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Published on 05-19-2012 07:14 AM
As many of you are aware of, there are times of year when numerous scam sites come out of the woodwork in order to steal some extra cash for holiday spending. Along with plain out scams, there are also programs that we like to call Leaches. These are programs that feed off of the stable longer lasting programs.
It is more then likely that many people are creating HYIPs and simply putting all of the members funds into these more popular programs. They then can pay out a slightly lower % and profit with the rest. For instance they may create a program that pays 5% per week, and then invest it all into a HYIP which pays 10% per week. This leaves then with a hefty 5% of all deposits that are made into their program each week. Not bad from an admins point of view.
Whats wrong with this? Well, the admins of these “leaching” programs are basically telling us a lie. If investors knew what they were doing, then they could simply invest their own money in that 10% HYIP and make out twice as well. Another problem that occurs is that if and when one of these trusted programs fails or stops paying for a period of time, all the “leaching” programs will simply fail. This has been seen in the past when programs like Genius Funds, Panamoney and CherryShares failed. These failures caused dozens of smaller, lesser known HYIPs to be forced to close their doors as well.
All in all we recommend investing in the programs which have been around for a while. These are programs that are truly committed to their investors and are run by responsible people who are not looking for a quick easy buck.
Your best HYIP strategy tips : The Leaching Theory