What should We Know About Referral Programs?

Updated: 05/26/2007 19:22
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what should we know about referral programs
Referral programs as one of usual possibilities to earn extra money online. Various types of referral programs offered to investors
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There are many possibilities to make money in the Internet. Also HYIP has a lot of variations of money making in addition to general investment in high yield projects. Referral programs are one of the usual possibilities to earn some money online.

What is this? These programs mean getting a commission based on the number of participants you refer. It must be also noted that the sum of a commission depends on the amount of investment of your referrals. There is a great number of various referral programs in the Internet and they usually pay an interest based fee (normally between 5% and 10% per referral). But the commission depends on the activity of a HYIP company, amount of investment etc. In this article I tell about common principles of referral programs' work.

There is no doubt that investors can earn a lot of money on referring other potential depositors, especially if the amount of investment in HYIP is serious. However, there is high risk and some moral misconceptions about referral programs. Many investors try to refer more people from their family, friends and familiars.

They even declaim that they could be a guarantee of HYIP reliability and their referrals would get their interests regularly. But in many cases the high yield income funds fail and all referrals lose all or part of their money. It won't be a great surprise if you become one of the most unpopular people in the family.

Moreover, it will be illegal whether you get compensation for the referrals through losing their money. Therefore, before you refer your family members and friends to high yield investment you should think about the moral side of your earning online. Furthermore, such a referral project can be a real crime and you could face a criminal charge in your country.

It must be noted that referral programs are an opportunity to get interests without investing in HYIP. For example, you do not have this amount of money or you do not want to risk your own financial capital. What can you do in this case? Referral programs propose such investors to offer the project to other persons for a referral fee.

In other words, without investing and risking your own money you can attract other potential investors to this high yield income project. However, according to moral point of view, this is not fair to other people though this can be very easy to lie about your participation in HYIP. Undoubtedly, many HYIP swindlers use this type of earning on referrals. I hope that honest and real investors try to avoid such a kind of making money online.

Talking further about referral swindlers, I must mention that potential referrals and investors can recognize them quickly according to their basic signs. Such swindlers work only a short period of time. They make everything possible to attract people to their programs as quickly as possible and promise high interests and referral fees.

Why? The answer is they want to make a lot of money and certainly do not want to pay out to initial investors. In other words, this is a basic sign of network marketing program which is very cheap and has only short time activity. Of course, it is much better to research and find detailed information about the referral program and the person who refers you.

Many investors have an opinion that most Ponzi and other financial pyramid schemes operate in such a way. Some of them even pay out interests to initial depositors and seem to be real high yield income projects. But the difference between real prosperous HYIPs and Ponzi schemes is that the payouts in Ponzi schemes are made at the expense of other depositors. Real HYIPs make profits at the expense of Forex trade, stocks, etc.

The other important difference is that real HYIPs promise "only" 1-3% per day and Ponzi schemes propose 30-100% daily. You can agree with me that the difference is enormous. And the last thing is real HYIP and referral programs exist for a long period of time and Ponzi schemes operate only a short time (for example, several days, weeks or months).

Another important thing you should know about referral programs is that these programs can be a horrible dream of investment online. You should understand that it is not easy for the HYIP administration to pay out the investors regularly. According to me, this is a very hard work, therefore a real professional portal about high yield investment program must have support specialists and detailed information about all activities and profits of the site.

It must be noted that even a real and reliable project can fail at any moment. And there is no doubt that any investor can lose all his deposit in HYIP. Another truthful fact is that many high yield and referral programs start their activity in a legal way. Some important factors influence the fund's work, image and reputation among investors and can cause the failure of a high yield project in the Internet. The HYIP failure is not a good thing for investors and also the program's administration that gets a lot of problems and must pay out some compensation to the investors.

In conclusion I would like to mention that undoubtedly referral programs are real opportunities to earn some money at the expense of their referrals. The condition of successful referral program is reality and reliability of the program. You should remember that there are many swindlers in HYIP, however if you operate in a clever way you will receive your high interests.


About the author

Abby Anderson is a a multi-skilled copywriter with good all-round writing and creative expertise. She is a very capable professional with an ability to identify and then deal with a clients needs and then translate them into crisp, compelling, creative and informative copy. Experienced in providing motivation & guidance to colleagues to produce copy write for products that will have a real impact on the lives of people. Abby has excellent interpersonal skills, she is a good communicator, emotionally mature with calming and positive temperament and understanding disposition.
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