HYIP Success

One of the fastest growing segments of network marketing are High-Yield Investment Programs, also knows as HYIP programs.

HYIP programs take a spin on the traditional MLM-type of network marketing programs by removing one of the key drawbacks to success for the beginner:  the requirement to recruit other individuals into the program.

Most HYIPs will pay a considerable daily percentage on your balance without the need to sponsor anyone else into the program.  Of course, sponsoring other people into the program will improve your earnings. 🙂

Your actual “investment” into the program is usually in the form of purchasing “ad packs” (advertising packages).  These ad packs often represent a “share” in the profits of the program.

These shares will earn interest for only a specific numbers of days.

Here’s the format of a common HYIP offering:

  • Position Cost:  $10
  • Daily Percent:  3%
  • Return Days:  All Days
  • Expiration Terms:  60 days
  • Re-purchase / Compound Strategy:  40/60
  • Credits–>  Banner Ads, Text Ads, Solo Ads

Position Cost

The position cost represents your minimum investment into the program.  It may or may not also be represented as a “share”.

Daily Percent

This is the percentage that is computed on your total balance of the particular position.  For example, if I had 10 of the $10 positions, the amount of money I would earn in the program would be $3 per day for 60 days.  This is before compounding!

Return Days

These are the days of the week when you are able to earn a percentage yield.

Expiration Terms

This is the duration that the position is eligible to earn interest.

Re-Purchase / Compound Strategy

Many programs require that a certain percentage of your daily earnings be held in a special “re-purchase” balance area.  You cannot withdraw this amount as cash; it must be re-invested into the program.  This is done to extend the life of the program.  Though it forces you to always keep some of the earned money in the program, it actually accelerates your earnings through compounding.

Credits

Along with the purchase of a share/position, you receive “credits” than can be used to place ads on the website.  These ads can be for similar, competing programs and that is the most common use of the ad credits!

 

HYIP Compounding Example

 

HYIP Compounding

The money (interest) that you earn from your positions can be used to purchase additional positions.  This increases the interest that you earn on the next day.  This is Compound Interest, and it is one of the key strengths of any HYIP program.

In the above example, you can compound (use your accumulated “re-purchase” money and/or cash money) whenever you accumulate the minimum position value of $10.

So, if we run the above example out to 60 days and assume that we diligently re-invest the equivalent of 1 or more positions whenever our re-purchase balance allows, we get the following results after 60 days:

Total Money Returned:  $149.40

Remember, the daily 3% earned is split 40/60 (program/you).  So, after 60 days, you still have 9 positions ($90) working for you!

Despite the continually expiring positions, as long as you continue to re-purchase positions with your re-purchase balance, you will still continue to earn an increasing amount of money each subsequent month. 🙂

It should be noted that there are many HYIP programs that provide 4%, 5%, 6%, and even 7% interest per day!  The duration of the position is often reduced with the higher percentage yield offered.

 

Use Caution with HYIP!Attention:  HYIP PROGRAMS ARE VERY HIGH RISK!!!  The higher the yield, the higher the likelihood that the program will not last very long.  You can lose all of the money that you put into the program.  There are no refunds, either!

 

So, how are these programs able to offer such high daily interest yields?  Extracurricular activities! 🙂

Many programs use Forex trading, commodities trading, and other ventures as income generation vehicles to offer such high returns on the investment.

Ad revenue may also be a big part of the income generation, but the other ventures likely generate the majority of the sustainability of the program.

 

HYIP Strategy

A good HYIP strategy to consider is a simple one:  get your seed money out of the program as fast as possible.

There is no better way to ensure that you come out ahead in the program, especially given the fact that some of these programs disappear as fast as they arrive.

There are many factors that contribute to the demise of an HYIP program.  “Fraud” has often been the cause–so much so, that many definitions of HYIP preclude the possibility of legitimacy.  However, there are some programs that have been around for several months and still going strong.

The following features are indicative of an HYIP that has longevity:

  1. Look for a program where there is good communication (via email or site announcements) from the program manager/ownerWhat to look for in HYIP
  2. Look for a program that responds quickly to support requests
  3. Look for a program that may have additional avenues of communication (Skype group, fan page, etc.)
  4. Look for site reviews (be aware that many reviews are “negative” in general for HYIPs, with frequent comparisons to Ponzi schemes)
  5. Look for a program that provides quick withdrawals

 

Success with HYIP programs depends largely on your tolerance for risk and adherence to discipline in your investment strategy.

In many ways, it similar to speculation in any financial market.  Again, the key is to get your initial investment out of the program as fast as possible!  Then, you can leverage the remaining funds for the most gains for as long as the program will last. 🙂

 

Enjoy!



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