What is a HYIP?

Simple: High Yield Investment Program.

HYIP's are all over the net. You can see them when ever you search google for investments. They are the one's that offer you a crazy insane amount of a return. Sometimes even %30 a day. For those who are new to the investment world, those kind of returns just cannot be produced, no matter what.

You might say, "hey, I tried one of those programs and I did receive those returns for several days." Yes, you're right, that's exactly the way they work. They give you the money that fresh blood brings in. This is called a "recycler" program. So you're talking about several days, several weeks, or if their really good, several months or even a year until they eventually close down and no longer can match the amount of money that needs to flow around to keep the program moving.

Trust me, before you lose you're money in one of these scams, there are many that have lost their car payments and mortgage payments in these programs. If you don't believe me you can go to www.talkgold.com or www.scams.com and go to the forums and search invex or ingenious packages, two popular almost legendary programs in the HYIP arena. You see will a list of complaints and stories of how people lost their life savings.

Even though that this is true, they are many people who still choose to invest in these programs while understanding the program is run illegitimately. They consider it pretty much betting or playing a game. Some of these websites are even referred to as games to take away the heat that it would receive if it was named an investment opportunity. The trick is to invest within the first couple of weeks and then run. Many people utilize this tactic because most HYIP's do not last over a month or two and because with the insane interest rate you can profit within a couple of days.

Even if you have never heard of HYIP's, trust me they are around and plentiful. Several of these websites open up every day and lure innocent individuals like yourself looking to make some extra income. The amount of these websites are staggering to say the least. You can check out a HYIP monitoring site like www.hyipmonitor.com and see the amount of websites there are and how many are being added on a daily basis. It's unbelievable to know that these website keep popping up and nobody regulates them.

So You Say How Do I Know It's A HYIP Program?

Well, it's never easy to say, but there are few guideline you should follow:

1) Egold

Be careful of programs that require you to send money through this service because egold transactions are permanent and cannot be reversed or stopped unlike Paypal or using a credit card. This is perfect for someone who doesn't want to provide refunds and just run away with your money.

2) Guarantees

No investment program can provide guarantees or should, mainly because the government will keep their eyes on programs like these and so should you. So when ever you see a guaranteed, "10% return in one week", run!! Investment markets are volatile and fluctuate from second to second, so the only thing you should except is a chart of the programs history, but even that doesn't guarantee future success.

3) High Returns

Astronomical returns are a sure sign a company is a scam, 20% to 30% a month should be a red flag for anyone looking for a good investment program. Stocks usually average about 5-7% return a year and the high performing ones may only go as high as 30% percent within one year.

Whenever you do invest. Just make sure you do your Due Diligence on the company or group your investing with. Such as:

- Company History

- Licenses

- Complaints with any bureaus

- Complaints on any forum boards

- Performance History and etc.

Investing should not be looked as a get rich over night scheme but a way to help your income to grow steadily and continuously.