In the last article we gave the answer to the questions:
what is a hyip, how hyips work and what is the future of the hyip industry.
Today, I will try to answer the question how to choose right program and how to invest not to lose or at least not to lose more than you earn.
How the Ponzi structure really work?
As I mentioned before, a big part of hyips is based on the Ponzi structure. What does it mean? It means that new investors' money is used to pay old investors. In each program based on the Ponzi structure less than half of investors are in profit because the Ponzi structure doesn't generate any new money except for investors' deposits.
Taking into account some administrative costs (a server, domain, DDoS protection, script, design, monitors) and the administrator's own profit (or an acceptable level of loss) and referral commissions, only few people are really making money on hyips.
So, why have some programs continued to pay for several years? Assuming that we are dealing with a Ponzi structure, such a long life is ensured by a steadily increasing influx of new investors and deposits. Therefore it is worth following statistics of hyips popularity for example by means of alexa rank. If we don’t have a steady growth on the graph, we can expect problems.
So, how to be one of profitable investors?
Firstly, the moment of entry is very important. Since all programs are collapsing after some time it is worth investing in the chosen hyip as early as possible. The programs which have brought significant profits to other investors are already dangerous despite of their current stability.
Another advantage is that even if a program collapses quickly, you will get back at least a part of your principal.
Secondly, we have to try to sense and predict if our favorite hyip will be paying for a long time. This is one of the most difficult tasks because the history shows that even well-prepared programs can fail.
Thirdly, the moment of leaving, that is how long (if possible) should you keep your deposit active? The ideal situation is when you get back your deposit and you earn by investing a clear profit only. Then you don’t need to worry about it when a program collapses because you are always in profit. If you have a possibility to withdraw your initial deposit anytime you should be watching for possible negative signals as well.
Such negative signals are:
- New investment plans introduced, much more profitable than previous,
- deposit bonuses,
- withdrawal problems,
- selective payments,
- hacker attacks,
- payment processor difficulties,
- conducting adverting campaigns,
- fake ratings in monitors.
The moment of leaving is different in the cases of short and long term programs. Typical Ponzi plans such as 110% after 1 day are usually cycled 5-6 times (in quality programs).
Thus, to what should I pay attention when I am choosing a hyip?
A general image - on this basis we can assess how much time and work an admin has put in the organization of a given program. The higher rating, the greater the chance for a longer lifetime of a hyip. Thus, we need to judge the quality of chosen template, script, server or monitors.
Information on a website - read carefully the text on the website and judge if you deal with texts copied from another website (plagiarism, verifiable by using google) or with unique ones.
Check also if the admin introduces himself as a global, very rich and experienced group or company (not very realistic) or if you deal with an individual trader or business owner who is looking for capital (more realistic). Don’t believe in a long-standing experience if you can’t confirm it in the internet.
Investment plan construction –plans should be built so as to ensure a longer lifetime of a hyip. Therefore they should have max. deposit limits and generate a stable and sustainable profit growth.
Communication – a good support which quickly responds to our inquiries or forums and social networking activity (twitter, facebook) are also signs of good administration.
Stable development – growth in the popularity of a program should also bring a continuous development of the program structures, and thus multilingual platforms, new payment processors, etc. should be added.
Originality - features that distinguish a given program from others can also guarantee success. An innovative approach shows ingenuity and unconventional attitude of the program’s administration.
However, I remind you that luck is still most important, because more than once I saw a promising program that quickly collapsed, and vice versa, uninteresting project has been paying to me for a very long time. Thus I am not recommending directly any hyip, everyone has to learn and chose their own investment strategy and take responsibility for their own investments themselves. These guidelines are intended only to explain the probability of hyip being solvent.