How to evaluate and select the project?
Just like in any other business, investing needs experience and a good nose. Believe me, both of them show up rather quickly.
Before investing money in a project interesting for you, it’s indispensable to analyze the following:
1. Return on Investment (ROI).
2. Partnership interests.
3. Impression of the program’s web site.
4. Contact information.
5. Reviews and comments on dedicated forums.
6. Life span.
Return on Investment (ROI)
First of all, it’s indispensable to evaluate your regular return, i.e. the percent on investment to be paid to you by the site’s administrators.
The main thing here is not to be easily imposed upon by glittering promises. If you’re offered as high as 30% per day, be sure – your are being cheated. An average ROI for serious HYIPs is up to 1-1,7% in terms of one calendar day, or 15-50% per month.
The ROI allows foreseeing how long a HYIP can get along under favorable conditions. Usually the HYIPs are divided into four categories:
• high-yield projects;
• average-yield projects;
• low-yield projects;
• “floating” rate projects.
High-yield ones are those whose return exceeds 60% per month. Under this category we usually can find projects offering short-term deposits of several days. Investing in such projects is fraught with high risks.
When choosing a project, one should put an emphasis on those projects, which extensively advertise themselves on forums, monitors, theme-based blogs. A lot of advertising – a lot of investors. That means that even if the project is just an ordinary Ponzi scheme, it can live long enough to let people earn good money with it.
The average-yield category includes projects with monthly ROI of 15-50%. It is the so-called “golden mean”, as with a profitability high enough their average life span is much longer than that of the high-yield ones. It is better to start investing in them after 1-2 months of their work. This would reduce your risk to fall across a scam only collecting the first investors’ money. If you see that the project is actively discussed and extensively advertised, it is possible to reinvest several times.
Low-yield projects pay up to 15% per month. Such projects are defined by a long-term work. But the deposit terms may reach 6-12 months as well. Investing in them is reasonable after several months of their presence.
“Floating” rates are offered by projects dealing with stock markets and Forex. The profit is calculated on the basis of the project’s own income. On one hand it reduces your risks, as the project provides reports and you can see how much it earns. On the other hand, your percent may be negative if the project loses due to his trading activity. Investing in such projects is comparable to entrusting funds to a trader, playing on stock markets.
Low-yield and “floating” rate projects have one more disadvantage. The HYIP investors are focused on higher profits, hence the projects with modest efficiency may simply fail to invite investments and will shut down soon.
Partnership interests
Too high partnership interests (refferal payments) should put you on your guard. Serious HYIPs are always open to collaboration, however their main goal is making profits due to an effective investment activity. Hence, if you are offered more than 10% on funds attracted by you, new customers are most probably used as the sole source of that project’s income.
The project’s website
The impression of the site is one of the most important evaluation criteria. Protection against hacking, private domain, functional and original design, effective and convenient feed-back means, of course, do not guarantee the honesty of the program’s administrators, however they point at their serious attitude toward the project, that a nice bit of money has been put in, and consequently they will do anything for their project to make it live as long as possible.
A primitive site, illiterate texts or texts copied from other resources are an evident sign that you deal with scammers. They know that the program will be down soon, hence they don’t spend money on an original design and informational filling.
Exception – some sites of long-lived projects, created 2-3 years ago.
Contact information
The more the are possibilities of feed-back, the higher the credibility is. However, the HYIPs’ owners often try to remain anonymous. In the modern business conditions it looks quite normal and cannot be considered as a direct evidence of fraud.
Reviews and comments on forums
Explore the forums dedicated to HYIPs. They are visited by lots of experienced investors. It’s especially important for beginners, who have just started dealing with online investments. Thanks to the communication on forums, one may reveal eventual disadvantages of the HYIPs interesting for him, learn an opinion of other people already taking part in the given projects. The HYIP forums are the source of the most updated and impartial information.
But it must be borne in mind that among the forums’ participants there are people who consciously spread injurious information about one or another project.
Analyzing the information provided by the HYIP monitors, you may learn whether or not the program in question is paying at the moment, how long it exists. But that data is less worth than that provided on forums, because there is no guarantee that the project which is paying properly today will be doing so tomorrow. Moreover, it happens quite often that the project pays the monitors, but doesn’t pay ordinary investors.
