Every HYIP is moving through the same development phases, a HYIP life cycle. In order to invest with minimal risk, а potential investor should recognize what is the current stage of the life cycle. The stage of HYIP life cycle mostly determines whether a depositor would receive a promised profit or not. The HYIP program, as well as many other projects, goes through several different stages.The HYIP life cycle :
Start-up. At this point, the HYIP administrator loses money because he does not have any revenue yet. During this phase, the program must invest a lot of money: if everything is done legally, then costs are needed for registering the company or a legal entity, purchasing a domain name, creating a site, installing the security system on the site (DDoS, Https, SSL, dedicated server), paying money to be listed on the monitoring site, advertising the monitoring site and forums, etc.
Growth phase. It is, in fact, the true beginning of the HYIP program. At this stage, there appear the first investors, and they can also recommend the HYIP to others. Gradually, the program goes into profit. That is a very Important step that will determine the program life cycle.
Be careful when during the growth phase you can see that the administrator uses a free domain name, free web hosting, cheap standard scripts or copied (stolen) scripts. Also, if he advertises a little, and his site is placed only on a couple of monitoring sites or only on cheap sites, which means that the HYIP administrator does not want to invest, but simply disappear as quickly as possible with all the investors’ money. Consequently, such programs do not exist for a long time.
However, when you see that the HYIP administrator has put neither effort nor money into the project at an early stage, it means, the growth phase is the best time to enter the project. It’s no secret that the first investors will have the best chance to return their investments with interest only if they come out on time.
Carefully analyze the HYIP work at this stage. If the administrator of the program, for example, invests more in advertising or in additional security on the site, it is a very good sign of the HYIP stability.
Naturally, there should be no problems with payments at this phase. Therefore, study in detail forums and monitoring sites, which give a description of a particular HYIP. Of course, you should not forget about it while you are dealing with this program!
Read the Part 2