Black December And The Nightmare Before Chtristmas
Hello everyone! The subject matter today is rather like a comic horror movie – The Nightmare Before Christmas – or Black December as it’s so often referred to in the HYIP industry. You might think it's only relevant to a certain time of year and not really all that important otherwise, but trust me, anything that helps you gain a better understanding of the HYIP industry will always be useful in helping you become a smarter player. Long term MNO readers and experienced investors will be well aware of this already but for the benefit of new players (and December always sees a share of them) it needs to be said in plain English that this time of the year is traditionally the least predictable, the least stable, and the most dangerous month in an industry not exactly noted for it’s dependability in the first place. So I guess what I want to talk about today is why. What is it and why does it happen? And what can you do to protect yourself, assuming you’re not leaving the industry completely during the month.
There are also a certain number of low grade “monitors” out there (“hacks” is what I’d call them) that will tell you that the problem of Black December is either vastly exaggerated or else doesn’t even exist. Don’t believe them. These people have a vested interest in keeping you spending as much money as possible. It makes no difference to them that you are throwing this money away because the lure of ref commissions is something they choose not to see past. I have been in this business for many years now, and for many of them before I ever started MNO. I can tell you that the problem is very very real and I can’t name one single year from the last ten where it didn’t happen.
First of all, what happens in the industry in December to that gives the entire month such a wretched reputation? In a word – Christmas. Let’s be honest, it’s the worlds biggest most frenzied spending spree, and who couldn’t use a couple of extra bucks? As anyone with friends and family knows, Santa Claus doesn’t work for free! So now the regular HYIP players are joined by an influx of newbies looking for fast money. And with that comes the usual group of bandits to exploit them.
There are always some unscrupulous admins that will start online HYIPs without ever having the slightest intention of paying anyone and that number is only magnified at this time of year by admins looking to do a little Christmas shopping of their own, paid for by you. So they open high interest short term HYIPs in the hope of luring you in. But that’s not where the problem ends. A lot of otherwise serious programs also collapse at this time due in part to members themselves not investing. They obviously also have better things to spend their money on, as well as learning from experience what the dangers are. It’s a sort of “catch 22” situation where investors won’t invest because of too many closures, and programs close due to no investors. Throw the scam admins just out to rob you into the mix and the situation isn’t helped one bit. The whole industry revolves around cash flow, and if it isn’t flowing then the industry grinds to a halt.
The problem is most prevalent among short term games, but it by no means ends there. Black December has claimed its share of long term scalps too. Many members of such programs, even those there for months on end, have now decided that they have achieved their goals set while joining these programs in the first place so now it’s time to reap the rewards, withdraw their principals, and spend the profits on enjoying the holidays. If that describes you then congratulations! You deserve it and have achieved what every HYIP player dreams of – to play the industry and walk away with a bag of free money that you didn’t have to work for. In a wider industry perspective however it creates problems elsewhere by increasing the pressure on the admin to deliver results for the remaining members.
Only the strongest long term programs come through this period unscathed, or at least those with far-sighted and experienced admins with the sense and the vision to store a healthy cash reserve away in order to overcome this temporary situation. Newer long term programs are less affected. The admins there rarely start up new programs with the intention of having a fast scam. If they do they don’t know much about the business because there is relatively little money going into them at this time, most investors preferring to bide their time until January when they can better assess the market and its recovery. But new low ROI long term programs don’t have any serious financial commitments to make at this time and are usually safe enough. The admins rarely expect much money anyway and are more content to build their reputations and enter the new year as a well established and reputable program with a solid history of steady payouts behind it. And December can also be seen as a good test period for low ROI programs, with the strongest and most dynamic moving forward.
If only the same were true of short term games. The problem of deliberate conmen out to rob you is enough to bring down a lot of the fair admins as well, not to mention that whole chain of dominoes of short term HYIPs all piggybacking on each other.
