A after 30 days.

In order to produce $3000, the company invests $1000 in stock market. The company buy shares of, let’s say, Tomato Farm Limited. In order to produce the said 200% profit, the shares of Tomato Farm Limited needs to increase 3X percent. That is: if one share costs $10, then it has to reach $30 within 30 days.

Can such thing happen at stock markets?

Of course not: Stock Market business is not a game where share prices vary that much.

Wait a minute: let’s assume that price of Tomato Farm Limited shares increased by 3X within 30 days: but what about the next month? How will the HYIP offering company produce profits after Tomato Farm Limited shares reach $30?

Will the shares increase further to $90?

Stock market business is not a joke. Price varies only little bit.

There is one other way to make money at stock markets. That is: to do day trading.

This is to buy shares every day, and sell them as their price go up. I am not sure if such trading is allowed in major stock markets.

Even with day trading, there is no way to make 200% profits with in 30 days.

In order to earn this much money with day trading at stock markets, HYIPs offering companies will need a time machine that can tell them the future price of shares [however, such thing is not legal]:

Other than this, it is not possible for anyone to earn 200% profits at stock markets. There is no way to make this much profit every month:

I will say: it’s impossible.

Forex Business:

Forex business is much like stock markets. A person can trade in different currencies. This can be done offline or online.

For example:

A person can buy British Pound if US Dollar is strong against Pound. When US Dollar gets weaker against British Pound he can sell Pound to get some profit: And then he can buy some other currency which will be weaker against US Dollar.

Theoretically, Forex business sounds so easy to do: but practically, it is much more difficult. Instead of gaining money, people [new comers] usually lose it.

However, whether a person is a new comer or is a highly skilled and experienced Forex expert: one cannot produce 200% or such kind of profits from Forex Business, no matter how experienced he is in this work.

No one can make so much profit: especially when this has to be done every month.

200% is not possible in anyway.

Is there any other Business that produce 200% or such profits?

If there is some [legal] business that exists in this world where we can get 200% or such profits in 30 days, then why do we not know about it?

Nowadays, is anything secret from the media?

Can such a profitable legal business ever exist?

What if someone tells you that a HYIP offering company actually gave him the promised profit?

Yes of course: there are many reasons why you may get the promised profits from HYIP offering companies.

What? It means that HYIP offering companies are actually legit?

The problem is that:

Many people invest very little money in HYIPs, only to see if these schemes actually pay or not. These people do not mind if they lose $10 or $20.

Now, the scammers know very well about this situation. If you take a look at the history of scamming, then you will find many scams where people invested little money in some scheme and they actually got high profits.

So these people simply re-invested the money over and over again. People sold their houses and their businesses in order to invest more and more money.

In the start, scammers may pay the profits only to win the trust of people.

So if someone told you about a company that actually paid him the profits or if you have already tried a company and you got the profits: then before you invest more money in this scheme, I suggest you do some research.

Just remember that there is no secret ways of making big money. If you are willing to give money to other people to invest it in Stock Markets, Forex etc: then why not you invest this money in different businesses yourself?

If someone tells ME to invest even a dollar: and promise me to give a big fortune in return: and also show me lot of solid proofs: I Will Still Say NO.

OK, but what are Ponzi Schemes?

There are some HYIP scams in the past where scammers used the investor’s own money to give profits. For example: if I invest $100 and I am suppose to get 50% profit in 10 days, then the scammer will simply pay me $50 from my own money.

They do this to make people believe that their scheme actually works. Many people fall in the trap and they simply invest more money in the scam scheme.

One other scam scheme that many have successfully tried: is where scammers pay the profit to old investors from the money they get from the new investors.

The scammer keeps getting money from new investors and in order to attract more victims, they pay out profits to the old investors. This profit is nothing but the money that scammers get from new people’s investments.

The above mentioned two scam schemes are simply known as Ponzi Schemes. The word Ponzi is named after a person [Charles Ponzi] who actually made millions of dollar via such scheme in USA in early 19’s.

People call HYIPs: simply as Ponzi Schemes.

Even if a company is paying reasonable profits, people will not trust this company because of the numerous scams on the internet.

In fact, if a company is paying reasonable profits, then I guess we cannot call it a HYIP as it is not paying high and unbelievable profits.

Conclusion:

My suggestion to all:

If you get scammed, there will be no way to reverse such event.

Nowadays, scammers are everywhere and they are hunting for money via scamming innocent people.

I mentioned a list of HYIP offering sites earlier in this article: in this list, I visited the first listed company to see what kind of site they have.

When I opened this site, I saw on the front page that, the company was out of business. The police sealed everything: their bank accounts, offices etc.

This is what was written on the homepage: I personally believe that this company had no offices: they would just have some small room: where some scammers were joining in to scam people all over the world.

You can see that the future of HYIP offering companies is not so bright. Sooner or later, they will get caught by the law agencies.

I also did some investigation about the other small companies. Majority of these companies were simply sites that were created un-professionally by some teenagers.

Creating a site costs very little money. A 10 years old boy can build a HYIP offering company within few hours.

There are some people who actually want to pay a reasonable profit to the clients. For example: in my country, banks approximately give 7% profit per year on the money that is invested in a savings account.

Some countries have high interest rates where some have low interest rates. So people in countries where interest rate is high: they think that they can take money from people [who are from countries where interest rate is low] and they can invest this money in their bank accounts to get higher interest rates.

Unfortunately, this kind of business is not good.

The first reason is the Tax Regulations and other Law related problems. I am pretty much sure that Law does not allow this kind of business.

Secondly, people who want to do this kind of work: even if they are not scammers, they are still individuals and not some well established company.

You cannot just trust a man on the internet only because he has a website that offers HYIPs.

Also, countries where interest rate is high: Inflation will be high too. The value of such currency will go down against US Dollars and other currencies. These things make the last mentioned scheme not possible to work.

If you just want to earn money online then there are many available options.

For example: you can do Stock Market Business or Forex Business.

In fact, you can even earn money without investing anything from your pocket.

Why invest money when you can earn without any kind of investments?

For example: you can do different kinds of online jobs at freelance sites. These jobs include data entry, copywriting etc. Many freelance sites are free to join so you will be investing no money from your pocket.

If you are interested in finding more information about freelance sites, then you can read this: online jobs guide.

So, my suggestion to all people who want to make money with HYIPs: is to consider other options as most probably, there are no genuine or legit HYIPs on the internet.

Save yourself from being scammed. Do not become a victim, no matter how attractive or reasonable the profits are.

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