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