Articles

Did you know HYIP is illegal?

by Andy Anderson Owner Yuma Bloggers
HYIP or Hi Yield Investment Pool is a Ponzi Scam in every sense.

It's cash for cash with little to no value for a product, packaged as a unregistered investment, and it pays massive impossible to maintain commissions by using the payments of new members disbursed to old members and counting on getting more new members each day than you have payouts due.

Fact is just doing the math a company offering 2% daily would pay out over 7 times their cash flow in the course of one year. Just 1 year on $100 they would have to raise $730 just to pay you and that's before making a profit etc.. Try to tell me math that bad isn't for sucking in suckers to a scam.

They fail when everyone starts reaching the last cycle and decides they want to get paid instead of starting new cycles. Add in the fall off effect when they run out of victims and even elaborate scams like JSS Tripler and Zeek Rewards will fold and claim thousands of victims. Many of these victims think they are making money or get excited over what their small money did early on and sink entire savings accounts into these scams.

To be legal a business opportunity must have a product of value and be sales focused ie.. buy this product not spend money earn money as the sales pitch. The value has to be equal to or greater than price paid. Most MLM companies fail the test of time because they jack up the price for an elaborate pay plan and thus violate the law. It must have a sustainable business model, one that pays all bills out of profits and does not depend on constantly gaining new customers to survive.

Staying scam free is not hard to do if you hold each business accountable to these rules, but for those who like a little help in weeding out scams join us free at Kooiii and become a part of StaySafe and Internet Scams Anonymous.

Andy Zeus Anderson
Follow me on Kooiii.com

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About Andy Anderson Professional     Owner Yuma Bloggers

966 connections, 14 recommendations, 2,722 honor points.
Joined APSense since, October 19th, 2007, From Yuma, United States.

Created on Dec 31st 1969 18:00. Viewed 0 times.

Comments

Buy Great Products Professional   Affiliate Marketer
HYIP is illegal and believe me you will never make money using them.
Aug 20th 2012 19:04   
Roosevelt Evans III Professional   Home Business Entrepreneur
Timely article, Andy. Thanks for sharing!
Aug 20th 2012 19:21   
Dr Don Yates Sr PhD Magnate II Deluxe   Entrepreneur, Mentor, Advisor, CEO
thanks for the great read Andy
Aug 20th 2012 19:23   
Velli M. Senior   Blog Developer, Publisher, Affiliate
to be honest, I really hate HYIP
and nearly 90% of online investment is a HYIP
Aug 21st 2012 22:12   
Andy Anderson Professional   Owner Yuma Bloggers
Velli you touched on something there. Many don't realize that even these so called Forex sites are mostly HYIP attaching the name of a legitimate business. If the site doesn't carry the name and license number of a verified securities broker the chances are you are joining a scam site, regardless even if the program is legit they are still breaking the law not having that information displayed at the point of sale.
Aug 22nd 2012 11:44   
Vijaya Lakshmi Committed   Writer, Health Consultant
Andy, very good article. This article throws light on certain hidden things by the HYIP sites and also in many review sites. Everyone just want to see they are paying. Most people failed to see how they are paying. If they just understand it, chances of having more scam sites would be reduced.
Aug 26th 2012 21:13   
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