HYIP - High Yield Investment Programs introduction

HYIP's, or High Yield Investing Programs, are very common nowdays, in fact hundreds of new programs are being openned (and closed) every month. Most of them may seem real and legit investment opportunities to a newbie investor, as he sees high returns, professional scripts and hundreds of members investing thousands of dollars. HYIP programs are usually heavily promoted by their members, because they receive referral comissions of 5%-15% on every investment their downline members make. So, supposing that a HYIP is paying 10% referral comission, if a member promotes his link and refers 100 members and each of them invests just $10, he can easily earn $100 - that's why there are so many people spamming forums, newsgroups and sending unsolicited emails. Most of those HYIP's close either few weeks or few months after they were started and members who lost their money never receive them back. Those HYIP's claim to be real trading programs, earning their income on forex and offshore trading, but actually very few of them are Real Trading HYIPs.

If you have already had an experience with HYIP's, you have probably encountered such programs and know what I'm talking about. My first HYIP investments were a failure and I started by losing my money, but very soon I realized how to find out which HYIP's are Real and in this article you will see how to distinguish a Real HYIP from a ponzi scheme.

Real HYIP Investment

Real HYIP programs are run by experienced traders, who have a way of producing high returns. They methods and techniques may vary, but all the Real HYIP's are involved in certain financial activities, trading with Commodities, Precious Metals, Arbitrage and Foreign Exchange. Others may invest in Start Ups and IPO's. They are using dedicated, unique software systems or very experienced traders and most up to date imformation. High returns also involve high risk, but the risk in Real HYIP investments is very low compared to investing in ponzi hyips, which can eventually close at any moment.

Those real HYIP programs usually don't have any referral fees, but some of the mutual funds investing in those programs may have 2%-7% referral fees. Real HYIP usually receives members by invitation only from existing members and it can, at certain time, become closed to new investors, but still be operating and paying to old members. For example FSI, which was also assoicated with The FeederFund has recently closed to new members.

While most of ponzi HYIP's are very easy to identity, lots of others may seem like Real Investment Opportunities. The following tips will help you to recognize Real HYIPs with a very high degree of certainty.

Real HYIP Properties

There few points you should consider when determining whether the HYIP is real or not. This is not a set of strict rules, and should be used only as a reference, it may not produce 100% results, but will definitely help you decide which HYIP is not real. Try to compile your own list of rules using the following ones and also your experience.

• Reasonable varying returns
  Most of PONZI HYIP's attract members by extremely high daily returns up to even 15%-35% daily! No real investment can produce so high results and those HYIP's usually close or stop paying after few days. Real HYIP's may have high returns too - even up to 1% daily - based on the fact that highly skilled professional traders can pruduce over 1% daily. This 1% should be considered a threshold, but the current best real HYIP - FXIG pays an average of 21% monthly, which is up to 0.67% daily. Most of the HYIP's have fixed returns - if a program is a real trading program its returns should depend on the trading results and therefore can't be fixed, but should vary.
  
• Reasonable referral comissions
  Real HYIP don't need any referrel program to attract members, people will see that the program pays and they will join. Nevertheless some of the best programs still pay referral fees of up to 5%-7%, for example the FeederFund is paying two level referral comission: 7% first level and 3% second level, but in this case the comissions are paid from the 25% that FF takes from all the earnings every month.
  
• Professional and unique site design
  All serious traders running real HYIP's use unique scripts/sites built solely for their programs. While most of ponzi HYIP's use one of few well known premade scripts, which can be purchased for very cheap, this will allow you to recognize most of them, as soon as you learn to distinguish the known HYIP scripts.
  
• Good payout history
  It's also obvious that the program which is known for a long time is more reliable than a recently openned one. The easiest way to check the program's history is by using alexa traffic rank and whois information. Checking the HYIP's payout history is also vital. The regular threshold is near 1 year, because PONZI programs even with low returns usually can't last that much. Real HYIP is always built for long term investments and therefore can break the 1 year record easily.
  
• Professional technical support
  Real program owners will usually try to answer on your emails as fast as possible. Real HYIP should also have a phone number and a fax, you may verify these numbers as a part of your HYIP investigation. Professional replies give much credit to the HYIP owners. You may be impressed by how respectfully the email is written. Real HYIP's don't send much emails, maximum few emails every month, or up to 1-2 in a week. If you are receiving any emails from the admin promoting some of his referral urls - stay away from this program, he is just trying to use you and is sending you spam.
  
• Disclosed information about the owners
  If a HYIP owner calls himself "admin", he is unlikely to be a professional investor, serious HYIP owners usually disclosure their private information, like name and location, you may also verify their phone and fax numbers.

While by these simple principles you may easily find lots of ponzi programs, they are not enough to reveal serious scammers and should only be used as a reference, not a guide or an algorithm to verify the HYIP. However, the more information you know and the more HYIP related articles you read, the easier it will be for you to find those ponzi programs and to stick to real HYIP's. Try to define your own measures for a real HYIP. Always apply your own HYIP investigation, before considering a significant investment.

Real HYIP Example

The current best high yield investment program, which is considered to be a real HYIP is FXIG. This and some other programs are associated with The FeederFund and you may invest in them either directly or through the FeederFund.

Other good HYIP's are FastMarket and Paxmix. They are not proven to be real HYIP's and may turn out to be ponzi's, but have good payout statistics, unique site design and reasonably daily returns and referral comissions.

Go Next To
=>HYIP Strategy
=> HYIP Investigation

Real HYIP
• Real HYIP Investment
• Real HYIP Properties
• Real HYIP Example

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