Introduction To High Yield Investment Program ( HYIP PROGRAM )

What is HYIP?

* HYIP stands for High Yield Investment Program. It is usually defined as any investment that brings in a higher rate of interest than your savings account, which at current interest rates is about 4% to 5% per annum (in the UK).

Legitimate HYI are usually based "offline" and are operated by registered companies. The minimums to get into these HYIP’s range from $500k to $10 million and upwards. They can return anything from 10% per annum to 100% per annum. They have very explicit risk disclosure documents that you must understand and agree to before they accept your money. In the real world, high yield means that there is a very real danger of losing all your money. You will not find any guarantees or promises anywhere.

HYIP’s generate their income in a variety of different ways. These include FOREX (see glossary for definition of FOREX), stock market trading, hedge funds, real estate trading, purchasing and reselling liquidated/surplus assets, arbitrage betting (see glossary), selling computer software, and many other methods.

Online HYIP’s are a completely different kettle of fish to offline HYIP’s. The differences are bullet pointed in the list below:

*The minimums are much lower, usually as low as $10 (or even $1!)

*They are less transparent than offline HYIP’s. 99% of the time you’ll have no real contact info on the owner of the program

*There is much more chance that the program owner will run off with your money than in legitimate offline HYIP’s

*The legality of these online programs is dubious to say the least. Are they a gamble (in which case they would be illegal in many countries)? Are they a private loan between you and another person (again, not entirely legal)? Or, are they a real investment – in which case the program should be a registered company paying taxes on all it’s earnings.

Another ‘grey’ area for online HYIP’s, especially for people in the US, is how do you report your earnings or losses on you tax form? This question has never been answered properly, and the best advice anyone can give you is that you should consult your tax advisor.

Online HYIP’s can generally be separated into 3 different categories; Daily, weekly and monthly. It basically refers to when you will receive your interest payments. From experience, I have found that a variable weekly or monthly returns are the safest to invest in, since the program is not forced to pay out a fixed amount, even if trading is bad.

Rarely will an online HYIP give specific details about the trades it conducts. Consequently, you’ll find this phrase used a lot "Our investments are backed up by FOREX trading, investing in stocks and various other funds and activities." It is very hard to tell whether a HYIP is actually doing real trades, but after reading through this guide, you should be able to make a more informed decision

sidebar: the majority of online HYIP’s do NO trading whatsoever).

Many online HYIP’s claim to be doing real trading, when infact they are merely using new spends to pay off old spends. This is called a Ponzi and you can read more about it in the next section of this ebook.

It is very, very easy for a person to setup a online HYIP. With advanced pre-made scripts available from abchyip.com and other software vendors, any person in the world can setup a hyip from as little as $150. I can guarantee you that very few of these mass-produced hyips are real and actually trading.

It’s a common mis-conception amongst online investors that all HYIP scams are run by Russian, Eastern European and other third world country people. Although these countries do have their fair share of scammers, the majority of scammers are US based, running off US servers.

The typical lifespan of a online HYIP can range from days to years. It largely depends on the payment plan that it is offering, and whether there is an external source of income. Below is a table showing the expected lifespan of a HYIP based on its payment plan. These figures are based on our own experience and are assuming that there is little or no external income source.

Of course, there are occasionally exceptions to this rule, but these are exceptional (not to mention rare) programs, but we’ll talk about identifying these programs later on in this ebook).

For Weekly and Monthly programs, you can generally add on a few months to the expected lifespan listed above. For a program to last longer than 1 year is very rare.

You should be able to see now that investing in online HYIP’s is far from secure and guaranteed. Under no circumstances should you be under the impression that this could be the answer to your financial dreams; You want to pay off your credit card bill? Get a better job. It’s harsh, but too many people have invested everything they have left in the world and been completely and utterly ruined financially.