ok, so i'm fairly new to the online business scene and have only been posting at DP for about a month. i spend most of my time in the services/content creation area doing freelance stuff like forum posting and article writing... so i have been browsing various other non-DP forums online and have come across several that promote HYIPs and matrix systems or "doublers"...my question is regarding how legitimate and legal these systems are? do they actually work? are they illegal? basically n00b questions. if anyone could provide any insight i would appreciate it a lot. thanks
Good question. I myself don't understand these HYIPs and matrix systems. I have stayed away from them. Would like to know too if anyone made any money from them.
HYIPs are in a legal gray area that leaves you generally okay profit wise, but you won't have much cover if they scam you. Matrixes and doublers are illegal as they are officially pyramid schemes. I personally don't think that there is any money left in them. There were times when one could get in and out quick for a profit, but they are all just a bunch of scams now.
^^ I agree, you used to be able to get money and still can, but now-a-days its like you got to put your money directly when they open and then pull out quick with NO RE-INVESTMENT. I don't suggest you to get into it myself...
thanks for the info guys, pretty much what i expected, just needed to see some people validate my first instinct i guess.
its used to be big money makers in the past.. after e-gold got indicted.. its now almost dead and silent.. few 500-1000 ppl are still waisting their money on it.. besically its sort of gambling for members or investors.. say a site opens saying will give you 10% profit per day.. for say 14 days.. + 10% ref commission minimum to join is $5. you join with $5 USD then you earn 10% per day.. if you are lucky and the hyip continue for 14days.. or say you have joined early .. you will make 140% return or close to that.. if the hyip owner isnt getting any more new members and deposit.. and decide to close the hyip on day 10.. or say on day 20th. and say you joined late.. you are in some loss.. say you earned back 50% or 60%. you lost 50% of your $5 initial investment.. -------------- now who is actually making money out of these ponzy programs?? FIRST IS ADMIN or the Program Owner 2nd is Top Referer or members who promotes and brings 1000$ deposits So if you know how to promote hyips you can invest 5$ and make $100 to $500 a day just promoting them and payment instantly or auto withdrwal to your e-gold.. ............................... liberty reserve and vmoney has come to take place of egold for this gambling game in internet .. thats going on from last 5-10 years.. Scammers have made their houses with the money .. and investors and referer also made a fortune and running luxary cars investing in these ponzy type scams online.. Some affiliates have huge list of hyip investors database.. when ever a new trusted hyip is launched they used to make 1000$++ in ref commission alone Hope you get the idea..
the difference between affiliate programs like clickbank shareasale etc to hyip programs is 1. you can join affiliate programs for free.. you cannot join hyips or autosurfs or matrix ponzy for free.. you must pay minimum deposit and maximum is $10000. ================================================ 2. Say you invest 50$ or 100$ in ppc advertising.. to make a sale or conversion.. chances are you will say bye bye to your 50$ or 100$ it will end up in as profit of google or msn or yahoo search marketing .. but on the other hand.. if you deposit it in hyips(who are paying and trusted scam) you will make some profit.. some instant ref commission.. or loose 60% 70% 40% of the investment you made.. ============================== 3. you have to wait 15 days or 30 days or 45 days also reach minimum payout like $100 to get payment from affiliate programs.. like google adsense or cj or clickbank or shareasale.. etc 3. you will get paid every day.. even hourly or miniutly and directly to your e-gold..
Here is the thing, I thought a few times of running my own HYIP program, but it would be a legitimate one that would run for month's and when it starts running dry, I close the program and finish paying everyone. The concept is to use invested money to invest in "Incentive Websites" and I would guarantee up to a "reality" of 20% return on their principal PLUS their principal back. I still would like to do this but don't have the funds right now to invest into this so anyone who may want to talk further business or sponsor me, please send me a PM.
