Frequently Asked Questions from Investors Letters

Updated: 12/19/2004 01:03
Reprints/Permissions  Hyip Monitor
People like to ask questions even if everything is clear for them, just in case, just to know, there is a person somewhere over there, the person is clever enough to give them confidence. We all know that HYIP world is a risky venture. You never know whether You lose or win investing in this or that company. And, of course, there are no guarantees, hence investors don't have confidence in the future of their investments. One of the most important things in doing HYIP project is to have a really good feedback. It's the matter of psychology. Today we'll touch upon the topic, which is going to be rather interesting for HYIP runners.


A couple of weeks ago we decided to carry out the journalistic investigation, figuring out what people (current and potential investors) want to know and we got some certain results. Here we are - we have 6 most frequently asked questions to any possible HYIP. We will discuss each of these questions separately so that our readers could get the detailed view of ours on this matter. - The first thing, people are interested in, is whether a HYIP gives back the initial deposit at the end of a program.

It's natural. There are HYIPs with the initial investment of 1$, 2$ or 10$ (mostly SCAM by the way). Having invested money to that sort of HYIP, You don't even think of them, it's just a gamble - but, there are HYIPs with the minimal investment amount of 100$ and more. Yes, now investors are getting worried whether everything will be OK with their money. Anything can happen; we are not going to talk of SCAM programs, Ponzi schemes etc.

Just imagine the situation: suddenly all the investment markets stop or You are always DDOS attacked, whatever. Of course Your investors are getting nervous and they want their money back, if You give it back to them, they feel very relieved and there is a great opportunity that they will invest it back when things become normal. And guess what? They will likely invest to a HYIP, saying that they will be given the initial investment back at the end of a program or in case of some force major situation.

- The second is - whether a HYIP provides some non-virtual contact information. And again it's the matter of confidence. Writing an e-mail is good, it's fast, it's convenient. But please, tell me, isn't it better for a person to make a phone call, listen to a voice of an alive person or ask the same question, let's say, through the fax? It gives more confidence. However, for the sake of fairness, we should admit that it's almost impossible to find a HYIP program, having any non-virtual contact information, i.e. telephone, fax etc. the problem is that HYIPs are counted on web users mostly from different parts of the world and e-mail sometimes becomes the only means of communication; the HYIPs themselves are located mostly in offshore regions (otherwise, it would be almost impossible to bring such profits every day/week/month).

- The third important question is whether an investor should pay taxes for the profit received in a HYIP. The question has something in common with the previous one. Here we deal with the peoples' greediness. Of course, as soon as a person earns easy money he starts to think: ''Oh, my God! Do I have to give some part of it to the state?'' You can do nothing about that: people are just people. They are week and greedy. You tell them: ''Listen, I have a way out for You not to give any money to anybody else as a tax''. Here it is. You register Your company in an offshore zone and...Bingo! No taxes, You just earn the net profit! All the investors are happy, they tell their friends that there is a nice company, one can earn money with, and what is the most pleasant, there is no need to give any part of Your money to the state, because they are located in an offshore zone. Everybody's happy, both the owner of the HYIP and investors.

- Next question, investors are interested in, is whether the interest rate, given by a HYIP, is simple or compound. In other words whether the percent is fixed during the entire program or it changes and grows along with the profit. Investor is happy when he sees first-hand that his program is working and the interest rate is constantly growing. It does matters, imagine - You invest 100$ in a HYIP with a fixed interest rate and, after 5 months, when Your profit is much more than Your initial deposit, You still get the interest from the amount of 100$. Isn't that frustrating? And just the other way round. You invest 100$, in 5 months the profit amounts to, let's say, 500$ and You receive the interest not from 100$, as it was during the first month, but from 500$, in that case the investment works to its maximum. And certainly - HYIPS, offering compound interest rate, win!

- Next one - whether a HYIP provide any profit withdrawal stages or investor should wait till the end of the program to withdraw the total profit. Being not able to withdraw the money when You need them a lot, is a kind of a situation when You see the money, You know it belongs to You, though You cannot use it. It is depressing and many people may have some doubts, whether they will be allowed to make a withdrawal, for example, in 10 months at the end of the program. Man is a fearful creature - he doesn't only have to view the money, he needs to ''hold it'' in his own hands. That's why withdrawal makes a person confident in a HYIP, as well as gives opportunity to take the money out of the program almost anytime he wants, not merely at the end of the program.

- And the last but not the least frequently asked question, investors are interested in. People wonder, how a HYIP transfers the profit to investors' accounts? Whether by means of e-currencies (E-gold, Netpay, IntGold etc.), or bank wire, any other means. Money transfer - what can be more important for investors. It's the ultimate point in the program' work. It's worth all the efforts. Every investor needs to be sure that his money are OK, everything is working properly.

There are some variants of transferring the money: using e-currency, bank wire etc. There are some most popular e-currencies, used for settling accounts with investors (E-gold, Netpay, IntGold), this way is rather comfortable, what is the most important it's anonymous, however, after Evocash closure there is a credibility gap towards e-currencies exchangers. Yes, sure, it's more convenient, though who says - it's safer? Internet is full of hackers, willing to crack the accounts and take smb's money. If the amount is small, it's OK, but what if it is 25 000 or even more...? In this case bank wire is more reliable, though non-anonymous, but who cares.


About the author

Lella Prior has been at HYIPNews for five years. She is an articulate, confident person who relishes challenges and working under pressure. Lella Prior has been taking much care about writing. The greatest strengths are the research, communication and writing skills Lella has. Thanks to the work at HYIPNews Lella Prior has an excellent opportunity to write good quality content.
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