The Need For Industry Leaders
You know, it kind of occurs to me that in previous years the industry traditionally moved in cycles. Much like the changing seasons of the year, January into spring time was always a very prosperous time in the industry. A bit later on and investors/admins were a bit more interested in their summer vacations, especially true for younger players with the universities and colleges closing up for extended periods. Come September/October again and boom! An explosion of great opportunities was always practically guaranteed to come again which would last right up until the end of November. Then, at the first mention of Christmas, things would take a massive dip once more, with investors having far better things to blow their money on than gambling with HYIPs and admins more interested in scams for much the same reason.
This is by no means “written in stone” as they say, being much more a basic guideline as opposed to an exact science. I mean kudos to those admins who made a real success out of their own individual programs, you can ask no more of them than that, the bigger picture for the HYIP industry can sometimes be a lot less impressive when you might have expected better. The biggest thing that strikes me however is not so much that the industry has such extreme highs and lows, that’s happened in the past and will happen again, it’s the fact that widespread success is based on the necessity for “industry leaders”. You know, really big giant programs that act like locomotives pulling the entire industry behind them and benefiting other programs, investors, admins and the like indirectly as well as themselves. Depending on how long you’ve been in the industry I suppose most of you will know some of the names from previous years, now of almost legendary status such as GeniusFunds, GoldNuggetInvest, more recently Royalty7 I suppose and its sequel Carbon7, RockwellPartners sometime back as well, but all part of history now. The benefit programs such as these (among so many others) was that their success was so enormous it really boosted the confidence of investors, and in profiting from them it also gave them the means by way of an extra couple of dollars to perhaps take a chance and spread that money out among other investments in smaller programs.
The case of GoldNuggetInvest is probably the most curious. They were by some considerable distance the biggest program in the industry, something achieved with an almost total lack of advertising, monitoring, and a very sharp and hostile, practically relentless campaign against them on one of the main HYIP related forums. MNO was their only official monitor and the only website where they ever paid for advertising (sure, there might have been others, but they were generally placed for free to display the members ref link). Despite that, they still proved capable of running the single biggest HYIP I have ever seen, either before or since. My point? Leadership. Pure and simple. GNI was, (as was GeniusFunds and the other programs I mentioned) almost like an online money making factory. Admins with a clear vision of what they wanted to achieve and how to go about doing it. So many other programs also flourished, though to a far lesser degree, while the real leaders carried the rest of the industry along with their own momentum. Very often this was down to the practice of “piggybacking”, that is to say one HYIP investing their members money in bigger HYIPs, thus financing payments for a whole host of other investors. But without a clear leader the rest of the industry is something like a ship without a captain. And it’s without a clear leader that the weakness of the rest of the industry has now been exposed over and over again – low grade scams with no operating budget and unqualified admins taking over. So many new programs are either set up with the deliberate intention to be a fast scam, or else perhaps their intentions are better but the admin simply doesn’t have the skills/knowledge/experience to make it happen.
The point I’m getting at here is that the success of the HYIP industry as a whole is a collage of many other factors. Good payment processors, program scripts, hosting providers, etc are all essential to the industry, but the glue that holds it all together is the investment programs themselves. Without them, and their investors, there is no HYIP industry. So in many ways a small group of really strong programs, it doesn’t even have to be more than two or three, is really essential for the success of everyone else, regardless of whether you actually join all of them or not.
Every so often in the industry, not necessarily at the time you are reading this article and again with all due respect to the admins trying their best to run good programs, there isn’t always a “must have” HYIP out there that every investor wants at the top of their portfolios. And I for one believe this presents a massive opportunity for someone when it happens. Experience shows that there is a clear appetite out there for good quality programs. There always has been, it just looks worse than it is when the demand is not being met. It’s sort of a “catch 22” situation, with admins not going to huge expense on new programs for fear nobody will join, and investors not spending big money because they don’t see any admins making a serious effort. Well, someone’s gotta go first guys! To paraphrase the old Kevin Costner movie, “build it and they will come”.
Of course, in many ways it’s better that more and more investors are waking up to the fact that no, they don’t have to put up with any garbage that’s handed to them simply because there’s nothing better around. They are less likely to be taken in by the obvious scams and are staying away, and there’s nothing wrong with that. For my own part I try to help the process along by only welcoming professional admins with the highest standards on MNO. Lazy admins just out for a fast buck at someone else’s expense and not prepared to do any real work to earn it can look elsewhere (and there’s no shortage of options for them, by the way!). Investors of course can also play their own part and help revive the HYIP industry (many already do so) by simply avoiding the more obvious scams and not making it worth the admin’s time and effort.
Smart admins are fast coming to a realization of that fact and should be rolling up their sleeves now to pull out all the stops to put this to rights. Smart people who know how to make money will tell you, every problem/crisis/challenge/obstacle is also an opportunity. I sincerely believe that when the need most arises we will begin to see some of the better admins taking those opportunities. And you know, it doesn’t have to be as difficult as you might think. For example, when the HYIP industry was at its absolute pinnacle a few years backGoldNuggetInvest (the single biggest program in a golden age for HYIPs) only ever bought advertising and monitoring on one single website. This actually had the affect of making the program even stronger, saving countless thousands of dollars that would otherwise have been wasted on resources that would never have paid for themselves or justified the expense by bringing sufficient returns. Can such an industry flagship be far away? My belief is no, things always bounce back because supply will return to meet demand as long as there are enterprising individuals out there prepared to work. I mean it could be years before we see the HYIP world back to pre LibertyReserve days, but with the right admins taking leadership of the industry again then at least a massive revival is easily possible. In many ways it can be a bit like the construction and property business – sometimes when things are at an absolute low is when you find the best opportunities for the highest possible and longest term profit if you have the courage and skill to take it.
To give you a personal example, I could if I had wanted to, made a lot of money from the waves of scams that occasionally blight the industry. How? I simply need to accept them for monitoring, that’s all. But I don’t. I mean in the long term what would it ever achieve? An easy couple of bucks at the expense of standards, business ethics, and reputation that took years to establish. No, I think those are too valuable to sacrifice for the benefit of scam admins who don’t care about the damage their actions do to the wider HYIP industry in the longer term. So I’d rather not monitor them at all and in doing so preserve the name of MNO as only being associated with high quality programs where members stand a definite chance of making money. The risk will always be there, we all know that, but I think the best programs will always be on MNO, and I strongly believe more of them are coming even if not everyone recognizes them immediately.
Incidentally, before I finish I just want to add that I’d really like to hear your own opinions on what you have just read above. Agree or disagree, I’d love to know what you think and why. Contact me by e-mail if you want, or to share it publicly with your fellow investors you can say it on my ShoutBox. Remember, it's good to talk!