Hello my friends,
What is Hype? You know I read alot and see alot of people doing and offering programs to others based on Hype?? It really saddens me to see this.
You know even alot of top networkers with famous names have Hype programs.
Just because you think he or she is famous doesnt make it set in stone.Thats how they get us to buy there product,Just because a program is famous does not mean its for everyone.
Things are made to look or appear simple but its not, You can not do the same as they do.
If you want to succeed it is called "WORK" you have to do it your self.
These programs make it seem like you do not have to do any work but they will take all your money away from your family and harm you because they have the illusion of a quick buck hype.
Folks there is no program on this earth that will ever get you an income with out you having to work at what you are doing. even if they claim it on there sites. Everyone has to advertise there business in order for you to succeed.
Unless you pay someone else to advertise you there is no program on earth today that is going to do the work for you, so do not ever think for one moment that there is anything no matter how good it sounds will ever produce income for you ,you have to work.
This is just food for thought and a reminder not to get caught up in the HYPE of things.
This is your ANGELS looking after you all.
Aaron and Kathy
This article has been tagged since January 2007.
A High Yield Investment Program, or HYIP, is a type of investment scheme normally offered via the Internet. HYIPs typically accept deposits as low as $10 while promising astoundingly high returns.
Online HYIP schemes rarely last for the long term. Overwhelming number of cases suggest that HYIPs are Ponzi schemes,
in which new investors (usually unwittingly) provide the cash to pay a
profit to existing investors, which they typically then withdraw. This
approach allows the scam to continue as long as new investors are found
and/or old investors leave their money in the scheme, known as
compounding (because even higher profits are promised).
The introduction of e-currencies
has made it possible for HYIPs to operate on the internet and cross
international boundaries, and to accept large numbers of small
investments. HYIPs usually accept deposits by either e-currency, like e-gold, e-bullion and INTGold, or use specialist third party payment processors like AlertPay, SolidTrustPay, CEPTrust, TriStarMoneyChangers and StormPay.
HYIPs typically offer a significant incentive commission (for example,
9% of invested funds) for members to attract and refer new investors.
Most HYIPs disclose little or no detail about the underlying
management, location, or other aspects of how money is to be invested,
and relatively little information (other than asserting that they do
various types of trading on various stock and other exchanges) on how
they actually generate the returns they purport. They are sometimes
presented with some form of an emotional appeal, appeals for faith, and
promises that they will help investors achieve financial freedom.
Arguably, the largest HYIP scam that has existed on the internet was PIPS (People in Profit System or Pure Investors)[1][2]. The investment scheme was started by Bryan Marsden in early 2004, (according to the Wayback Machine record of http://pureinvestor.com) and spanned more than 20 countries. PIPS was investigated by Bank Negara Malaysia
in 2005 which resulted in Marsden and his wife being charged in a
Malaysian court with 97 counts of money laundering involving more than RM77 million - US$20 million - (copy of New Straits Times article dated 11 Oct 2006).
[edit] Interest rates
HYIPs typically claim to offer interest rates of 1% or more per day
on invested funds; some claim to offer much higher daily rates
exceeding 200% a day. Allegedly, the highest-return HYIP on record has
offered 1,100% ROI in one day. Claims of astronomical returns without
large capital outlay or background information are indicative of a
Ponzi-structured HYIP program.
As a comparison with a typical 1% per day claim, Warren Buffett,
one of the world's most successful investors, made around 30% per year
during his most successful period; that is on average, less than 0.1%
per day. As the claimed returns of 1% per day are extremely unlikely to
be produced legitimately, all HYIPs are therefore likely to be Ponzi schemes, and so most investors will in due course lose their money.
[edit] HYIP investors
There are basically 3 types of people willing to put their money in an HYIP investment.
(1) The Unwaries - This group forms the majority of HYIP investors.
They are often either inexperienced with investing or insufficiently
informed about the risk of the HYIP. The most common reason for them to
join an HYIP is to have a source of income that their lives depend on.
They are open minded and interested in improving their own financial
situation, but are oblivious to what is really going on. They are often
referred to an HYIP by group (3) below.
(2) The Gamblers - HYIP investors in this group have some experience
with HYIPs and they show signs of being overcome by greed. Similar to
gambling addiction, the thought of profiting from hyip gives them a
thrill and motivates them to invest their money.
