Myths And Misconceptions In The HYIP Industry
I think it's time to take a look at some of the popular myths, stories, and general misconceptions about the HYIP industry and mistakes which are made by even the most experienced investors on occasion. I hope that analyzing those myths and mistakes will help us all to make more money in this ever changing industry and understand how it all really works. So let’s take a look at what that means and run through some of of the most common ones. I’ve numbered them first and then added my own thoughts. If you have anything to add then feel free to leave a comment.
1) “I know that 99% of the HYIPs are ponzies but I know that 1% are real businesses and I think I’ve found it.”
This is probably one of the most common mistakes made by investors. Of course it’s very easy, even preferable sometimes, to believe those tall tales spread by HYIP admins about their alleged business activities, especially if the program pays you for a lot of cycles. Even if at first you’re a bit skeptical, then you say to yourself that maybe there is something more going on, until finally you are ready to believe anything the admin has to say to you. The last stage means the admin has achieved his goal and can manipulate you any way he wants. It means you’ve swallowed his cover story hook, line, and sinker and now can be relieved of your money in some very shrewd ways. Your trust will now be an asset which the admin can exploit in his favor. So whatever you do, do not trust admins who try to convince you they are running a legitimate business. These people have their own agendas to make money from you which is the exact opposite of your goal – to make money from them. The mythical 1% of HYIPs are created in our minds to make you believe and trust to what the admins have to say. Overcome it and become wiser and don’t let yourselves be manipulated! ALL HYIPS ARE PONZIES – remember that and always be careful about whom you can trust.
2)“I know some admin from his last program. I’m sure that I can make money on his new one because he was honest and paid well in the past.”
Well, this is an extremely dangerous misconception and I’ll explain why. Sometimes HYIP admins deliberately build up a good reputation on one program and then refund everybody who was not in profit when the inevitable closure happens. Great! What’s not to like or respect about that you probably think. But this is where the scam really comes into play. The members of the previous program see that the admin opens a new one under the same name and rush to pour money into it, thinking that their principal is protected and that the admin is an honest and decent guy. The admin then closes his program as soon as he gets enough deposits which will be a pretty hefty reward for him even if he lost a couple of dollars from his own pocket in the previous venture when he paid refunds. This is where we again see the matter of trust which is being manipulated in a very sophisticated way. So draw your own conclusions if you are going to put money in such programs from “honest and trusted” admins and remember that everything is not what it first appears in the HYIP industry.
3) “I know that the admin is honest because he never ran any programs in the past.”
You can never be sure of that. In 90% of the cases every program is run by an experienced admin who previously ran one or more programs but will almost always tell you “this is my first”. But as they are invariably using made up names they cannot run new ones under the previous alias. It’s so obvious but it’s still not recognized by many investors. There are still some dishonest people who try to put a stamp on every single program and say that it’s run by a particular admin. Well, this is simply hilarious. One experienced admin with a lot of insider knowledge recently confided in me that it's his informed opinion that 99% of the industry is run by not much more than 30 admins who run all types of programs. To label some admins as natural born scammers is ridiculous because if we do this then we can just leave the industry because all the methods used by HYIP admins are very similar and are all based on ponzi schemes. So one particular admin is not always better or worse than another, he just has a different strategy.
4) “If I invest my money via Payza my deposits will be safe because if a program scams at least I will be refunded my original deposit.”
This is another popular myth widely believed by investors. Please note that investing via Payza is a good solution which cannot be disputed, and sometimes even for the wrong reasons. Because HYIP admins are required to verify their accounts and usually do so with fake documents to made up names. Therefore they cannot withdraw the money that fast via bank withdrawals or checks. Remember that when exchanging from Payza to other payment processors there is a limited allowance and can be time consuming. Therefore, as a rule HYIP admins don’t worry too much about their Payza accounts and continue paying through them for longer than PerfectMoney and Payeer. This doesn’t mean though that your funds are totally protected. Taking into consideration the nature of HYIPs you will be paid while the admin has reserves in Payza as they don’t want anybody filing complaints prematurely while they continue the slow process of withdrawing what they can get away with. But when the account dries up the payments will stop and filing a dispute will not help you because the account is now empty. Payza will only facilitate refunds based on their ability to recover the stolen funds. If they are made aware of the situation fast enough and freeze the admins account, they can redistribute what they find there amongst members who were at a loss. It does not mean you get everything back. In fact it doesn’t even mean you get anything back if the admin managed to clear out most of the money before the scam became known. Filing a dispute is no guarantee but if you do get something from them you may have to wait for weeks if not months to see it. So please get rid of such misconceptions of the overall security of Payza deposits – they are better than PerfectMoney and Payeer for sure, but not to the extent that many investors think.
5) “I’m sure that the admin can run only one program at a time so I will diversify my investments.”
Of course diversification into different programs is a smart move. However you must understand that there is always the possibility that you will be investing in programs run by the same person and they will all collapse. I remember one example of an admin openly running four programs at once which all collapsed on the same day. Imagine you invested in all of them! So be aware that one admin can run many different programs and try to watch out for the similarities. Do not be fooled, guys!
6) “If I find out an admin ran a particular program I will definitely invest in his other programs because I made a lot of money from the first one which ran for a very long time.”
This is also a pretty dangerous strategy that can cost you a lot of money. I remember one admin who ran an excellent short term program that surprised everyone with an incredible 70 day life span a couple of years back. The admin took advantage of the enormous support shown to him by his members after running his first program so “honestly”. So he started another one with similar plans and concept straight after the first one finished, all done under the same name. It’s no wonder that many investors believed his intentions were good and invested a lot of money which of course they never saw again. Blinded by their own unconditional faith in the admin’s capabilities of running every program for such a long time, they didn’t stop to think that there’s always room for something to go wrong. So please don’t be fooled by that. Remember that the same person can have both good and long-lasting and bad programs which could be hit hard by hit-n-runners, DDoS attacks, payment processor issues, or indeed any number of problems. The issue of trust can be manipulated in order to make you think that it’s relatively safe to invest in one particular program. An admin can even issue refunds to members in one program and after gaining their trust run another short term scam which will cover the expenses of the first program and then make him an enormous profit. So please be careful about that too.
So, let me just wrap it up by saying that I sincerely hope you found some food for thought in all of that, and as always don’t be shy in raising your own voices on this or any other topic covered in any article you read on MNO. Debate and discussion is the key to educating yourself in this industry (the don’t teach it in school you know!) so if you do or don’t like anything feel free at all times to leave a comment on my ShoutBox or contact me directly.