HYIP SCAM?I have to say this now or more people will fall prey to these monsters(Fake HYIP).Most are fakes, however there are a few legitimate programs out there. I would look at them as a gamble instead of investment. .The rule of money has never changed and it would never change.The rule of money is universal:Sow and reap!
In the bible, God told Adam that he would have to work before he could eat– NO MORE GARDEN OF EDEN(Freebies)!
What does this mean? It means that any investment venture that seem like its so easy to make money should never be trusted. Any investment system that does not require you to work is “a scam in most cases.”
The problem with most people today is that they want to eat without working and this does not happen without getting hurt.It does not mean that people don’t make money online but you have to work hard.This is the price we have to pay to get any meaningful return in investments.
Is Networking Legit?
Scammer MLM and HYIP have been in existence(since HYIP schemes have been introduced) in many countries of the world. Network Marketing is one of the best business models but has been abused by clever scammers who use it to defraud people.
There are at least 5 ways to easily detect any HYIP scam, no matter how authentic or real they might look:
Note:The key to success in MLM is the ability to know the right company i.e. the legitimate, rewarding ones to do business with, not doing It because others think they pay good commissions
1.)Recruits Persons instead of Products:A MLM company that is focused on the recruitment of persons into the network and pays a recruiter a commission for recruiting others into the network, cannot be a legitimate HYIP business. Many of the MLM businesses that have crashed in the world belong to this group.These schemes are designed to benefit only 5% out of 100% of the investors and eventually crash with the rest 95% frustrated. They have a product which cannot sell well in the country of operation and tell you that the way to make any money and move up in their network is by recruiting people and getting rewarded for that.Beware!Do not fall for this trick!
2.)Pays Comission for recruiting others:The MLM business to sign up with is that which focuses on the sales of its products, and recruits sales persons but does not pay any commissions or reward to anyone for recruiting others. It pays commissions based on products sold, not for persons recruited.
Note:These organizations usually have product that that sells easily.
3.)Promises fixed returns:Any HYIP that promises consistent fixed returns throughout the life of the investment is a Scam because the promise of consistent fixed returns is a bait to lure in an undecided potential investor into their scheme. The returns are paid from capitals collected from earlier investors.
Note: in the real world of finance, there is no such thing as consistent fixed returns in the market. Interest rates always fluctuate in the financial market.When the promoters have collected enough money, they vanish or when they are unable to pay newer investors the promised returns, the scheme collapses under its own weight(Most HYIPs do not invest in anything.)
4)Too Young or too new with motto”we are the best;invest now and never go broke”:Invest only in Companies that are 3-5 years:if the company is at least 3-5 years old then it has passed the point where 98% of companies fail and it has probably solved its initial growing pains! Remember, 98% of ALL new, grounfloor companies FAIL in their first 2-3 years, regardless of how great they claim their products are, how lucrative their compensation plan appears to be on paper, and/or who owns the company and how much money and experience they have!
This is why you should NEVER get involved with a brand new groundfloor MLM opportunity! You are hoping it beats the odds, and whenever you try to beat such huge odds (98 to 1 against you), you’re virtually guaranteed to fail, unless you get lucky! You’re not that smart or lucky to be able to guess the 1 or 2 new companies out of a 100 that is going to still be in business 3 years later! If you’re going to gamble on your future, you can get better odds than that in a casino, not to mention the fact you’ll have a lot more fun losing your money!
In addition, if they are 3-5 years old, they are old enough that they have not only passed the point where 98% of companies fail and have worked out any initial growing pains, but they are young enough that there is still a legitimate, groundfloor opportunity with them and you could rise through the ranks and stand out as a top leader. (You could get involved with a company that has been 10-15-20-30 years or more, and you’d never have to worry about not getting paid with that company, but chances are even if you succeeded you’d never stand out as you’d be just one of hundreds to thousands of leaders in that company because they’ve been around so long
5)There are many other ways and methods to spot scam MLM and HYIP businesses operating in the world.Many of them come cleverly disguised as legitimate but are real scam organization .Having knowledge of the various ways to detect them is essential to avoid falling into the wrong hands.Having a discerning knowledge of the various ways to detect them is essential to avoid falling into the wrong hands.