HYIP is a high-yield investment program that promises the investor for an unsustainable high return on investment by paying the money of the new investors to the previous investors. But there is the whole life cycle of HYIP, which we will look here. You can find such programs in HYIP monitor website.
The HYIP program and few others are going through several stages which are given as below,
- Initial phase:
During the initial stage, the administrator of HYIP lose money due to zero avenue. During this phase, there is lots of investment. In case the admin done everything legally, then some additional cost is needed for complete the entire process like registering the company, purchasing a domain, creating a site, paying money to be listed on the monitoring site, installing the security system of the site, advertising the site and forums, etc.
- Expansion stage:
Expansion stage is the actual beginning of the HYIP program. During this time, the first investor appears there appear the first investors, and they can also recommend the HYIP to others. Gradually, the program goes into profit. It is a significant step to determine the life cycle of the programme.
Be careful during this phase as it is possible that HYIP administrator uses a free domain, web hosting, copied scripts or cheap standard scripts.
With the help of advertisement, they can place the ads on various websites, or cheap sites, that means he doesn’t want to invest anywhere, so it is simple to disappear with the money of investors. Even this type of program does not run for a long time.
In such type of programme, the first investor has maximum chance to get the maximum benefit. If the HYIP gives offers and an affiliate program, then you can also earn the additional income provided you are free. At this phase, there is no problem with payment. So do not forget about the stage while investing money.
- Stabilization phase:
Now, during this phase, there is a steady inflow of investors into the program, and the HYIP gets to profit. Investors also get the decided interest. During this phase, there is neither payment problem nor decrease in advertisement cost. Yes, it is the right moment to join but for not long-term keep in mind. And if you have got a good profit, then this is the right moment to exit.
- Saturation phase:
Now it is the beginning of the ending. HYIP exhausted from the resources and the investor flow is also falling. Admin tries to attract new investor so the cost of ads increases. Second, the comment from investors decreases so admin have to use the programme for comments and third interest or percentage rate of partner payments rise. So it is time to get out of the programme. In some cases, only the HYIP can survive and finish the complete payment.
- Decline phase:
It is the last stage where it loses its enthusiasm and apple for the investor. As there is no inflow, there is no outflow to pay interest to the investors. So the admin disappears merely with the left out money. And by this way, the HYIP become a scam. If you have not to get out the money before decline stage, then there is no chase to get your deposit back.