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What Is High Yield Investment Programs About?

While the internet is awash with a wide variety of investment programs, not every one of them is legit, some ‘glitter’ but are definitely not ‘gold’.

In this brief post, I will shed some light on What is high yield investment programs about.

Kindly stick and stay with me in the section that follows:

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What Is High Yield Investment Programs?

Here is what high-yield investment programs really is:

High-yield investment programs (HYIPs) are unregistered and unlicensed online investment schemes that typically promise ridiculous returns on investment at supposedly negligible risk to investors.

They are in essence Ponzi schemes.

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ZeekRewards Is One Example

Here is one example:

ZeekRewards is one of several schemes of this kind and in August 2012, SEC shut it down.

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How Do High Yield Investment Programs Work?

Here is how they work:

Generally, HYIPs often promise returns of as much as 50% or more in order to attract unsuspecting investors.

HYIPs claim to direct funds received from investors towards investment in varied markets. Investors are then supposedly entitled to a part of the return on their investments over the course of a specified period.

In reality however, what happens is that older investors are paid with funds received from new investors.

Because at the end of it all, passion does not create money: money creates passion.

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Do High Yield Investment Programs Really Pay?

Not really:

Some HYIPs simply do not pay at all.

However, a significant number of HYIPs pay supposed interest on investment but only for a brief period.

These initial payments tend to motivate investors to continue their investments while recommending such investments to other persons.

Over time, HYIPs halt payments permanently, when it becomes abundantly clear to them that they have succeeded in luring a sizable number of people into parting away with significant amounts of money.

They in effect defraud their investors.

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