Here is second part of my article ‘The HYIP Life Cycle’. You can read first part here.
- Stabilization phase
During this phase, there is a steady inflow of investors into the program, and the HYIP gets profit. Investors also regularly get their interest. There is neither decrease in advertising costs nor problems with payments.
Perhaps, this is the right moment to join, provided that the investment plan is not designed for too long.
Also, it may be an opportune moment to exit if you have already achieved a good profit for yourselves and want to keep your investments in order to invest in other HYIPs.
- Saturation phase
Generally, this period is beginning of the program end!
The flow of investors is falling, as the HYIP has exhausted much of its resources. What are the characteristics of this stage?
Firstly, the administration can be seen to make futile attempts to attract new investors to the program, therefore, costs on advertising increase. Secondly, interest payments to partners or percentage rate for payments rise. Thirdly, there are fewer comments from investors, as generally only program administrators begin to write them.
It is important. Undoubtedly, this is your last chance to get out of the program. In case of a ‘pyramidal’ HYIP, you will have just few days before the program enters the decline stage and then disappears altogether.
Only in some cases, the HYIP can survive at this stage and pay off investors in full. In this case, it will be a measure of seriousness and reliability of the HYIP administrator. After a careful analysis, you will already be able to decide whether to invest further in the program or not.
- Decline phase
This is the final stage of the HYIP life cycle. The program at this phase loses appeal and enthusiasm of investors, that is, it ceases to develop. Since there are no more new inflow of investors, so there are no available funds for interest payments to existing investors, the administrator may simply disappears with the accumulated money available.
At this stage, the HYIP program becomes a scam. If you have not yet left it up to this point, you are unlikely to get your deposit. Now you understand that it is important to define a particular phase of the HYIP program development as clearly as possible. Any miscalculation can lead to capital loss.
Someone might say that the practice will lead the investment process to perfection… However, if you use the above-mentioned tips, you can avoid unnecessary losses and errors.
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