InfamousG
Member
Cash: $ 3.55
Posts: 15
Joined: 16 Sep 2005
Location: Berkley, MI
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| HYIP Questions |
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Could someone who does not want to try and get me to sign up with their referral link please explain to me how HYIP's are able to operate and how that they are really profitable?
12 Daily Pro for example...
They claim 12% daily... that's an APY of over 3000%. How in the world can they offer that kind of rate of return?
A $100 investment would turn into over $300,000 in one year.
This seems absolutely insane and impracticable for any business to even jokingly offer.
Or are they saying: 12% APR compounded daily? That certainly seems more reasonable and would be 0.03% per day.
Also, what about this eGold stuff?
Every website I see that has to do with eGold and making money with it seems crudely put together in Microsoft Frontpage. If there is so much money to be had with this, why can't they hire a decent web designer? Same with StormPay.
I keep seeing all sorts of people bleating out how amazing the program is and that you "double your money every other month" and what not... yet I've never heard about this on any news program, financial advice professional, or any publically availible book. The only place I ever see it is on forums.
I work for 2 CFP's and I have never heard of them even considering something like this. No matter how good it could be for our clients (and in turn, to us).
So why is it that the only people "privy" to the "wonders" of these HYIP are interenet forums and people with bad grammar? I don't see why some real estate tycoon who could easily use $10,000 to light cigars with wouldn't put it into one of these HYIP's and then turn it into millions.
So please, if someone could explain to me how these operate, I would very much so appreciate it.
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Sat Sep 17, 2005 3:09 pm |
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Lithix
Full Member
Cash: $ 11.65
Posts: 50
Joined: 17 Sep 2005
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As far as I can tell, these are short term endeavors at best. (Yes, I link to 12dp in my sig, but only because I am currently being paid by them every 19 days or so).
The way 12dp works is that you pay x dollars for an "upgrade" that allows you to earn a certain amount of money for each day you use their autosurf software to view 12+ sites. These are purchased in $6 increments up to a max of $6k.
So, say you bought 100 upgrades for a total of $600. This upgrade is "active" for 12 days. Each day you surf your 12dp account is creditted with 12% of your initial deposit - so each day you surf you get $72. Assuming you are able and you remember, your account will be creditted for $864 at the end of the 12 days - THEN there's an additional delay for the automatic withdrawl to your e-gold account that can take up to 7 BUSINESS days, which equates to up an additional 9-11 days (because of weekends) depending on when you purchased your upgrade.
So, in total you end up making 44% interest over about 22 days. So you won't be compounding your initial deposit every 12 days, unless you portion your principle into smaller shares. Anyway, this ends up being about a 2% total profit per day on your money that they need to come up with to continue paying everyone.
As best as I can tell, they make this 2% per day up through a variety of means. First, as they promote on their website, is by selling advertising to promoters. The more users and higher ranked their site becomes, the easier this is - but in reality, auto surf hits go at a low rate. So, to make up for the rest of the required profit, they invest user funds into programs - often doing things like FOREX trading. Additionally, sites that continue to run for the long term often create sister sites in their network that profit off of the already established user base. For example, StudioTraffic has been around for about 2-3 years and they are still paying. They have opened their own payment processor (which takes a service charge from payouts AND adds to the payout delay) and a webhosting company and have plans for several other major projects. 12dp has announced a secondary site starting October 1st, but they have not said what it will be.
So, factored in with the amount of people that aren't able to surf the entire 12 days for whatever personal reason (internet outage, work, family) not everyone makes the whole 44% - each day they miss drops it by 12%. So even 2 days missed cuts the profit by 50%.
Unless they are just extremely savvy, these companies inevitably fail in the long run - so you should probably not view any as a long term investment, but rather as a short term risk with high potential profits. As I said earlier, I promote 12dp - not as a long term company, but as an opportunity that is currently paying on an extremely consistent basis, and should be for at least another 3-4 months.
Hope this helped, if you have any other questions just let me know and I'll answer to the best of my ability.
