Every HYIP like a manufactured product, has its stage of development and its life cycle. In order to minimise our invest risk, any potential investor should learn to identify what is the current stage of the HYIP life cycle. This is important as the stage of HYIP life cycle will most likely determines whether a invester would receive a promised profit. The different stages of the HYIP life cycle are:
Starting-up. At this point, the administrator of HYIP administrator will loses his/her money because he/she does not have any revenue yet. During this phase, a lot of money will be pumped into the program: that is if everything is done rightfully and legally. Costs are needed for registering the company or a legal entity of a country, from the purchase of a domain name and hosting, creating the site, implementing the various security measures on the site (DDoS, Https, SSL, dedicated server), to paying money to be listed on the monitoring site, advertising on the monitoring site and forums, etc. All these add up to a consider amount of money upfront.
Growing Phase. Iis the beginning of any HYIP program. At this stage, there will be the first investors, and they will gradually recommend the HYIP to others with the power of referal commission. Gradually, the program rolls into profit. This is a very important pharsr that will determine the rest of the HYIP program life cycle.
Things to watch-out before investing for this pharse, if you can see that the administrator uses a free domain name and web hosting or some cheap standard scripts and unlicenced scripts. Not forgetting when there is very little advertising done, and the site is placed only on a couple of monitoring sites or only on unknown monitor sites. This show signs that the HYIP administrator invest much and is not genuine, his/her intention is to simply hit and run as soon as possible with all the investors’ money. All these factors are give-away that such programs will not exist for a long time.
However, if you do spot any HYIP administrator has put neither effort nor money into their project at early stage, it means that this is the best time to enter program if you want to make a quick bucks and willing to risk the money. It’s no secret that the first batch of investors will have the best chance to get back their investments with interest if they come out on time. Usually the interest is quite high.
Do analyze carefully on the HYIP administative and marketing work at this stage. If the administrator of the program is willing to invests more in advertising or having additional security on the site, it give us greater confidence of the HYIP stability.
If that is the case, there should not be any problems with payments at this stage. Therefore, by studying in detail from forums and monitoring sites will give us a general idea of the stability of a particular HYIP. Please bear this in mind.
Stabilization Stage. In this pharse, as there is already constant inflow of investors into the HYIP program, it becomes profitable. Investors regularly get their interest. There will be no decrease of advertising costs any any payments problems.
In our experience, this is the best moment to join, given if investment plan is not designed for too long.
On the other hand, this is also a good time to exit if you have already had a good profit for yourself and wish to keep your investments or to invest in other HYIPs.
Saturating Stage. Generally, this is beginning of the downfall period of the HYIP program! The decrease in the flow of investors and the HYIP has exhausted much of its resources in running cost and interest payout, especially if the program does not have a sustainable physical business to earn externally. How do we identified this stage?
First of all, the administration can be seen to make desperate attempts to attract new blood to the program, therefore, costs on advertising will increase. Next, there will be new contract with promised higher interest payments to partners or higher percentage rate for payments. Lastly, there are fewer investors comments, comments mostly comes from HYIP program administrators. All these are tell-tale signs of the saturation stage.
Important Note: Undoubtedly, this is your final chance to get out of the program. In case of a time bomb or “pyramidal” HYIP, you will have just a few days before the program roll into the decline stage and then disappears forever.
For some case, but rarely, the HYIP is able to survive this stage and pay off all its investors in full. In this case, it will be a measure of the seriousness and reliability of the HYIP administrator. You must conduct careful analysis before you decide whether to whelther to invest further in the program.
Declining phase. No doubt that this is the final stage of the HYIP life cycle. The program at this phase loses its appeal and enthusiasm of investors, that is to say the HYIP stops its development. Since there are no more new inflow of investors, so there will be no available funds for interest payments to existing investors. The HYIP administrator will then disappears together with the remaining cash available.
When that happened, the HYIP program becomes a scam. If you are still in the program at this point, you are most likely unable to get back your deposit. This is why it is important to define a particular phase of the HYIP program development as clearly as possible. and alert us of any potential scams. Any miscalculation can lead to our capital loss.
Thank you for reading.