Hi, guys! I’m back today with the second issue of MNOFridays. Today I would like to discuss a very important part of the online HYIP industry which many investors, particularly newer ones, are not that familiar with. It’s something which can somehow be misleading and put you in the very dangerous situation of believing that an online HYIP has a real source of income. I am talking about “piggybacking”, an issue that is often talked about among experienced players but rarely discussed by newbies.

So before continuing the topic let’s try to describe “piggybacking” in terms of the HYIP industry. A dictionary definition would be to take a ride on somebody else’s back. In other words for someone else to do the work while you get carried for free. In HYIP terms it’s the practice of accepting money from others and then redeposit it to one or more other HYIPs. So when you think you invest in one program you may actually be paying for somebody else’s investment in a completely different program. And you may or may not be informed of this. Confused? Let’s take a simple example that everyone can understand.

There is a program called “X” for convenience. It offers you 1% for 300 days and is paying perfectly well for many months. You actually start to believe that Program X might just be a real business opportunity because it continues for such a long time. You ask yourself if they have a real source of income, or if the admin is such an honest businessman because he’s been paying you for so long. Well, the secret of such perfect performance is simple. The admin of “X” heard about two other great programs: “Y” that pays 2% for 200 days and “Z” that pays 3% for 100 days. So the clever admin of “X” decides to simply reinvest your money in those two programs. He continues to pay you the smaller percentage of 1% as usual while keeping the bigger profits for himself. Now of course Admin X would prefer if you remain unaware of this. After all, if you found out then common sense would dictate that you leave Program X and invest directly yourself to Y and Z, right? I mean that’s where your money was going all the time anyway, so why not you make the profit generated by your own money instead of Admin X? So most likely Admin X will continue with the facade that he is a regular businessman with regular business investments. ForEx trading for example is a popular one, but there are many others. Some of which are quite colorful, even amusing, but unlikely to be true.

Of course, “X” program will be stay online and pay happily ever after. But only to the point when programs “Y” and “Z” collapse. Well, it could still go on for some time if only one collapses but eventually once the outgoing payments begin to exceed the incoming funds, the collapse of program “X” is imminent.

I guess now when we that explained what piggybacking in the HYIP industry is, it becomes clear how the collapse of such giants like GeniusFunds, GNI and PanaMoney affected a whole lot of smaller HYIPs, the admins of which were totally dependent on the profits paid by the bigger programs. That is how the so-called domino effect was created when not only the biggest programs but also a bunch of smaller piggybacking ones collapsed one after another causing the mess that the HYIP industry finds itself in today. This in turn was only worsened by StrictPay’s continuing failure to pay their members. That in turn created a further wave of losses to investors otherwise obediently following one of the most important industry rules – diversification.

But what is the purpose of diversification if we know that many smaller HYIPs reinvest your money anyway, often back into programs in which you yourself are already a member(!) and will collapse “like a domino” when the bigger one inevitably folds? That is why it’s imperative in my opinion for a better chance at success and be in profit you must define the leaders of current HYIP market and to keep most of your initial investment in them. And keep it there yourself! Not through some second hand (and second rate) piggybacking ponzi that simply collects the profits earned from your hard earned money, merely to throw you a few crumbs from the table when their done. It’s essential if you want to succeed in the long term, so keep reading blogs and forums and form your own opinion about the top programs that you consider the best and spread your own investment between them. What is the reason for handing your money over to someone else to do it for you when they reinvest in the bigger ones anyway, but keep the money that you should have earned?

This is how the things worked in the industry for quite a long time when giants like GeniusFunds, PanaMoney, etc. paid thousands of dollars to both investors and piggybacking admins which made everyone happy. The problem now is that after the crisis the leaders in the industry are still to be established. Good programs are still out there. They always have been. They have just gotten a bit harder to find. So without any obvious leaders the small HYIPs still open every day but just can’t seem to make it last for more than a couple of cycles due to inability to reinvest into some more established industry leaders.

In my opinion, we will all see the revival of the industry once three or four leaders establish themselves which will inevitably lead to another procession of piggybacking admins following suit. As per usual you get the scraps while they collect the bigger prize, helping themselves in turn survive the traditional seasonal industry slow downs. The so-called “Black December” for instance which happens close to Christmas, or the summer holidays, neither of which are usually all that fruitful for investors. So until the industry sees such clearly defined leaders it remains hard to maintain the long term stability of smaller HYI programs either.

