Have you been surfing the web typing in the search term “What is a HYIP program”? Well, then you have found your no-nonsense answer here. Plain and simple, it means it is a scam! Sure you can make money from them sometimes… and for a short time…
However, they are still scams and will crash sooner or later.
Let me explain why in this short post so we can stop this bullshit and shut up everyone trying to promote them once and for all.
What is a HYIP program – How They Work
Ok, first of all, what does HYIP stand for? It stands for “High Yield Investing Programs” and are mainly targeting people looking for investment opportunities.
They often come out as something solid and stable when they, in fact, are the absolute opposite.
How they work:
The money that new “investors” or (more correct) victims put into it is the same money that the older Investors cash out (if they don´t reinvest their earnings).
However, this only works for as long as there is more money coming in than goes out from the “big money pool” and you can not know for how long the program will work…
One thing that ALL HYIP (scams) got in common is that they are unsustainable as they are always offering to high return rates on your investment.
Hyip also goes under another name… Ponzi scheme…
What Does Ponzi Scheme Mean – How It Works
Ponzi schemes are just as HYIP´s primarily attracting people who are looking to make great investments as they come out as that (most times).
What Ponzi (Ponzi scheme) is all about is that you (the victim) are getting a proposal to invest your money into a “program” or something like that with a promise of very high returns.
The return rates are often very high (unrealistic) and there is a good reason for that.
The money the (scam) scheme is paying back to it´s “investors” is the new money coming in from the new victims to the scheme… That is exactly how it works.
So, the conclusion is that the scheme can make you money (especially if you get in early) but the whole structure is doomed to crash as the high return rates will eventually dry out the “pool of money” and there will not be enough money to pay anyone in the end… This can go fast or it can go super fast…
One thing is for sure, it WILL happen and when it does the owner (most times some mysterious guy) will take the money that is left of the program and make a runner.
You and the other members of the scheme will be robbed on all the money that you have put into it and there will be no way of getting it back.
So why the h**l are you willing to take that risk when you never know when this will occur!??
Ok, I know it can be tempting of course and most times they come out as something legit and “bulletproof” that guarantees your earnings…
Bitcoin HYIPs and Ponzi’s…
They are also literally EVERYWHERE online, very commonly in the form of “bitcoin investing opportunities” but they are all the same HYIPs and Ponzi’s…
If you want to invest into bitcoins then at least do it with something that has been proven 100% legit. The absolute best place I can recommend if you want that is Local BitCoins.
Click here to come to the official site of Local BitCoins<==
The HYIPs and Ponzis are everywhere
Trust me I know how tempting it can be, I have fallen victim for them myself earlier.
The one I fell victim to was Forex Paradise, it made me (and others) money for some time as it gained a lot of new members…
but eventually… The site stopped paying out and now the site doesn´t even exist…
Did any of us get our money back? No, of course not.
Some other examples of FAKE investment companies
To see examples of other Ponzi schemes here you got 3 classic ones that I reviewed recently:
Some examples of REAL investment companies
If you want to see an example of REAL safe and solid investing sites instead then I have picked some of the most well-known and trusted ones on a page on this website that has reviewed hundreds of both legit and sadly most scams, however, the list consists of the best rated and trusted sites you can find online, of both legit investments (and very good info) in Real Estate, Precious Metals, Trading, Bitcoins, etc.
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If you want to invest:
I mean, what do you want to do? Do you want to learn how to promote stuff online or do you want to invest? If you want to invest, at least go with something that is REAL, right?
Hope this short post was helpful and now you should have a crystal clear understanding of what an HYIP program is and also what a Ponzi scheme is and what it means.
If you have been part of one please share your experience in the comment section below as it can help others to avoid falling victim to them. Also if you got any questions about this post I will be more than happy to answer them below!
I wish you success!
Founder of: Start Make Stop Waste
Paul Webb says
Amen, brother. I think almost everyone here has been the victim of such scams at one time or other. I was involved in several real estate investment schemes before I wised up. But experience is a great teacher and you get knocked around a bit before you get to the point where enough. A lot of scams started out as tv infomercials before they tried their hand at online mainstreaming. But a scam is a scam, and the more educated you become the more one can side step the get rich quick programs.
Yes, it happens to most of us. Happy to hear you have had enough of it.
/Thanks for your comment
I have heard of HYIP but have never been a part of one. It’s the High Yield part that excites investors, I guess. They are drawn into the myth of making more money with their investments. Maybe sometimes you can, I don’t know.
I prefer to hit bunt singles and play it safe. Would you ever recommend a small portion of your savings to invest here? or just never at all?
Thanks for this, I understand HYIPs a lot better now.
Yes, it is probably the high yield part that lures people into it. Yes you can sometimes, as long as there are more Money comming in than going out they work…
I would NOT recommend investing into HYIPs and Ponzi schemes NO.
Personally I am done with that, if I want to gamble with my money for the thrill of making a quick win I much rather go the casino to be honest.
