No Bullshit HYIP Blog, A Part of No Bullshit Network

HYIPs, including autosurfs, have to get money from somewhere in order to make payments. They can get it from inside the program or from external income sources. 99% of HYIPs use inside money, even though some claim to have an outside source(s) like Forex trading. There are a few that actually have an outside source of income.

Inside Income Source

These programs use new member’s money to pay old members (and maybe some money from sales of a service, like advertising.) They are referred to as ponzis, pyramid schemes, games, etc. Any way you describe it, they are illegal. Some come right out and tell you that they are a game, while others try to hide the fact with glitzy rewording, a service and/or skirting the issue. The worst are the ones that out right lie to you and tell you they are trading in Forex, doing import/exports or some other source, when they aren’t.

Even though these are illegal, they thrive on the internet. Why? Because you can make money from them. While the majority of people lose money, some make it. So people keep gambling on these programs. It’s actually the program owner that makes the most money. The referral hounds with huge downlines make the second most. People who have developed a strategy for getting in and out of the right programs at the right time also make money. It’s the rest of us that lose. Prosecuting administrators after they run hasn’t done anything to deter either gamers or administrators. The lure of the next big one is too strong.

2006 saw the demise of many of these programs in the wake of 12DailyPro. As a result HYIP gamers have gotten smarter. HYIP administrators have been forced to get more creative in their business models, allowing more people to win. In addition, administrators have to be prepared to endure scrutinizing by gamers, bloggers, monitors, etc. The smart administrators have come to the conclusion that it is best to just tell people that they are running a game.

You can win the HYIP game, but you have to develop a smart strategy for finding ones that should pay you before they close. Timing is everything. You also can’t get greedy and keep reinvesting 100% with the same program. You will lose it all. I’m sure you’ve heard it before, but “Get you initial deposit out ASAP!” and “Don’t bet the farm!” Remember that you are gambling that you’ll get paid all of your initial money plus a profit. So, make sure that you take out some of the profits along the way, if you keep playing the same program. Some prefer the hit and run method, where they go in once big and walk away when they are paid.

Outside Income Source

Outside Income Sources come from a variety of investments. The most common ones are Forex Trading (yes, some really do trade in Forex!), stocks (day trading style) vacation rentals, merchandise that can be flipped in online/offline auctions, real estate and gambling. The programs are rare and hard to find, because they discourage too much advertising. They prefer a slow, steady growth, rather than growth that soars and crashes.

Gambling with a program that has an outside income source (or preferably many sources) is safer than gambling with a pure HYIP game. They are more sustainable. However, they can and do fold just as easily as the game.

The returns are usually much lower than the games, too. Some of them protect you from periods when their outside source is negative, while others pass on the loss to the investors. Those that protect your investment from losses take a cut from the gains to cover the loss. Either way you absorb both the gains and the losses.

How do you know the outside source is real or just a lie? Just how good is the administrator at obtaining gains from the outside source? What is their plan to sustain small losses and more important, large losses? These are a couple of the questions that you should make up your mind about, before you spend your money. Often it comes down to trust.

You can win with these programs. Use the same strategy as you do with the HYIP games (i.e. get your deposit back ASAP, keep some of the profits along the way, watch for signs of stress, etc.)

Conclusion

The bottom line is that we’re all here to make money. Different people look for different things when determining where they will spend their hard earned money. After you pick a program, never become emotionally attached to it. The administrator will always seem like your best friend while the program is running smooth and your worst enemy when they fold. Try your best to remain neutral.

Any way you play it, watch the news daily for any signs that it’s time to run. Your favorite program could be fine today, in trouble tomorrow and gone the next day. HYIP news travels fast and those that watch it often influence how fast a program is built and how fast it falls. Just look at Jude’s long list of HYIP blogs to see who some of the watchdog’s are. His list contains the best of them. It’s always a good idea to use multiple resources to form your own opinions.

For more on this issue there is an article at HYWD, “Pyramid Scheme vs Multi-level Marketing.” BTW, HYWD is one of the news sources that you should be reading regularly.

JMO,
Sharon

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