Which kind of leads me nicely to the next point about the natural cycles that the HYIP industry goes through. Pretty much like the real world economy the HYIP world also has its “boom and bust” periods. At the end of the day there’s only a limited number of players participating in this industry and no matter how good a program is sooner or later they’re simply going to run out of people prepared to join, and that means running out of fresh money. This may be starting to sound like I’m drifting away from the main point now which is still Black December, but I’m not. It’s still part of the natural order of things and the well dries up when there is more people than money. My point being that in this case the situation is simply exacerbated by the annual plague of short term scams and their criminal admins that descend upon us at this time. Ultimately something that could either destroy or at least do long term damage to the industry and the decent admins that will at least give you a fair and equal chance of winning/losing a couple of bucks. But then that’s a story for another day.
We've seen this domino effect before of course, more than once, but amplified considerably when things seem to be at their best. One reason for this – and by no means the only reason – is a huge number of new investors coming into the industry for the very first time. They found all these gigantic money factories making huge payments for several months and jumped to the (wrong) conclusion that they simply had to be real genuine investment companies. A massive injection of new money spurred these HYIPs on to even greater heights. But these “investments” are in actual fact more like loans. The interest repayments are absolutely crippling for the admins, who then decide to pocket what they can while the going is good and leave town as it were with your money. Then when big programs collapse within a short time of each other they inevitably take down all the small time HYIPs piggybacking on them shortly afterwards, sending the industry into free-fall.
Say what you like about this industry but if nothing else as a whole it is very resilient and flexible. It has a long and rich history of bouncing back. Nature hates a void as the saying goes, and wherever there is a demand there is a supply waiting to meet it. Wherever there are people who want to make money fast and anonymously (and not be taxed on it unless you want to) then some, shall we say “entrepreneur” will organize an online ponzi/pyramid scheme. And it’s vitally important that you never lose sight of the fact that this is basically what this industry is all about. Sure, you can be philosophical and say it’s a microcosm of the entire capitalist system. But it’s still about ponzis and pyramids and sooner or later it all comes crashing down before getting built back up again. And that’s a point that you should never, I repeat never, forget if you are going to be a successful HYIP player. Just in case you’re wondering that’s a lesson I learned the hard way just like everybody else. In fact even I was in this business six months before I ever did better than just break even! Other blogs and monitors might try and convince you that there is some real “bricks and mortar” businesses functioning as online HYIPs, be they real estate, oil and gas, fish farms, or whatever. There isn’t. Please, trust me on that.
I know what I’m talking about and like I said at the start there are a lot of piranhas out there with a vested interest in keeping you spending money that you’ll never see again. Experienced investors know I’m right about this, but as this industry has a high turnover of players experienced investors are in the minority. In fact I’d even go so far as to say the closest any HYIP ever came to real business is the so called “black ops”, ie long term HYIPs opening short term scam HYIPs (anonymously of course) in order to boost their spending power. Forum ads and sticky topics ain’t cheap you know!
So how can I sum it all up? Well, for one thing the HYIP industry is subject to it’s own set of natural laws. You don’t invest money with HYIPs, you loan it to them. They pay you interest up to the point where they can’t afford to anymore, and then run off with what’s left. That much can’t be denied. Everyone has his own strategy for being one of the winners – invariably at the expense of one of the losers. If anyone has a problem with that then sorry, but you’re not suited to playing these games. But in December these rules just go haywire. First time investors are coming in to try their luck and make some easy money for Christmas, and long time scammers are waiting to take advantage of their lack of experience, also with the same goal in mind. Albeit a lot less honorable! The rest of the industry gets caught in the crossfire, but as usual normal service will be resumed once the dust settles.
The smarter investors most likely to come out of this the best will be those entering the newer and the most promising long term programs, the admins of which are unlikely to be thinking about fast scams simply because they are unlikely to make much of a profit until well into the next year. Sorry to fans of short term HYIPs. I love the thrill of them too but they have a very limited place in Black December. Not always the fault of the admins, many of whom are genuine, but that’s how the game is played. All it takes is two or three crooks to spoil it for the rest of us, and when it’s your money we’re talking about, not theirs, then you have every right to be cautious.
So what do the rest of you guys think? Agree with me? Disagree? There’s no such thing as a wrong opinion so please share them with the rest of us. Leave the bickering and the sniping for the conmen. Healthy debate and the sharing of experiences will only benefit us all in the long run and is encouraged on MNO so feel free to contact me with any thoughts you have on the subject, or leave a comment on the MNO ShoutBox.