HYIP or HRIP?

Question:
I have a question on HYIP programs I have seen on the Net: are they just another “doubler” in sheep’s clothing or are they legitimate producers. I'm sure there are some that are crooked, and maybe some that are not......Here is sample of one home page.. I don't understand all I know about it:

12 days deposit. 600%
Plan Spent Amount (US$) Profit (%
Standard Plan $1 - $200 300.00
Expert Plan $201 - $500 450.00
VIP Plan $501 and more 600.00

Thank you for your time and opinion of this type of program. John

Answer:
Ok, in the finance world there are plans and services called "High Yield Investment Plans." Of course what you also must understand and appreciate is that these plans, even the best of them managed by rock-solid companies are also: High Risk Investment Plans! So, whenever I see HTIP I replace it with HRIP.

These plans usually involve the managing company investing in something that has an immediate or "quick" turn around....like pork belly futures just before the market opens, or other fast pace wall street type trading investment. They are "betting that they will buy low and sell high quickly thus realizing a ROI sometimes in that day (or hours.) But, it is still a "gamble" and there are often times more losers than winners.

When looking at a hyi/hri I would consider the following:
1. Who is the managing company? are they rock solid? do they have a history? usually a whois on the domain can at least give you a clue. I look for corporate affiliations, date established, date domain expires and etc. Ken, my partner in all things Xtream, usually does a follow thru by contacting the management of the company and asking some questions about them and the program in question.

2. What is the money being invested in? What exactly is being done to create that "yield?" Sometimes hyi are based of off gold standard and international currencies. What ever it is that is producing the "yield" (or not), you need to know this. If they are basing "yield" off of new members investing money, it is a "doubler" in another form. Doublers are inherently unstable for a number of reasons.

These are absolutely 2 things which must be investigated before committing money to a company: including FUNDING. I hate that term, just another way to say "spend your money with us." Because that is EXACTLY what you are doing: moving your money away from your control and into the control of someone else.

3. I always take projections and guarantees with large doses of salt. You can pull figures out of hot air and make them look wonderful all day long. The only thing that matters in the end is RESULT. Equally, guarantees are only good as long as the company is still around so that determines final "result."

Given the limited info provided, I would suggest thorough investigation prior to committing money. Period. I would not give them a single penny until I know for sure who they are and if they are really legit. A lot of people out there count on a member being able to "lose" a couple dollars!!! Get enough of them and you have a sizable income for offering nothing more than pretty words on a site and a lot of smoke and mirrors.

Bottom line: be skeptical, do the research and keep your money in YOUR OWN hand

Sincerely,
Cherie Halliday
http://www.xtreamsurf.com/