Sometimes though the admins of some HYIPs clearly state that they are piggybacking on other programs. A recent example was FlipReturn, the admin of which boasted that they had unique structure and always re-invested in some huge programs. The program had its own newsletter in which the admin gave a short analysis of HYIPs and explained why she invested in one program or another.

Everything worked well, until they were exposed by MNO and some sharp eyed forum readers who noticed that payments from a totally different program were also being made by FlipReturn‘s admin. It caused some confusion but I myself dropped the program from my monitoring due to some personal issues with the admin. FlipReturn collapsed shortly afterwards. I must say that the admin of FlipReturn made it sound like they actually invested the member’s money though we never knew it for sure of course.

The admin went by the name Gertruida (or sometimes Gertrudia, she was never able to spell it the same way twice!) who was helped by a fictional friend called Klaus who opened his own investment program and blog. This consisted of one day posting stolen copy/pasted articles from copyrighted sources he claimed to be his own, then the following day a slightly more “original” article badmouthing MNO in embarrassingly sub-standard English. You needn’t be Einstein to figure out that the story finishes with the collapse of both programs. This happened at a time when the big programs they were allegedly piggybacking on were all still paying nicely. So the one instance where the admin actually admitted to piggybacking still ended like it so often does with any HYIP – in a scam.

Who loses money? You of course, the investor. What happened the admin? Well no doubt she and her “friend” survived with plenty of stolen cash and may well have re-emerged with a new name and a new website to once again launch a new piggybacking ponzi. All paid for by you of course. So even if an admin clearly states that he/she piggybacks on other programs and even give you analysis and reviews of the promising ones, please note that it’s all done just to make you hand over your money so somebody else can profit. The end result will still be the same as a blogger cannot be considered as an independent source of information when he/she either runs a program himself or has a vested interest in the fortunes another one. Just remember Edward Brown who famously tried to run his own program while simultaneously monitoring it at the same time. He tried to run a blog but he couldn’t put so much as a paragraph together without insulting the pants off just about anyone unlucky enough to stumble across it and it was peppered with the enough four-letter words to make a sailor blush. The most hilarious thing I remember was that he reviewed his own program (which naturally received 5 stars), and then asked me to tell him what programs he “monitored” had actually stopped paying when he kept every scam online in paying status for weeks on end! All the while his own joke program EdwardBrownInvestments remained top of the list while stealing from anyone gullible enough to join.

Piggybacking has been and will always be a part of HYIP industry. But remember that you can always make the analysis by yourself and put your money into a few leading HYIPs by diversifying it properly instead of entrusting it to some piggybacking experts that will promise you the sun, moon, and stars but only pocket the money that you should have earned yourself. How to do it yourself? By constantly educating yourself and only treating all HYIPs like the ponzies they are.

Again do not be fooled by any ForEx, silver, oil, fish farms space exploration, or whatever piggybacking stories spread by somebody who discovered a magic formula for eternal profits and wants to share it with you. Ask yourself why they are doing it and if there are some personal motives involved beyond his desire to help you. And if he knows the secret to making money and offers you to double yours in a few months ask yourself why he needs your money to do it. Because if you are able to double your money within a few months you would be a millionaire yourself in no time with only a minimal investment.

The answer is simple – to invest his own money in HYIPs is a risk he’s not willing to take. But if it’s your money he’s spending? Well, that’s a different story. He will gladly reinvest that for you. That is why it’s much easier for him to say – I’m going to deposit your money in selected HYIPs, piggyback for you, trust me, I’m an expert in this field, etc, etc, etc. The end result is this – you pay, and he profits. And in the unlikely event that you do ever profit remember that for every $10 you collect your piggybacker collects $40. Now, whose pocket would you rather that money be in? Well, I guess if you’re a professional you should invest and multiply your own money first before proclaiming yourself and expert and an “I’m always right” type of person. We all are not ideal people of course but with due experience I’m sure that MNO readers will be able to pick out the real gems and promising leaders in the HYIP world straight away and draw the necessary conclusions. Conclusions that will help you develop your own unique strategy and apply them to your personal needs.

That’s the end of MNOFridays for tonight but I will one for you again next Friday. Please keep offering your own ideas for future issues of MNOFridays which will hopefully help you understand better how this industry really works and avoid the more obvious (and hopefully less obvious) scams.

DAILY NEWS FROM THE INDUSTRY.

