What is HYIP

HYIP ,which stands for High Yield Investment Program, is a program which offers high yield investment .It is the most profitable investment program offering interest rates ranging anywhere between 5 – 250% a month.

HYIP's are using different investment strategies to generate high returns. They are involved in capital management, such as Forex trading, stock exchange, sports betting, metal trading etc. There are even HYIPs investing in other HYIPs. There are also programs that are not investing at all. These belong to the scammers.

High Yield Investment Programs carry their daily activites via the Internet. They typically accept investments of $10 or less while promising high returns.

E-gold is the easiest and the most effective system of international electronic settlements. It is optimal for participation in high yield investment programs as it makes it possible to get the earned money instantly.As it is suitable form of online payment system that works around the globe, HYIPs operate worldwide and accept large numbers of small investments.

Most High Yield Investment Programs do not survive for very long , turning out to be a scam. Scam HYIPs are Ponzi schemes.A Ponzi scheme is an investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business.This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised).

Taking both the negative and positive aspects of High Yield Investments into consideration, the conclusion is; if done right, High Yield Investments can be extremely lucrative.


If you are considering on making an investment in a HYIP be certain to do diligent research first. You should also learn the HYIP techniques and strategies to come up with nice return on your investment.



What is Due Diligence?

Due Diligence (DD) is a process whereby an investor investigates the attractiveness of an opportunity and assesses the quality of the management team and the key risks associated with the opportunity. It is a Way of verifying the validity of a particular program’s real investment opportunities. It helps to discover everything about particular program’s real investment opportunity before you invest your money.
Due diligence is probably the most critical stage in investment. It is a complete investigation and review of the investment opportunity.

When to Start the Due Diligence?

The investigation process begins the moment opportunity becomes of interest to you. Your goal is to make certain that you uncover everything about a particular program’s real investment opportunities before you invest in it. You don’t have to meet the company’s staff or even visit the business for your research to begin. The Internet is an incredible tool that will allow you to investigate the validity of a particular program.
Here are Due Diligence steps to follow before investing in any program:

1. Check out a program’s website

The first step you should do is to check out a program’s website. Carefully investigate its website design.
Some of the things you will see on scammer’s website are: Not professionally designed website, Old templates with a standard collection of FAQ (Frequently Asked Questions), Unorganized and Irrelevant website navigation, offering unrealistic daily return, Poor security website, Continuous failing website, No actual names and contact details and cheap scripts

2. Way Back: Investigate how a website looked in the past

Way back machine is one of the most important tools that are used to investigate how a website looked in the past.
Some Scammers claim that they have been online for long time. Using Way Back Machine you can easily identify if the website has been online for long time. Way Back Machine has 50 billion web pages archived since 1996.
To investigate if they have been online for long time, Visit

http://www.archive.org/web/web.php

Type in the web address of a site or page where you would like to start, and press enter. Then select from the archived dates available. The resulting pages point to other archived pages at as close a date as possible. You will be shown the search results for your particular website, categorized by year.
Just see if the contents of the website at different times match. Also focus for contact details and see if they match.

3. Make Research on Forums and Monitoring Sites

Another tool for making a Due Diligence is Forums. Forums are a great place to exchange ideas with people who have the same interest with you. There fore, as a research tool, you have to visit known, popular, trusted and professional forums, like HYIP Discussion and Golden Talk and, read what people are saying about the particular program.
Monitoring Sites are other Due Diligence tools where you can make your Investigation. But there are certain issues you should be aware of monitoring sites.

a) Do not depend on a single monitoring site
b) HYIP admins treat monitoring sites very well. Therefore, if you see paying status on monitoring site, it does not mean the HYIP is paying all investors.
c) Read all rating given by the investors on the program you are making research.


4. Check WHOIS information: Domain registration data of a company’s website

Check the domain registration data of a company’s website. WHOIS information gives you full information about the company including telephone number. You can use either of these sites to find the WHOIS information:

http://www.hyipexplorer.com/netquery/
http://www.whois.ws
http://whois.webhosting.info/

Type in the web address of a site or page where you would like to get information, and press enter. A complete list of contact details will be displayed on your screen. Some of the information you will see on the screen are: Domain Name, Expiration Date, Creation Date, Last Update Date, Registrant, Administrative Contact, Technical Contact, Registration Service Provider, Registrar of Record, Record last updated and Record expires, Record created and Domain servers in listed order


Once you get the WHOIS Data You should investigate carefully the dates of domain registration and expiration. If the company claims that they have been working online for long time, but their website domain was registered only few months ago, it is just an indication of dishonest. At the same time, if the company’s offers a long term plan and the domain registration expires in the near future, the probability of company being a scammer is great.
Finally, just give a call to the number specified in the WHOIS data and make sure that the contact details really belongs to the person listed in the WHOIS data.

5. Request the company’s documents
It is always recommended to request and investigate the company’s documents, before proceeding with an investment.
You need to request and verify the following documents:
• Valid Business Registration Certificate,
• Financial Records,
• List of banks with which the Company has a financial relationship.

6. Confirm the validity of the Company’s documents

At the final stage of your Due Diligence you should confirm the validity of the documents requested from the company. This is carried out by contacting the issuing institution.
In conclusion, there is always a risk associated with High Yield Investment Programs. These risks are minimized by implementing proven and effective strategies.



Key Investment Strategies


Never invest unless you make a research

The first step you should take before investing your money into a high Yield Investment Programs is to find out the most profitable and stable programs that could bring a nice return on your investment.
1. Making research on popular search engine like google is the easiest way you can start you research.
2. Another tool for making a research is Forums. Forums are a great place to exchange ideas with people who have the same interest with you. There fore, as a research tool, you have to visit known, popular, trusted and professional forums and read what people are saying about different programs. You can also ask questions in these forums. But you should not believe every thing people are saying in forums. Because there are people answering your question, by posting their referral link, who are not interested in you but their commission.
One thing I would like to remind you is, you should never depend your research on a single forum.
3. Monitoring Sites are another place where you can make your research. But there are certain issues you should be aware of monitoring sites.
a) Do not depend on a single monitoring site
b) HYIP admins treat monitoring sites very well. Therefore, if you see paying status on monitoring site, it does not mean, the HYIP is paying all investors.
c) Read all rating given by the investors on the program you are making research.


Diversify Your Investment

High Yield Investment Programs are very high-risk programs .As a successful investor, one of the issues you should look seriously is to reduce the risks associated with these programs.
One of the effective strategies used to reduce the risk is through diversification. Investing your money into many programs.
Investing in a single program is risky, because if the program collapses, you lose all your money. But if you put your money into many programs, if one of the programs fails, you will still have money in other programs.


Always make a test Spend

Because As the risks associated with these Untried programs are high, always you should be cautious to join these programs. But if you decide to invest in untried programs always make a test spend, before investing big amount. After you make a successful repeated test spend, you can proceed into a series investment. But one thing you should be aware is some HYIPs pay you for a small spend but when it comes to large spend, they do not pay you.

Get your Original Spend back quickly and Make a regular withdrawal

As it is impossible to predict the age of HYIPs, it is always recommended to withdraw you money until you get your original spends back. Even after you get your original spend, it is always preferable to make a regular withdrawal. My Recommendation is withdraw 50% of the profit while investing 50% that is 50% compounding after you get your original spends back.
As you are responsible for your investment on HYIPs arena you should always implement these strategies to come up with a nice return on your investment.