HYIP: Evaluation
Before you invest money in the project you have interest in, surely you need to analyze every aspect of the program.
1. Amount of regular money payments.
2. Investment limits.
3. Specifics of the activity.
4. Trustworthiness to program organizers.
5. Your impressions from the web-site.
6. Domain check.
7. Contract information.
8. Materials and opinions on specialized forums
9. Position in rating sites.
10. Independent research.Let us consider in detail every item.
1. First of all you need to evaluate the amounts of regular money payments, i.e. the
interest from the investment capital to be paid by the administrator’s projects.
The main thing is not to get caught by promises. If the program promises you everyday
doubling of the invested sum, be sure it is a fraud. The average amount of
payments under serious HYIP makes up about 3-4% per day. There may be
insignificant deviations. But 7-10% per day with almost no doubt indicates that the
program is a ponzi scheme and the money will be paid to the investor at the expense
of new members. As we have clarified earlier, such programs do not promise
anything good to the private investors. Some projects offer variable every-day profit
based on the program’s incomes. As a rule, such HYIP are actually do business trying
to effectively accumulate investor’s money and are not eager to lie to their investors.
The statistics shows that the most serious high-yield income projects guarantee
monthly payments at the amount 10-50%. Besides, the numbers may vary depending
on the specifics of the activity.2. Another aspect is the investment limits. They are the limits for minimal and maximal
amount of investments. It may seem the minimal bottom and no maximum for
investing demonstrate the openness of the program and its desire to cooperate with
the clients who have different financial abilities. However, as the practice shows the
serious investment projects always determine the minimum and maximum for the
investment. If there are no investment limits you should think whether it is a ponzi
project; whether the organizers hope by attracting more and more investment pay
interests only at their expense.The statistics shows that the most serious high yield income programs establish the
minimal limit of 25$ and strictly limit the maximum.3. Almost every HYIP says about what form of economic activity will create the profit.
Earlier we have given the list of the most popular sources for such investment
programs and we are not going to repeat it. Let us note that if the web-site says that
the program ‘is connected with the FOREX trade and other forms of business’ you
should know that it is most likely to be Ponzi. The leaders of serious programs,
surely, are not eager to open all details of their activity. There are many dishonest
dealers in the world of on-line HYIP who are always ready to bite from somebody
else’s pie. However, there are general schemes for all serious programs. The Ponzi
creators rarely develop complex schemes because they won’t use them anyway. The
fraudsters usually say few words that the profit is created by playing on currency
exchange market. The serious projects’ leaders try in detail to explain to the
investor how the money will be used but not revealing any company names, amounts
of investments and trader’s names.4. However, there have been cases in HYIP when Ponzi projects easily covered under the
serious projects and their administrators revealed to the clients the reports about
market fluctuations and information about the investments made. As the result those
HYIP turned out false and their investors lost their money.
Another aspect is the trust in project organizers. You should carefully study messages
the administrators leave on forums and analyze the messages. Pay attention to how
much time the project organizers spent on the forum. If they say that they do
business, they should lack free time. In case they are on-line on the forum from dawn
till dusk you should consider whether they are fraudsters.5. Your impressions from the web-site are one of the most important aspects allowing to
evaluate the relations of the projects leaders to their program. Good engine, private
domain and functional design, simple to use and effective feed-back means do not
surely say about the honesty of the program administrators but at least indicate they
are serious about the project and have invested money into it. In case the site is
hosted free of charge and does not have good design, its content is stolen – it shows
the administrators are not serious about the program and they did not spent any
money themselves. You should think twice before investing your savings into such a
project.6. If the project has its own domain name, you should check it using a special ‘whois’
service (http://www.whois.ws). Here you can get to know the registration details,
contact information, name and last name of a person who has registered the domain.
Surely, this method cannot guarantee anything because many domains are registered
anonymously and the fraudsters easily may give false information. You should
carefully study the information given by ‘whois’ service and to compare it with the
information you have about the project’s founders.7. The more possibilities administrators of the project give to maintain the effective
feedback the more trust to the project is given. The possibility to directly discuss the
details and program specifics with the leaders at least proves the fact the
administrators are interested in the cooperation. Besides, often the high yield
income project’s leaders try to stay anonymous. In the conditions of today’s business
it is rather reasonable and cannot be considered a direct sign of fraud.8. Carefully study the specialized forums dedicated to the high yield income programs.
As a rule, many experienced investors who have participated in many programs visit
them. Especially it is important for the beginners how have just started their on-line
investing. Thanks to the forums communication you can reveal serious weaknesses in
the HYIP you got interested in, learn the opinion of the investors who already
participate in the program. HYIP forums are rather good source of the newest and
impartial information and you should not disregard it.9. After analyzing information on the rating sites you may learn whether the program
pays interests at that moment and how long the program exists. However, this
information are less valuable than the information from forums because there are no
guarantees the project that successfully pays interests today will pay them tomorrow.10. Finally there is a possibility to check the HYIP by independent organizations.
However, today this way is actively used by new high yield projects with a view to get
additional advertisement and possibility to distinguish themselves from other
programs. In order to hold the inspection the project leaders shall give their real
contact information (address and phone number) after that the independent
organization analyze the information and make their conclusion. Often there were
cases when HYIP leaders have given false addresses (for example, address of some
supermarket or parking lot) and have received the approval of the independent
organizations. It happens due to the fact that many organizations just check the fact
there is address like this and do not check other aspects of the business activity.
In other words none of the abovementioned aspects can guarantee the fact the
project is false or reliable. Only by studying them all you can make adequate
evaluation.There is a formula that helps to determine the approximate lifetime of a project.
Project’s lifetime= (SD + SH + KR) * (NO + NF + WD + GAR) * (NKI + SKW + SKR)*365 / ((KI / SV) * (KO + RT + 1) * (KS + STR)*100000)
Where
SD – approximate cost of design;
SH – cost of hosting;
KR – advertisement expenses;
NKI – presence of contact information;
SKW – compliance of the indicated contact information with the information given by
‘whois’ service;
SKR – compliance of the indicated contact information with the real addresses and
phone numbers;
NF – presence of forum, quality of its development;
KO – number of mistakes in web-site’s content;
RT – deviations in text (if the content is stolen with different sites or written without
giving any consideration, the text will have incompliance);
KI – dynamics of growth of investor’s number during the first week of project’s
existence;
SV – sums of investments;
WD – information on business activity the program gets incomes from; subjective
evaluation of data adequacy;
GAR – presence of guarantees;
KS – number of persons engaged in project’s maintenance and support;
STR – place of project’s accommodation;
NO – presence of office.
Every the abovementioned parameters has its own value and putting it into the
formula we will get the approximate term of project’s life. The formula has been
used many times and has shown the accuracy of calculation in about 86% of cases. A
mistake in the evaluation happens when the serious owners hide their contact
information because of some reasons not related with the HYIP activity.