Many people have tried an assortment of (so called) High Yield Programs and have been disappointed with the results. I find that this is mostly the fault of the participant, not the fault of the program or the programs that are selected.

It is obvious that 99% of all programs are not real programs. Instead, they are deliberate ponzi schemes, which pay some people a profit at the expense of others. I have described how this process works in more detail in previous newsletters, but basically money is redistributed. No new money is created, which means some people must lose money in order for others to gain it.

Since 99% of all programs are not legitimate earning opportunities, how do you know which programs are worth checking out and which are not? Experience has indicated several factors that are prominent in all questionable programs. Perhaps these notes will help you to stop losing money in the future.

The most common feature of all foolish programs is a small entry fee. While high entry fee programs may or may not be legitimate, all small entry fee programs are scams. Some programs accept as little as US $10 while others look for US $50. There are real programs that are trader direct and really pay amazing interest rates, but you must have at least US $1,000,000 in order to get into them. Unfortunately, those are very rare; most of the real programs require at least US $10,000,000. That is a lot of people at US $10 a head.

Now, why do scams focus on such small amounts? First, when they steal the money, you are not likely to be very annoyed over US $10. Second, a lot of people will risk US $10 on something they think might be a scam while they will not try US $1,000 on a program they think might be real.

US $10 will cover a movie ticket, a novel, and maybe one-fourth the price of a video game.

It is not possible for a company to support member email and accounting with such a small investment and still have any money left over for the investment. How much time do you think it requires to track deposits and earnings or to answer email? If it requires more then a few minutes, and it does, then your US $10 is already spent just setting up your account and maintaining your records.

A company that accepts a deposit amount that is smaller than the cost of overhead obviously does not plan to speak with you very much or to maintain your records to any great extent.

Next, many companies which offer a large sponsoring bonus are generally not real companies. The purpose of a sponsoring bonus is to cause people to advertise on the behalf of the company. In other words, if you talk your friends into enrolling, then the company will pay you a portion of their money. Up front large sponsoring bonuses are nothing more than a lure for greedy people.

Companies that focus on heavy recruiting do that because they anticipate a short life span. In other words, they want as many people as possible to enroll in as short a time frame as possible. To say that a different way, it costs them nothing to pay you a small portion of the new member deposits because they keep the rest and they want as many people as possible to join before they close.

Sponsoring bonuses are generally paid instantly. Some people think this means the company is working and legitimate, but paying something so quickly always means a scam.

Paying you a part of the new member deposits up-front does not mean the company is legitimate, it just means they are trying to accelerate the enrollment rate. It also means that the actual investment is not as stated or is not very real. Payment of up-front fees lowers whatever is left over from the US $10, after administration costs are deducted, from the amount put into the investment. Once the sponsoring bonuses are removed from the new member deposit, the amount left over is rarely anything that can be pooled for a US $1,000,000 trade. In many cases, this is something like US $5. How many people need to enroll at US $5 per warm body in order to generate US $1,000,000 or US $10,000,000?

Most people use their sponsoring bonuses to convince other people that the program works, which is why those payments are made. However, even a couple payments will never prove anything. There will always be money for a few token payments. The up-front sponsoring bonuses are a small price to pay for the many new members that will enroll as a result of those small payments.

By the way, new programs that pay sponsoring bonuses or earnings right off the bat are also (in almost all cases) a scam. These earnings are suppose to come from a trade source of some kind, which is not possible until people pool up to the amount needed for trade. If you are among the first 1,000 people in (at US $10, US $50, or even US $100 per person), how can they already be in trade? Taking this a step further, if they are already in trade (and earning the 50% monthly or whatever they advertise), then why are they bothering to include you and your US $10?

Another scam indication is the short time frame for payment. Again, this is designed to put token payments into the hands of people very quickly so that they will sponsor others very quickly. When these payments happen, most people will be happy with the payments and report that the company works, but that is the same trap for greedy people as the sponsoring bonuses listed above.

Some programs promise a payout in as short as a day or two, others are at three days, and some say a week. Unfortunately, none of those time frames are physically possible. As you know, Evocash, E-Gold, E-Bullion, OsGold, funds in small banks that are not SWIFT capable, and so forth, is not tradable. In other words, funds invested with a company via an electronic currency must be moved into a real bank (actually a top world bank) in order to generate a profit.
   
If the payout time is one week, you must factor in three or four days to wire transfer the money (your US $10 or US $50) into a bank for trading. By the same token, you must also factor in three or four days for the profits to be wire transferred back into E-Gold or Evocash. At some point, earnings must be obtained, which is at least a couple of days. In most cases, trades pay weekly or monthly, but lets use a week in order to earn 100%. Using that week to earn an impossible earning rate, you would need two weeks in order for earnings to be generated and paid by the program.

Any program that promises to pay earnings in less then two weeks is a scam. The money for payments is obviously coming from member deposits. It is possible that other funds are already in trade, but to be realistic, all programs with short payment dates are not legitimate or physically possible.

The flip side of the time frame issue is extremely long payment dates. These dates are such so that the company can fade away long before people start looking for their funds. A program in this category might be pooling funds for a couple of months with the expectation to get into trade later (which will require a month or two before profits are paid). Or it might be selling some kind of promissory note for payment in a year or two. Either way, the money will be gone in a couple of months and you will not even know the company has closed.

Other programs offer fixed payment time frames, for example 44 days or something similar. The trade is based on US $1,000,000 or US $10,000,000 and is ongoing long before your US $10 or US $50 was added to the pot. There is only one trade and it pays when the bank contract says it pays. The company, unless it has 365 million dollars, is not starting a new trade every day, which means the 44 days (or whatever) are pointless. It is just a marketing tactic.

You may infer that, because a new contract is not starting every day, that payments based on your date of membership are not realistic. In other words, that program is not legitimate, or even physically possible.

A final common scam give away is a high interest rate. Promising to pay somebody 100% in a week is what it takes to generate a lot of greedy people to donate US $10. Most people are happy risking US $10 or US $50 on a program that pays 50% a month. However, in reality, if something really paid 100% in a week or 50% a month, why would they bother sharing that with people putting in US $10?

The real programs, which really exist, pay around 25% to 30% monthly for US $1,000,000 or around 10% weekly for US $10,000,000. If you fax me a bank statement showing you have either US $1,000,000 or US $10,000,000 cash (which is free and clear and housed in a non-depletion sole signatory bank account) that is what you will earn. On the other hand, if you fax me a bank statement that shows US $10 or US $50, then you are wasting my time.

How is it possible for a company to pay a higher interest rate to somebody with US $10 than a person with US $1,000,000 can earn when that person can sit down with a real trader inside of the trade bank?

Of course, there are people who will tell you that they know of trades that pay much more then the 25% to 40% monthly as listed above. I suppose that is possible, but I would like to know the personal proof they have of this performance. Somebody brokering a program, which has never earned a commission to date, is not a very good source of trade industry information. On the other hand, we have seen 25% (US $1M) to 40% (US $10M) pay as stated in the past and it will pay as stated in the future. Other people will try for years at the fictitious higher earning rates and will never succeed for one reason or another.

There are many indications that a program is questionable, these are just the points that most people will grasp without too much thought or effort. It is possible to earn money in a scam, as long as you are one of the early people and do not mind causing other people to lose money. Hopefully this section will help you to stop losing money in foolish programs and also stop you from causing your friends to lose money in foolish programs.

If a company you are in closes down, then look at why that happened. Was it because it was shut down by big Brother (which is possible) or was it because it never was a real company (which is also possible and very likely).

 BACK   BACK TO HOME PAGE