Risks in HYIP industry (HYIP)
Statistics of SCAMs and losses among investors shows that HYIP industry is risky. Actually, any of more or less skilled players in this area with confidence will tell you that you can earn here with correct approach, but can't get constant profit, it is impossible (of course if you are not a skilled ref-bringer; we'll tell about in next article).
What it depends on? Mainly - human factor, to be exact - unpredictability of HYIP founders. It's very simple; you never know what exactly on his/her mind. Whether he/she created the project and will pull it up to the end or the plan is - «thank you and goodbye». Ambiguity along with practically impossibility to return the money, make HYIPs rather brave business. Still, there is some methods to distinguish potential SCAM from diligent administration.
There is some ways to see what the project is. For example, to have a look at design, to estimate it from esthetic point of view. Many admins try to make shiny/cool/fancy and on the contrary - something muffled tells about unwillingness of the founder to spend for it many forces, resources and time that should serve as a signal for you. Project's functionality, protection and script (whether it licensed) is important too. From quality of this components and how much the cost was for the admin, we can judge about further intentions.
However there is also objective risks and they are connected with the general orientation of the project. Judge for yourself, who have more chances to live long - low-yield with 10% monthly payment or MLM-games with doubling in a day? There is simple mathematics. The more percentage, the more obligations, the more pressure on the project and increase intensity of payments. If the administration can't cover the outflow of means (it grows constantly) with inflow - the project is going to be SCAM. Accordingly we can draw a conclusion - any "tasty" investment plans, any multilevel ref. system and other bonuses shortens HYIP life-time, especially it concerned high-yield systems where term of life takes days, therefore choose them wisely and during correct time.
About that «during correct time». Many of you may say that it is better to enter on start as it can secure you against loss as much as possible, after all the first who will withdraw the money. Fatal mistake of beginners. Certainly, your chances is always higher on start of the project while it is fresh and can deal with inflow/outflow, but such logic isn't new and it's already used by dishonest administrators of various one-day-projects. Principle is simple, but very dangerous: create "tasty" project (it's not always high-yield) that would satisfy even not all audience (skilled investors are not so silly), but only the most "naive" and trustful part. It is enough to collect some thousands. And after the project collect the necessary sum and before essential payments (everyone would like to leave more for themselves), close the project and withdraw all money.
It is necessary to notice that not always similar projects are characterized by poor quality. There are also quite "elite" projects, they are made quite good and this is a trick too to collect more money on positive responses; that is why first days or even months connected with unpredictability that makes investment in them even more risky, rather than through some period of time.
HYIP is a high-yield place, but you have to pay by big risks and uncertainty. Therefore not all investors are involved by this kind of earnings, however HYIPs have the audience who make this way of earnings still attractive. And the universal method of earnings here - the analysis of the project, drawing up of the opinion on this project and other responses, especially from those who already know all kitchen by heart.