First I want to thank Mr. Interesting for answering my last thread and making things so clear for me. He deserves applause!
I'm hanging in reading and absorbing all I can find.
Have a question that I think must be stupidly clear and I'm not getting it.
Why is it that HYIP Monitors list a HYIP that says "104% after 1 day", then say "PAYING", then says Payout ratio 11%.
In my mind "Paying" should mean they had gotten the 104%. Am I wrong?
In fact nearly 100% of the monitors list far less than 100% return of their initial deposit.
I must have been told wrong when I asked what a Payout Ratio is and was told it is the percentage of starting invest money that has been returned.
What is wrong here? Am I missing something real stupid or am I to wise about something?
Thanks for any help! Pennie77 [/font="Tahoma"][/size="3"][/color="#0000FF"]
Usually HYIP monitors charge around $30 to $100 to HYIP admins to list the program on the monitor.
Most HYIP monitors will deposit the full amount in the HYIP.
HYIP program admin pays monitor $100 for monitoring service. Now monitor will deposit $100 back into the program.
After one day, earning will be $105. But the monitor will not withdraw the $105. If he does, he is not monitoring the site anymore because he withdrew all money.
So the monitor leaves the $100 invested, and just withdraws $5. Sometimes monitors will have referrals, so he will earn more than $5. That is why payout ratio is like 11% or whatever you saw.
The next day, the $100 becomes $105 again, and monitor withdraws this and posts paid everywhere.
Now sometimes a tactical, sneaky, wise, or poor (whatever you want to call the HYIP admin) will create a monitor plan, just for monitors, and this is like 1% per day, regardless if there are other plans like 105% in one day.
So the monitor deposits $100 into the HYIP, and then the HYIP admin will place this deposit into the 1% plan. So the poor monitor can only withdraw like $1 daily.
This is how an admin with about $110 in advertising funds, can get $750 or more in deposits.
He sends a monitor $100 and the monitor deposits it in his HYIP. He has $100 in now.
He sends a 2nd monitor $100 and monitor also deposits. Admin has $200 invested in his HYIP.
Monitors usually have messengers on and are usually online, so admins can chat with monitors who are online. This is how he can launch and have $1,000 in invested funds within a few hours.
Of course, admins can always make fake accounts and fake deposit statistics, but the HYIP admins do that mostly after the monitors have deposited.