the reason why e-gold got indicted.. and the hyips facing bad days.. ALL the affiliate programs like CJ.com EBAY.com Clickbank.com etc are from USA.. and uses paypal and checks. and follows strict USA rules for identification taxation etc.. and restrict many countries to be affiliated with them.. for example people from IRAN cant open a paypal account.. and people from North korea cant get access to many affiliate programs.. But e-gold had No restrictions and verification in place.. And hyip owners (program admin or owner) could be from any country.. Like iran or north korea or any terrorist inficted country(as per USA thougts).. Millions of dollars was moving without no proof where they was moving .. A person could exchange his her earnings from a friend.. say i have $500 e-gold.. i can get cash from my friend who needs e-gold.. or exchange it with a offshore local exchanger or near by my country ,, so usa cant track who is earning and money going to whom and for what purpose... So USA as they think they are owner/inventor of the internet .. dont want this money to travel like these way.. But unfortunately.. Nobody can control peoples demand or wishes.. Thats why God never appear to us... cause if he appeared to us.. and said i say do this and dont do that.. many would oppose him and their would be so much questions to GOD.. that God would have to hide somewhere to get the answers.. So he gave us free will and do whatever we want to do.. But GOD is Alimighty and greatest punisher.. Punishes silently for the sins and bad things we do that GOD dont like.. Liberty reserve came up with no verification and same like e-gold.. and allows everybody to open account and do whatever with their money.. So US now have to re think what they want people to do on internet and what they dont want...
Hi bro.. i understand you want to be honest.. but trust me honesty has no value in dishonest world.. for example say you are lady.. and you want to do porn biz.. or sell your sexy pictures or movies or sell your body to people for their charm.. you say i will dress up like mother merry.. or nuns.. or i will be like muslim who cover their head and hands in black dress... people willl start to laugh..
^^ I get what your saying but I believe that it could be possible for some to fall for it. Even when those people who still invest in HYIP's invest in mines and see its legitimate and goes for atleast a motnh, many will be like "OMG, this place is truly a serious place to try and tell about." Just my .02 cents
no what i mean to you is.. after they see in a month you are truely honest.. you will get millions of dollar deposit if not then thousends and thousends of dollars around 50K+ now here is the bad part.. How will you manage that money?? You will invest that money to promote cpa programs.. and make profit and pay them??? You will use ppc and other advertising right?? Chances are with that much amount you will start to make losses... and affiliate programs will start to delay your payments... and lastly e-gold liberty reserve or your bank or western union will start to freeze your accounts and ask terrible questions that will take years to answer and resolve... and may be you will get a ring from FBI .. why you taken so much money from people..?? On what ground you take so much money.. do you have license to take investment from people?? We are FBI cats team and found your case very interesting.. Please come to our office and report yourself.. or we will fly to your destination.. thats what happend to 12dailypro owner who was somewhat honest from start .. and its a history..
In theory, this is how it should work. Check out http://www.mirroreyes.com/smallbiz/makemoney/hyip.html However, most of the small time HYIP are Ponzi Scam. Most would offer a high daily or weekly payout to entice people to put money with them. Normally there is no capital protection so if a HYIP offers 1% per day, it would mean that it would take 101 days before you see profit. In that time, they plan to draw more people to invest. The whole plan would be to initially use your money to return you so that you will feel that it is a good plan and entice you to put in more money and also recommend your friends to do the same. So it would take new money to pay the older members and the cycle will continue until the new sign up starts dropping or when it runs out of money or if the HYIP starter decides to stop and pocket any remaining funds. Most HYIP would use e-gold and the likes because of the anonymity e-gold provides and the one who sends the money has no recourse or refund options. This HYIP is profitable only for the early birds assuming the HYIP still pays after you get back your capital. They are usually unlicensed and thereby illegal to operate. Most do not offer any transparency as to what they invest the money in and does not actual invest in anything.
think about it this way, if the returns were safe and guaranteed wouldn't all the stock brokers and day traders come rushing in and forget about the seemingly low paying markets? Theres nothing that protects you from losing your entire investment, and the investment isn't actually investing in anything, other than the hope that someone below you too will invest for you to profit
^^ What do you mean. I wouldn't mind the investors coming in, just not too many of them because I don't believe my idea is built to be stable enough for people to make $3k-$4k investments.