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Sat Sep 17, 2005 6:08 pm |
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lazaraus
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 17 Sep 2005
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InfamousG,almost all HYIPS are scams.You'll probably end up losing most of your money,as i did.Now i only invest through the FeederFund;they do all the due diligence for you.Now i can sleep soundly at nights.
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Sat Sep 17, 2005 7:08 pm |
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Andrew
Admin
Cash: $ 467.10
Posts: 1717
Joined: 02 Nov 2003
Location: Texas
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>> How in the world can they offer that kind of rate of return?
Simple, they can't. Virtually all are scams...
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Sun Sep 18, 2005 12:46 am |
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moregold
Contributing Member
Cash: $ 3.65
Posts: 25
Joined: 13 Sep 2004
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99.99% of HYIPs are scams.
For an interesting interview with a HYIP admin you should read this:
http://hyipfarm.com/invexscam.htm
moregold
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Thu Sep 22, 2005 9:41 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Ahhh! You have to surf to get your money back, then the 12% BS.
So how many hours do you have to surf?
How long do you think it will be before the advertisers are privy to the scam and back out?
"Expect me when you see me."
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Fri Sep 23, 2005 7:06 pm |
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Lithix
Full Member
Cash: $ 11.65
Posts: 50
Joined: 17 Sep 2005
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You don't have to spend hours surfing... you spend less than 10 minutes a day (unless you have a dial up connection, I suppose). As for advertisers pulling out... I don't know what to say about that, because I have no clue who the genuine paying advertisers might be. As far as I can tell, there is virtually no revenue being created via advertising... though their alexa rating is around 1300 now, so I would assume *someone* would want to advertise on their site. I assume they are just using the deposited funds to invest in other programs - but I have no idea what those might be.
/figures its probably some kind of elaborate scam, but is consistently profitting off of it for the moment.
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Fri Sep 23, 2005 7:12 pm |
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fultron
Preferred Member
Cash: $ 3.50
Posts: 103
Joined: 15 Sep 2005
Location: NJ
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I don't know much about these programs, but as a rule of thumb if something sounds too good to be true, it usually is.
Saving Money
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Sun Sep 25, 2005 3:41 pm |
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Mhayer
New Member
Cash: $ 0.80
Posts: 3
Joined: 28 Sep 2005
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| try this one |
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before you join in any of this surf to earn program first thing you do is investigate like joining in the in the forum and if possible pm some if not all the forumers me i'm earning $300 a month and enough for my gasoline allowance,
http://www.studiotraffic.com/index.php?refid=21734&username=Mhayer
___________________________________________________
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Wed Sep 28, 2005 2:07 am |
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Doro Ajani
Full Member
Cash: $ 3.34
Posts: 60
Joined: 11 Sep 2004
Location: New York City
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| Re: HYIP Questions |
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InfamousG,
The majority of the online ponzi schemes, passing themselves off as "high yield investment programs" are obvious scams, catering to people's greed.
The people that run these programs count on the greed and desperation of the people coming into those forums.
If you're thinking clearly, you can just take a look at the stated interest rates, which are unsustainable. The example you gave of the program offering 12% daily, without any qualification, as if they could get that return on a daily, consistent basis, is so outrageous that some would conclude that "investors" in that program deserve to have their money parted from them.
There are legitimate programs that can generate 12% a month, under certain conditions.
As for the poor design of a lot of the websites, a number of the people running these scams figure that the people coming to their website, that would believe the insane interest rates, would also overlook spelling errors, or don't read/write/speak English very well.
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Thu Sep 29, 2005 7:50 am |
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alex318
Contributing Member
Cash: $ 0.40
Posts: 39
Joined: 07 Aug 2005
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99% of hyip are ponzi scheme.
The Ponzi scam is named after Charles Ponzi, a clerk in Boston, who first orchestrated such a scheme in 1919.
Although a Ponzi scheme is similar to a pyramid scheme in that both are based on new investors' funds to pay the earlier backers, they differ in that the Ponzi mastermind signs up new investors, who are used to attract potential investors, rather than the hierarchical pyramid setup whereby all the investors do the recruiting. Eventually, there isn't enough returns to go around and the schemes unravel.
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Sun Oct 02, 2005 1:01 am |
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