For the last few weeks Fridays have also became a pretty quiet day in the HYIP industry. I believe only the mid-week actually brings some really important updates from the programs while the rest of the week is usually quiet. Well, as there are fewer investors making smaller deposits than usual, it’s understandable that some of the admins usually avoid posting too often.

Anyway, the most interesting news for today would be an attempt to try to persuade you to register in a program and spend a fortune in a short-term plan. That was the plot from one scammer hoping that some investors would not be so attentive hand over their money without thinking. I’m talking about OilStructure and a spoofing email some of you might have received today. On closer inspection it appeared that the email originated from the phishing site OilStructure.net (NOT the real OilStructure) attempting to steal money by announcing a non-existent plan. Please note that the real OilStructure has only .com extension and can be only be accessed via the domain OilStructure.com. Just for your information I will put the whole phishing email from the fake OilStructure.net site:
“From: “admin@oilstructure.net”
OilStructure has been online for many days and we have many thousands of investors from all over the world. And many investors requested us to add a short term investment plan. After our consideration,now we decide to add a special plan 105% daily for 1 day.Anyone who wants to join this plan should create a new account.
You can go to hxxp://www.oilstructure.net/?a=signup to join our Special Plan.”

I would like to give some kudos to the administration of OilStructure (reviewed here) who reacted very fast to that fake message and in less than an hour I received a warning from them about phishing and spoofing sites operating online under names similar to OilStructure. Please be very careful when you deal with online scammers and don’t let them fool you! Here is the most recent short warning issued by OilStructure which like most successful programs is a target for scammers and some dishonest monitors alike:
“Dear member!
Oilstructure.net is scammer site. Be attentive! Our website is only Oilstructure.com
PLEASE! *** Do not be scammed by “oil-structure.com” or “oilstructure.net!” ***”.

Friday also means that for the weekend the cashout button in 144CashAds will be closed as per their rules. Please note that members participating in all six 144% plans will receive a $10 bonus but will have to contact support for further details. To find out more about the six plans and the unique investment structure in 144CashAds please refer to my review of the program published here. This is the pre-weekend update from 144CashAds:
“Hi, Welcome all new members. Enjoy earning with us.
All payouts done. Remember payout button disabled during weekend.
Please all 6 plan holders members send request for 10$ instant bonus through support mail with providing their user name.
We start payment from 1st sept.
Thank you. Lewies
Project admin”.

I’m delighted to announce that after 3 weeks of monitoring in Basic listing the admin of Vodapex has decided to upgrade to Premium listing, meaning the program will be reviewed pretty soon on MNO. The admin explained his decision to upgrade the listing due to the site having been updated since the first being listed on MNO and is just about ready now. I can see that Vodapex started offering daily instant payments to both LibertyReserve and RoutePay accounts since I first accepted them for monitoring (according to FAQ PerfectMoney payments are still being processed instantly as well). In addition a monthly referral contest with a whopping $1,500 in prize money was announced and the weekly financial report is now being sent to the members regularly. The investment plans remain the same and by investing in Vodapex you can earn 2.8% daily for different investment terms. They range from 45 to 120 calendar days (depending on the amount you want to deposit) and on expiry you will receive from 24% to 30% of your capital back depending on your plan. I think that the plans are unique and well thought-out as the program itself. Vodapex is running off a totally original script and is hosted on a dedicated Staminus server with Koddos protection against malicious attacks. Despite some not very original texts the overall impression is good and will be thoroughly discussed in the upcoming review of the program on MNO. So far Vodapex has been paying fast to everybody and I expect it may continue for some time because the investment plans are quite sustainable and the program is pretty well organized.

I have been paid today by the following programs featured on my monitoring page:
FundsOMatic, GlobalTradeManagers, UniteTrade, OptimumPride, OnyxInvClub, WorldPrivateFunds, YamaFinance, Vodapex, OilStructure, ReProFinance, PawnShopFund, FutureTrails, ForexCompanyOnline, EzProfit, MutualTreaty, VividTrade, 144CashAds, CherryShares, RedOrchidInvest, YesInvestment, AvaInvestment, HOX, Flamanta, OnlineMDT and InWolton.

That about it for today. I’m pretty tired now after spending a few hours hiking on the spectacular Mount Floyen, one of the mountains overlooking Bergen. I wish you all a very pleasant weekend and hope to see you on MNO tomorrow with the review of another new program GloTrade and more news from the HYIP industry! Stay tuned and stay safe, folks!