For today's article I want to talk about some of the tricks used by admins trying to revive failing programs, and also to try and squeeze the last few extra pennies from their members. I'll also discuss the signs which members should pay close attention to when a program looks to be in trouble.
I had given a lot of thought to this article during a time when several programs for one reason or another collapsed. You may wonder if itís normal to have a lot of closures so close to each other, and Iíd have to say yes, itís perfectly normal as the HYIP industry tends to work in cycles. A period of growth when many new programs are formed and attract a lot of new members is followed by a period of decline accompanied by a so-called ďdomino effectĒ when sometimes the collapse of a few big programs creates a wave of other closures when investors panic and start withdrawing from what were otherwise paying programs as well. Again, this is perfectly normal and is eventually followed by a period of stable growth once more. This is how the industry works and investors can either get used to it or leave if they donít it. But for me personally the HYIP industry is like a microcosm of the real offline economy where boom and recession follow each other as surely as night follows day. It just happens a little faster here, thatís all.
The main difference between the HYIP industry and the real economy is that the risk is multiplied greatly. There are absolutely no guarantees for your deposit once you make an investment in any HYIP and itís better not to even think of the money as yours while it circulates in the HYIP industry. From that time on youíre at the mercy of the admin who is in total control of your money until itís returned back to you.
Obviously many quality HYIP admins are interested in running programs for as long as possible, because that will give them more profits with time and the trust of the investors can grow significantly, some of whom will happily forget about the degree of caution which should always be applied. So what are they doing when they see their programs are going to collapse but are not ready to come off the HYIP stage yet?
Offering investment bonuses. This is definitely one of the most controversial points as not all bonus offers precede a collapse and an experienced investor should see the difference and adjust his strategy when the admin is up to something. One thing is when bonus is quite decent compared to the total increase in profit an average investor can get when participating in this offer and is aimed at simple promotional goal. Itís a totally different matter when the bonus is outrageously high and is definitely aimed at gathering money from naÔve investors before disappearing. For instance a program paying 1% for 150 business days offering a 5% bonus is much more reasonable than the same offer from a program paying 105% after 1 day. I hope you get my point here and will pay close attention to this from now on.
Of course one red flag which can signal some cashflow issues is a radical change of investment plans. In the process of running a program the admin can realize that with the current plans his program will not become popular and he will never achieve the results he was hoping for when starting. In this case the addition of new plans can genuinely give the program a boost if it really has been taken as far as itís going to go in its existing format. At the same time, if the program in question is already big enough and is advertised on the big monitors and forums the addition of new, usually lucrative plans can herald a pending collapse. For instance, when a program offering 105% after 1 day suddenly launches a 200% after 1 day plan itís just plain obvious that the program will be dead within day at most. So be aware of this and ask yourself whatís the purpose of adding a new plan? If the things are really going well why does the admin need to change anything? If this new plan is so good why wasnít it implemented from the very start?
Selective payouts is perhaps the biggest single warning sign about any program. Please note that HG is the most strict monitor when it comes to selective payouts as I believe that a program has to pay all investors without exception. If even one non-payment is confirmed by me and the admin doesnít explain properly why this happened the program immediately goes to Problem status. Investors shouldnít ignore any such reports even coming from other monitors, however I cannot guarantee that such statuses are as accurate as those displayed on HG. Note that the troubles any program can get into start with selective payouts and especially you should be careful when small payouts are reported while some bigger investors and non-monitors are getting nothing. In any event selective payouts canít be justified and unless they are proved wrong and are properly verified by independent parties such programs cannot be trusted and should be avoided completely.
Sudden drop in advertising on popular websites. This can be a very conspicuous sign indicating a program has some cashflow issues and may to collapse soon. While in rare cases it actually means that the admin is getting more economical with the purse strings preferring a more low-key promotion, it may reduce the number of investors visiting the site due to the advertising or indeed indicate that the admin is cutting corners because heís struggling to come up with enough money to pay his members. So, if you see that a program curtails its advertising campaign you need to think why the admin did this and if the cashflow is really so healthy. Usually the admins donít waste money on advertising if they are about to close their program and donít really care about maintaining the same level of exposure.
Of course there are many more such tricks to keep the program alive for longer which often remain unnoticed as the investors become smarter day after day using all the necessary information and daily analysis of ongoing events provided to them absolutely free of charge by quality informative industry news sources. Please note that only by careful consideration and analysis of the current events in the HYIP industry will you become a successful investor. I believe HG can make some contribution to that, and Iím happy to share my experience with you for a long time, guys, which Iím pretty proud of. I believe that during the last few years HG deserves the reputation of a reliable source of information, and though I can make some mistakes just like anyone else I believe I learn from them.