High Yield Invest Programs (HYIP) Are Ponzi Schemes

That HYIP is a Rip

Are you familiar with HYIPs? If not, that probably means you have found a way not to wade through your spam. Those of us who haven’t yet stumbled upon a way to keep our email boxes spam-free, along with those of us who like to dig through the trash to learn about interesting developments know about HYIPs.

HYIP stands for “high yield investment program.” Sounds like something your neighborhood financial planner might recommend, doesn’t it? “High yield investment program.” Hmmm… We all like the idea of high yields, right? The fact that it is an “investment program” lends it some credence, too. Sign me up!

Here’s the scoop, kids. High yield investment programs (hereafter referred to by their acronym) are nothing more than well-named Ponzi schemes. There is no investment program, unless you count finding tons of other people to throw their money into the Ponzi an investment.

Here’s a disclaimer: There is probably something out there calling itself a “high yield investment program” that is not a mere scam. Such an animal is yet to be spotted, but it may exist out there somewhere in the jungle of the internet.

Here’s a breakdown: You put your money into the HYIP. Based on how much more money comes pouring into the HYIP from other financial wizards just like you, you can earn a return on your investment. At some point, you can even try to yank your “earnings” out of the HYIP. If you are very lucky and do this soon enough, you may even actually be paid. Of course, if too many people do that, the HYIP will fall apart that much faster.

Your earnings are not generated by some sort of concrete investment in any sort of real business. They are generated by other people decided to play the Ponzi game. In order to help keep those participation numbers high, many of these HYIPs will also offer you a kickback for anyone else you recruit into the scheme. That helps to keep the Ponzi running.