The HYIP Life Cycle

The HYIP program, as well as many other projects, goes through several different stages. The HYIP life cycle:

* Start-up phase is also known as the “initial phase”

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 of 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, also known as “expansion stage”

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 HYIP 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 couple of monitoring websites 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 fist investors will have the best chance to return their investments with interest only if they come out on time.

If the HYIP offers and affiliate program, you can earn additional income as a referral, especially if you are among the first.

Important Advice: 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 problem with payments at this phase. Therefore, study in detail forums and monitoring sites, will give a description of a particular HYIP. Of course, you should not forget about it while you are dealing with this program!

  • 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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