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.
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.
Do you want to learn marketing or invest?
If you want to learn marketing:
It is also a skill set that can generate A LOT of money. Same goes here, go with something that is real, and (most importantly) if you are a beginner go with something that takes you through the process step-by-step to learn you the foundation how to build your business online and generate a full-time income from doing so.
It takes a lot less money to really getting started learning a good educational skill set on internet marketing, you can actually do it for free, the info is out there.
It might save you ALOT of time if you go with something that has it all “in the same place” and not spread all over the web, right? Something that takes you through it and gives you steps and tasks to complete so you can continue advancing your skill.
(If you want a $0 FREE and absolutely awesome beginners platform then continue reading below)
There are not that many that I would recommend online, however, the absolute best one I know of and also been online since 2005 and considered leading in it´s “area” pretty much ever since is Wealthy Affiliate.
It is a no bullshit no-nonsense place, (there are no fake promises of getting rich quick here) where you get help from thousands of surprisingly super friendly people.
It got step-by-step instruction videos that teach you how to create your first site in moments from signing up for it. It is absolute $0 FREE to start as a lifetime member.
There is also a premium membership to strongly consider later on but I would strongly recommend doing it as a free member first to see if it is something you can see yourself doing first.
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