Mar 7th, 2008 Archives

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Today I would like to discuss the advantages and disadvantages of profit-sharing model based on the example of JRProfit – the program from well-respected admins Jodi and Raz. They had already some experience in running a doubler/cycler type of program. And they were successful enough. You might have read my interview with them already, but if not please read it here just to understand better what I’m going to talk about.

Let’s first talk about the advantages and disadvantages of the profit-sharing model comparing to regular HYIPs with fixed daily rates. Among the most important advantages I can mention:
1) The possibility to earn higher rates of interest daily compared to other HYIPs;
2) If admins are honest the profit-share program can run for a long time, potentially forever.

It would also be fair to talk about some disadvantages of this model. They are:
1) Not a stable daily rate: you never know what you will get so you can’t plan your investments properly;
2) After some difficulties the site suffered (DDOS-attacks etc.) it can affect program’s performance for a long time;
3) Investors are very sensitive and seeing any decrease in daily percentage they stop depositing and that can cause a chain reaction and lead to premature death of the program (we could see it in BusinessProfitPro).

It’s not by chance that I mentioned BusinessProfitPro here. Dave tried every measure to revive his program but was not able to do so. It happened right after an enormous DDOS-attack that continued for a couple of days which was enough in fact to destroy the program. In the case of JRProfit we can see exactly the same thing happening:

1) Honest admins that were experienced enough even before they started JRProfit that attracted many members that started to actively promote this program;
2) DDOS-attack after just a few days after the program’s launch that caused a real dip in members’ deposits after it was mitigated;
3) Seeing that the rates decreased significantly many members just stopped redepositing which in turn caused the next wave to decrease (we can see that today’s LR Live Share is 1.67% and STP is still on zero level taking that the possible maximum daily ROI can be as much as 20%);
4) To save the situation the admins decided to give away some bonuses (for example, yesterday everybody who deposited at least $50 in LibertyReserve got 3% of their amount as a bonus that was credited to “other earnings”) but as we see it was not enough to revive the interest of the members in redepositing.

I very much like the words Raz, one of the admins of JRProfit said about the current situation they are in:
Right this moment everyone is afraid in this industry and is asking himself:
– is admin going to close the site and run with all money?
– if the LiveShare is low other members will make deposits?
– when will admin feel bored by the lack of activity and close the site?
The answer to those questions is only one: We must change this and learn to trust the other members.
JRprofit is not going to close because the lack of deposits and we will not close the site and run with the money.

Well, I don’t think it’s a matter of trust here. It’s a matter of making money: people want to make easy money in this industry and when they get it they feel satisfied and redeposit. But if they don’t get what they want they start to get nervous and don’t expect some good news. The decreasing daily percentage is actually a big warning sign for them.

The hard truth about team playing where all the members should redeposit to get the higher daily percentage is not working here. Everybody just cares about their own money here and nobody wants to be funding a program where all the profits will be shared between all the members. And he doesn’t think about the future of this program and that he could possibly lose a lot of money here if everybody behaves like him in this case. Everybody thinks about their own benefit. It’s this fact that cannot be disputed and that’s why the profit sharing model is doomed to be short-spanned and unsuccessful.

Don’t get me wrong! I would be applauding to Jodi and Raz if they could really revive this model to life, but it seems to me that it’s just a waste of time and effort. We have seen this scenario so many times that I simply can’t believe that this time it will be different. I repeat that I have nothing against JRProfit because the program is online and paying, it’s just the model they are using seems to me not viable. This is what I had to say today.

Other news for today.

I have asked Dave, the admin of SurfProfitPro a very tough question indeed today. I just asked about the cashouts that had to be resumed on Sunday and that was his answer: “This is a tough question. I am still hoping that this day will end on a positive note“. In other words, Dave is not sure if he will open the Sunday for cashouts or not. In my opinion, it would be a mistake not to allow the members to request cashouts this Sunday. I know that the rate of support was not very good during the days after the attack but if Dave continues to delay payments even after reforming SurfProfitPro to 5% for 28 days it will lead to only worse consequences. Many members are waiting now and will not reupgrade before the first cashouts after the attack are processed. So I hope Dave will make the right decision and start payouts soon.

I received my payment from MoneyTrip again last night and already reupgraded. Since SurfProfitPro is not so attractive now for upgrading I encourage you to pay strong attention to MoneyTrip that offers you 10% for 13 days with payouts upon expiry. Many payment processors accepted and admin’s betting activities as additional income for the site, the possibily to earn some money only for promoting and fast payments: all these facts are making a unique program from MoneyTrip. To know more please refer to my interview with admin David here.

I also got paid from PSAdvertising today. It would not usually be a newsworthy topic as it’s quite a regular daily occurence if not for the fact that I received the first upgradeback today. Of course a 10% fee was applied and I actually got only 90% of my original deposit but if you consider the 2% for 30 days cycle that I received on a daily basis you will see how profitable it can be. Actually I received about 150% for a month. That’s a very good rate of return I must say compared to that of AttractiveAds.

By the way, if you’re interested Larry from AttractiveAds just mentioned that the first refunds for those not in profit will probably start already this weekend. This is from the latest update I heard from him: “I was planning to do the first refund today but for a reason I have to delay it until weekend. For every member’s information: To complete this refund for all members, it will take weeks or months because I have to spread and cycle the fund to get earnings for refunding members who are not in profit. So if you see others have been refunded, don’t worry…no need to support ticket, you will get yours sooner or later“.

Also I got some payments from my slow but steady performers. Such term I apply to low ROI programs that can be less risky than high ROI ones but in the long run they are able to make you more money and be more profitable. These programs that paid me today are: AcmosTrade (read the interview here), UltimateHYIP (interview here) and OG Fund (interview here).

And finally I got my payment from low ROI autosurf Tramael and am going to reupgrade tomorrow. Tramael is a highly recommended program that pays 6% for 20 days with automatic payouts upon expiry. By the way, missing days are not penalized! In my opinion, stability and consistency are the key words that make Tramael what it’s about to be – one of the best autosurf programs.

See you tomorrow with possibly shocking news that I can’t disclose right now but I still hope I will not have to report it if things change. Till then have a nice weekend, everybody!

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