(3) The Cheerleaders - Contrary to group (1), investors in this
group have a clear understanding of how hyip works. They seek to earn
and maximize profits in HYIPs by exploiting the majority group (1).
They are often active participants in areas where their HYIPs are
promoted.
[edit] HYIP games
As a result of online forums and monitoring sites which have made
HYIP investors more aware of their nature, a different sort of "honest"
HYIP began springing up in the early months of 2006. Basically, the
HYIP owner calls his or her program a "ponzi-structured game" where one
should "not invest money one cannot afford to lose", and where there is
"never a guarantee of earnings or refunds". They promise to pay out up
to (for example) 95% of deposits, the rest going to hosting or other
fees and the owner's profit.
In such "games", the first participants ("investors") may make a
good profit and are encouraged to refer other people to the program
because of referral commission, the fact that they have already made
back their principal and are playing with profit, and that the more
people who deposit money, the more money can be paid out to
participants. In theory, strategies can be developed to maximize profit
using these games (but, of course, since this is a zero-sum game,
such strategies work by taking advantage of ignorance or errors by
others). Some forum users may gain a reputation whereby others will
trust their word that they have been able to withdraw their profits,
encouraging others to invest in the hopes that more will invest after
them and that they can therefore make a profit. As these games are by
definition Ponzi schemes, it is inevitable that the vast majority of investors who are not at the top of the pyramid will lose their money.
These "games" might be considered as lotteries.
However, the odds of winning cannot be determined, as one cannot know
whether one is playing early enough to win money (that is, whether a
sufficient number of new participants will follow). Thus, these
activities are unlike a lottery or other forms of gambling, where a
player has an equal chance of winning no matter when a ticket is
bought, or where the odds of the game are known.
[edit] HYIP monitors
HYIP monitors, or HYIP listing/rating sites, are websites that list
and/or promote HYIPs for referral commissions. The monitor charges each
HYIP a listing fee which is usually then invested into that program,
although there exist free listings and occasionally monitors which
invest their own money. The monitor then labels the HYIP as "Paying" or
"Not paying/Scam" depending on whether interest is received within the
terms specified by the program. Monitors also allow other HYIP
investors to rate and comment on the programs, based on factors such as
promptness of payouts and responsiveness of the HYIP administrator.
Programs with higher ratings achieve higher rankings on the monitor
sites, which coupled with a "Paying" status may entice more investors
who rely on the monitor.
Sometimes HYIPs only pay monitor sites to keep their "Paying" status
visible, but do not pay other investors. As HYIP monitors are not
affiliated with the HYIPs themselves, they are unable to prevent
investors from being scammed; they neither help to recover lost funds
nor track down the scammers. Promoting or perpetuating Ponzi schemes is
a criminal offense punishable by jail terms or fines in most countries.
That the monitor sites place disclaimers saying that they "do not
promote the programs advertised on their website" does not absolve them
from criminal liability.
In order to generate a "Paying" status early (so that future
visitors will see it) and maintain it for the longest possible time,
newly opened HYIPs must list their site quickly as well as constantly
pay monitors their interest on time. Added to the fact that many
monitors just invest the listing "fee", and that a commission is
received on each deposit made by people who visit the HYIP via the
monitor, they are the most likely to profit when a program runs out of
funds. Hence, normal investors are always the losers.
HYIP owners can manipulate monitors and forums, by paying people to comment positively or by using a range of IP addresses or proxy servers
in different locations so that "paying" votes appear to come from
around the world. This allows the HYIP to rise up the rankings more
quickly than others, giving investors a false sense of security.
Additionally, even if they know it will scam in the future, most
investors will also rate new HYIPs positively until the HYIP stops
paying, because they want more people to invest after them in the hopes
that the program will last longer. Future scammers can also build up a
good reputation on forums for a large payoff once most forum members
trust them.
Some HYIP monitors also have discussion forums that facilitate
recruitment of new investors into HYIPs currently being promoted. These
often contain many posts by cheerleaders or shills, who share a belief
that HYIPs are good money-making opportunities as long as they pay.
[edit] HYIPs indicted or under investigation
The following is a list of HYIP scams that are currently under
investigation or have been successfully indicted in a court of law.