• Foreword



• General Information
• Internet Investing
• HYIP
• Ponzi
• Auto surfing
• Doublers



• Payment Systems
• E-gold
• EvoCash
• E-Bullion
• INTGold
• NetPay
• GoldMoney
• StormPay
• Pecunix



• Security in Electronic Payment Systems



• Investing in HYIP
• How the profit is formed?
• Risks
• HYIP: Evaluation
• Making the First Investment
• Continuing Your Investment Campaign
• Golden Rules

Investing in HYIP

HYIP: Evaluation

Before you invest money in the project you got interest in, surely you need to analyze every aspect of the program.

Amount of regular money payments.

1. Investment limits.
2. Specifics of the activity.
3. Trustworthiness to program organizers.
4. Your impressions from the web-site.
5. Domain check.
6. Contract information.
7. Materials and opinions on specialized forums
8. Position in rating sites.
9. Independent research.

Let us consider in detail every item.

First of all you need to evaluate the amounts of regular money payments, i.e.  the interest from the investment capital to be paid by the administrators projects.

The main thing is not to get caught by promises. If the program promises you every-day doubling of the invested sum, be sure it is a fraud. The average amount of payments under serious HYIP makes up about 3–4%  per day. There may be insignificant deviations. But 7–10%  per day with almost no doubt indicates that the program is a ponzi scheme and the money will be paid to the investor at the expense of new members. As we have clarified earlier, such programs do not promise anything good to the private investors. Some projects offer variable every-day profit based on the programs incomes. As a rule, such HYIP are actually do business trying to effectively accumulate investors money and are not eager to lie to their investors.

The statistics shows that the most serious high-yield income projects guarantee monthly payments at the amount 10–50%. Besides, the numbers may vary depending on the specifics of the activity.

Another aspect is the investment limits. They are the limits for minimal and maximal amount of investments. It may seem the minimal bottom and no maximum for investing demonstrate the openness of the program and its desire to cooperate with the clients who have different financial abilities. However, as the practice shows the serious investment projects always determine the minimum and maximum for the investment. If there are no investment limits you should think whether it is a ponzi project; whether the organizers hope by attracting more and more investment pay interests only at their expense.

The statistics shows that the most serious high yield income programs establish the minimal limit of 25$ and strictly limit the maximum.

Almost every HYIP says about what form of economic activity will create the profit. Earlier we have given the list of the most popular sources for such investment programs and we are not going to repeat it. Let us note that if the web-site says that the program is connected with the FOREX trade and other forms of business you should know that it is most likely to be Ponzi. The leaders of serious programs, surely, are not eager to open all details of their activity. There are many dishonest dealers in the world of on-line HYIP who are always ready to bite from somebody elses pie. However, there are general schemes for all serious programs. The Ponzi creators rarely develop complex schemes because they wont use them anyway. The fraudsters usually say few words that the profit is created by playing on currency exchange market. The serious projects leaders try in detail to explain to the investor how the money will be used but not revealing any company names, amounts of investments and traders names.

However, there have been cases in HYIP when Ponzi projects easily covered under the serious projects and their administrators revealed to the clients the reports about market fluctuations and information about the investments made. As the result those HYIP turned out false and their investors lost their money.

Another aspect is the trust in project organizers. You should carefully study messages the administrators leave on forums and analyze the messages. Pay attention to how much time the project organizers spent on the forum. If they say that they do business, they should lack free time. In case they are on-line on the forum from dawn till dusk you should consider whether they are fraudsters.

Your impressions from the web-site are one of the most important aspects allowing to evaluate the relations of the projects leaders to their program. Good engine, private domain and functional design, simple to use and effective feed-back means do not surely say about the honesty of the program administrators but at least indicate they are serious about the project and have invested money into it. In case the site is hosted free of charge and does not have good design, its content is stolen — it shows the administrators are not serious about the program and they did not spent any money themselves. You should think twice before investing your savings into such a project.

If the project has its own domain name, you should check it using a special whois service (http://www.nic.com/). Here you can get to know the registration details, contact information, name and last name of a person who has registered the domain. Surely, this method cannot guarantee anything because many domains are registered anonymously and the fraudsters easily may give false information. You should carefully study the information given by whois service and to compare it with the information you have about the projects founders.

The more possibilities administrators of the project give to maintain the effective feedback the more trust to the project is given. The possibility to directly discuss the details and program specifics with the leaders at least proves the fact the administrators are interested in the cooperation. Besides, often the high yield income projects leaders try to stay anonymous. In the conditions of todays business it is rather reasonable and cannot be considered a direct sign of fraud.

Carefully study the specialized forums dedicated to the high yield income programs. As a rule, many experienced investors who have participated in many programs visit them. Especially it is important for the beginners how have just started their on-line investing. Thanks to the forums communication you can reveal serious weaknesses in the HYIP you got interested in, learn the opinion of the investors who already participate in the program. HYIP forums are rather good source of the newest and impartial information and you should not disregard it.

After analyzing information on the rating sites you may learn whether the program pays interests at that moment and how long the program exists. However, this information are less valuable than the information from forums because there are no guarantees the project that successfully pays interests today will pay them tomorrow.

Finally there is a possibility to check the HYIP by independent organizations. However, today this way is actively used by new high yield projects with a view to get additional advertisement and possibility to distinguish themselves from other programs. In order to hold the inspection the project leaders shall give their real contact information (address and phone number) after that the independent organization analyze the information and make their conclusion. Often there were cases when HYIP leaders have given false addresses (for example, address of some supermarket or parking lot) and have received the approval of the independent organizations. It happens due to the fact that many organizations just check the fact there is address like this and do not check other aspects of the business activity.

In other words none of the abovementioned aspects can guarantee the fact the project is false or reliable. Only by studying them all you can make adequate evaluation.

There is a formula that helps to determine the approximate lifetime of a project.

Projects lifetime= (SD + SH + KR) * (NO + NF + WD + GAR) * (NKI + SKW + SKR) *365 / ((KI / SV) * (KO + RT + 1) * (KS + STR)*100000)

Where

• SD — approximate cost of design;
• SH — cost of hosting;
• KR — advertisement expenses;
• NKI — presence of contact information;
• SKW — compliance of the indicated contact information with the information given by whois service;
• SKR — compliance of the indicated contact information with the real addresses and phone numbers;
• NF — presence of forum, quality of its development;
• KO — number of mistakes in web-sites content;
• RT — deviations in text (if the content is stolen with different sites or written without giving any
• consideration, the text will have incompliance);
• KI — dynamics of growth of investors number during the first week of projects existence;
• SV — sums of investments;
• WD — information on business activity the program gets incomes from; subjective evaluation of data adequacy;
• GAR — presence of guarantees;
• KS — number of persons engaged in projects maintenance and support;
• STR — place of projects accommodation;
• NO — presence of office.

Every the abovementioned parameters has its own value and putting it into the formula we will get the approximate term of projects life. The formula has been used many times and has shown the accuracy of calculation in about 86% of cases. A mistake in the evaluation happens when the serious owners hide their contact information because of some reasons not related with the HYIP activity.

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