This post is part of Free Guide to Investing in HYIPs. Click here to read the previous article.
HYIP Monitoring is another important source of information. HYIP monitors trace through HYIP programs and make the classification / rating of HYIPs. They post information about the payment status, investment plans, the launch date of the program, etc. Moreover, monitors offer blacklisted HYIPs that no longer exist or do not pay.
Monitors make the HYIP classification by type of “gold, silver and ordinary lists” or “higher, average or lower levels” or something like that. This distribution does not reflect the HYIP quality and reliability because many administrators pay monitors for their sites to be included into these lists. Administrators of some monitoring sites decide unilaterally what status a HYIP is to be awarded. But the criteria for such an assessment are not always clear.
How do monitors work?
When an administrator wants to register his HYIP program, he must pay a fee. It is equal to about a minimum deposit that new coming investors have to pay to this HYIP. Of course, this is true only until the site-monitoring requires increasing it. Thus, the HYIP administrator pays this amount to the monitoring site, which will invest in the program as well as any other person.
It is a long known fact that many HYIPs pay interest only to administrators of monitoring sites (in the review of the program it will be stated “paying”) to mislead investors. Some monitoring sites ask HYIP owners the amount which is bigger than the initial deposit, which they do not reinvest back into the program.
Another source of monitoring sites’ income is affiliate commissions received from HYIP programs where investors put their money in, going by referral links to the monitoring site.
Important advice: Be careful when analyzing information on new or newly opened monitoring sites. At the first stage of their work, they often enlist HYIP programs for free to build a client base. The truth is that the more investors will come to the monitoring site, the better its rating is, and the easier it will be for HYIPs to pay to be added to the list, and the more expensive an advertising space will cost on the site.
To be continued. Watch out for updates in the blog!;)