What is HYIP?

HYIP is an acronym for High Yield Investment Program. These programs usually require very little investment compared to the astoundingly high returns they offer. Hence their name, "High Yield Investment Program." A program is considered High Yield if it offers a higher rate of interest than your normal savings account.

A true HYIP will disclose their location, contact information and the administrator will respond to your questions or comments. They will also have a good reputation on various discussion forums. You can also often get more information about payment methods and expected time frames from these types of blogs of discussion forums as well.

How does HYIP work?

Online HYIPs accumulate the funds that have been received from investors. In turn, they invest those funds into highly profitable projects and businesses. This is where the profit is made. The administrators of these programs rarely, if ever, disclose their investment secrets.

Don't let the word guarantee trick you into investing prematurely. In the world of HYIP you are never guaranteed massive profits - or even your initial investment back in some cases. HYIP is very hit or miss, and you should never invest more than you're prepared to lose!

If you're looking to get rich quick or become a millionaire, HYIPs aren't the route you need to follow. However if you're looking for a way to earn a somewhat stable income by having your money work for you, you're on the right track.

Pyramid Schemes are not HYIPs.

It's believed that pyramid schemes have been in existence for at least a century. While a pyramid is a very stable structure, a pyramid scheme is a very unstable business structure. A pyramid scheme involves the exchange of currency for referrals without any type of product or service being offered.

MLMs are not HYIPs.

MLMs are exactly that. Multi-Level-Marketing programs. They aren't "get rich quick" schemes, and they aren't HYIPs. Contrary to popular belief, there is a fine line between a MLM and a Pyramid Scheme. Very simply put, a MLM offers a product or service, but a Pyramid Scheme usually does not.

Beware the Ponzi!

Though they can be disguised to look like one, Ponzi schemes are not HYIPs! Ponzi Schemes offer nearly unrealistic returns on very small investments. The unusually high returns a ponzi offers, and occasionally pays, require a never ending flow of money from investors.

Ponzi schemes trying to disguise themselves as HYIPs are doomed to failure for various reasons. Some of these reasons may include:

* the fact that there are usually no underlying earnings from the money received by the administrator
* informed investors see through the disguise and spread the word
* authorities have interrupted the scheme for selling unregistered securities
* people stop investing, thus stopping the flow of money

What ever HYIP you decide to invest your hard-earned money into, do your research first! Do you want to invest in a daily? Or maybe a monthly? What rates are too good to be true? What companies have a good reputation? How much should you invest? What exchanger should you use?

Despite the risks, the world of HYIP is an ever-growing, ever-evolving business. Online HYIPs allow anyone at any time, with internet access of course, the opportunity to earn money by investing money.

Why HYIP?

If you're just learning about High Yield Investment Programs, you're probably confused by the different signals. People with bad experiences, people with great experiences, people asking questions that aren't being adequately answered - all abound on the internet! So, besides your own common sense, who should you listen to?

Your best sources of information for High Yield Investment Programs are going to be discussion forums. Of course on forums you will get opinionated messages, but you will see complete discussions about the HYIPs you're interested in. If there's no discussion about a specific HYIP you want information on, you can start one yourself. Any legitimate forum will have very helpful members and the administrator or moderator will be actively looking for new members and new messages. They will also be a very good source of information on what's a scam, what's legitimate and there won't be any unanswered questions on their forums.

Just like with any type of business venture or financial program, HYIPs don't provide the same results for everyone.

With that in mind, you have to understand that most blogs and articles are written from a single point of view. Anything written from a single point of view is going to be biased based on the author's experiences. Anyone with a bad experience is going to have a negative outlook on the industry as a whole. With some people, if they've blindly invested into one HYIP and lost their money, every HYIP coming and going is a scam waiting to steal their money and yours! For the most reliable information, stick to your message boards and ask lots of questions.

In the world of HYIP, High Yield also means High Risk. I'm sure you've read the horror stories. Just to be clear, I'm not trying to discredit those who have lost money with HYIPs, I've also lost more than my fair share. I'm simply pointing out that, just like everything else in life, there are those who do succeed beautifully as well as those who fail miserably.

The simple fact of the matter is, you should never go into a financial program of any kind without first researching and learning everything you can. To jump in head first, without factual evidence, is asking for failure. Would you buy a franchise or open a brick and mortar business without first devising a business plan? Of course not! The same holds true with any High Yield Investment Program.

So why would anyone take such a risk? Why would anyone want to invest money into something with sugh high risks of failure? Stop looking at the glass half empty! Too many people say, "what if it fails?"

What if it doesn't? What if it earns you your money back and makes you a nice, healthy profit?

Why HYIP? Why not? As long as you don't go in blindly, you're taking a risk with potentially great rewards. Do your research. Join forums. Ask questions. Form relationships. Devise a plan of action, and let your money make money for you!

Article extracted from HyipJunction.com