The only investments I am into right now are gold, silver, platinum or paladium as I believe those are the smartes ones to make right now.
There are so many of these investment scammy sites out there offering people riches. Its easy to see why so many people automatically assume that online opportunity = scam. For newbies entering this arena I am convinced that your post will prove to be a valuable asset and save them time, frustration and money. What a great contribution to the wider community. Well done.
Thank you! Really appreciate that and I hope the same as you
HYIP? Ponzi Scheme? Pyramid Scheme? MLM? OMG!! New scams seem to pop up every day to take advantage of people’s naivety
Thanks for clearing it up for me and on another note, I’m not surprised to see you mentioned gold.
I met a broker that told me gold has increased 3000% in our lifetime alone and that it’s the only real investment worth making. How much should I start out investing with if I wanted to buy into gold?
Yes I know, many times you find a combination of all of the ones you have mentioned mixed up in one big “super opportunity” scam lol!
Yes what he told you is true, it has increased in worth 4500% since the 1900s. If you would have invested $100,000 into gold in 2010 for example it would be worth more than $300,000 today.
How much you invest into it depends on you, I would recommend a minimum investment of at least $2,000 though if you ask me, the more you can the better of course.
Thank you for posting this article about HYIP programs. I never knew what they were before reading this and thanks to you explaining what they are and how they work, I will steer clear of them as it looks like an easy way to lose money quickly. I really like that you posted what are legitimate investment companies as well. It really is amazing though just how many investment scams there are out there, but that has been going on for a long time now.
Glad you liked the post and found it educational.
Couldn´t have said it better myself,
/thanks for your comment brother!
Riaz Shah says
High Yield Investing Program they said? More Like High Risk lol. I can totally relate to what others might be thinking, I mean who doesn’t want free money right.
But after we invest in, they update us bit by bit on how much profit we’re making to keep us on the good side and just when we’re about to withdraw our money, the owner runs away with our money. Happened to me 2 times already, any company less than 5-year-old is a high-risk company, especially if it’s about investing.
Lol you hit the nail on the head with that one 🙂 Exactly!
Thanks for sharing about HYIP, after the first few lines of how you were describing HYIP, it immediately sounded like a Ponzi scheme– which you rightfully pointed out later on.
Appreciate you raising awareness about such schemes/scams out there and hope you don’t mind if I shared your post with family and friends!
Thank you! Absolutely NOT, In fact I wish everyone that reads this Review shares it as it will help to end this nonsense “programs”
Thanks for this review.I never heard of HYIP program before and am very glad to learn more here.
It’s so sad, that folks out there are using such ‘schemes’ to lure people out of their hard earned cash.
This gives other opportunities that are the real deal a bad name.
Thanks for teaching me what a Ponzi Scheme is.I had no idea what is was.
Yes, the problem is that the internet is filled with scams, the legit opportunities is not even close in numbers and when people trying scam after scam it will give everything online a bad name just like you say
Wow its really sad to see that there are people who are actually trying to scam others of their hard earn cash. Thanks for sharing this information John, my parents were once victims of a pyramid scheme back in the day called qixstar, they promise endless monthly earnings if you sell their products which you had to pay for to sell and they were absurdly overpriced. They even said if you decided to stop sell their product you can still earn if you recruit new members for them.
yes that is the definition of a pyramid scheme, they are always over priced and the reason for that is for the product to be able to pay many levels down in the pyramid structure
Great to see these scams being exposed. Wish these people would just do honest work instead 🙂
As victims get smarter the scammers come up with new ways to swipe funds so its important to stay informed if you regularly trying out programs like we do, for research and investigation purposes.
Keep up the good work.
Thanks for this article on what a HYIP program is about!
I go by the saying that if it sounds too good to be true then it usually is!
A “high yielding investment program” sends off alarm bells straight away!
You have given a good explanation of why these programs are scams and what to look out for.
I also like how you have given some examples of some honest programs to see the difference.
Thank you John!
you have a great site full of lots of information which is helping people steer clear of online money making “shiny objects” and guides them on the basics and where to learn. I’ve bookmarked as its a good read
Your about me is a great introduction to you and what you are doing with your site.
Thank you man!
Thank you! Finally someone said the truth about this hyips and ponzis! I hate it when people promote them on Facebook like some amazing new opportunity.
Thank you Jeff, yes I know I see people promote stuff like that on Facebook all the time, feel free to copy and paste the link to this site on them 😉
Thanks for the sharing on HYIP. It does ultimately sound like a Ponzi scheme, and it doesn’t live up to the hype of being able to make money and let alone make money honestly.
Great links to other legitimate ways to make money online and I definitely appreciate the sharing done!
Aime Matunda Pero says
Thank you very much for sharing this helpful article about HYIP and Ponzi scheme programs. I failed victim and lost hard earnings. Truly they are evil business doers following the opposite way that God has prepared for man to do business revealed in Acts 20:35b