HYIPs can offer fantastic profits but can also bear a lot of risks. Following some basic rules will help you avoid losses, and even better, make you making money. My Golden Rules are:
1. NEVER invest more than you can afford to lose.
Invest only extra money you normally spend on luxury items into HYIPs. Never risk the money you usually spent on first priority goods. It isn’t clever to invest money into HYIP that is supposed to pay your housing bills. High Yield Income Projects are always risky and it is dangerous to risk the money you need to support yourself.
2. Don’t be greedy
Even if you keep getting decent profits for several months, it’s no reason to think that this is sustainable. A high yield project can close any time. No one knows when, not even the admin himself. You may find yourself with nothing if you spent your money recklessly.
Don’t be tempted to invest in so called VIP plans that offer extraordinary profits if you invest higher amounts (>1000$). Those deposits are so called “donors” that will be used to pay regular users.
Admins don’t rob banks. They are simply moving money from one investor to another.
After all, big deposits don’t help the lifetime of a project.
3. Break even as soon as possible.
Don’t be tempted to reinvest with profit until you have taken your principal amount out of the program. Plans where deposits are included in daily payments are to be preferred. They will allow earlier break evens. It the plan is 5% for 30 days, on day 20 you reach the safe harbor.
Spread your risk. Choose a range of programs with varying levels of risk so that you are not dependent on a very few investments.
5. Research the investment program before you invest.
There are a series of checks you can do to test the reliability of the program. One way of analyzing HYIPs was posted here.
6. Use the minimum investment amount to test that a program pays.
Make sure the withdrawal mechanism also works. Withdraw regularly. Don’t save for one big withdrawal.
7. Don’t trust the information published by HYIP monitors.
In 95% of cases that information is being paid by the admin.
8. Stay away from projects with lousy customer support.
If you cannot get any answer from the support team, you’re probably better off not investing in that project.
9. Don’t ignore the work your upline does.
His experience can help you make the right choice.
9 1/2. Hit and Run
There is one more rule that many HYIP bloggers would mention: Hit and Run.
The Hit and Run strategy is one of the main reasons why the HYIP industry is in such a bad shape today. Many investors would join a project in its first days, get the profit and run away as soon as the first deposit expires. If too many do the same, the project will lose performance fairly soon. The smarter the investors get, the shorter the lifetime of the projects. This is what we keep observing today.
That’s why the last rule is somewhat contradictory. It helps you avoid losses, but kills the project at the same time.