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.