My Experiment In HYIP Investing For Small Business

Posted on Jul 23, 2010 with Comments 10

So we have layoffs, business closures, and bankruptcies happening right and left. People are out of work, and economies are struggling worldwide. No matter where you go, small businesses and their employees are feeling the squeeze. You don’t need me to state the obvious, but there it is. As things seem to get more difficult, winners try to look at all the angles and see if there’s new opportunities and doors to open. Successful small business owners are not usually opposed to trying something new and taking risks within reason, and I’m one of them.

So as a small business owner, I’m trying something new to generate some extra cash flow. Who was it that said that “the true sign of insanity is failing consistently, and never changing your tactics?” (I was paraphrasing there.) So I’m trying something new at least for me. Any investment is a risk just like starting a business, and the general rule of thumb is to never invest more money than you can afford to lose.

For those of you who don’t know what a HYIP is, it is simply an acronym for “High Yield Investment Program”. You can stand to either make a lot of money, or lose money in a highly volatile market. To be completely candid, they generally have a bad reputation for being fraudulent, and for good reason. In the early part of 2009 through 2010, there were (and still are) a large number of HYIP’s that have been proven to be scams. Countless people around the world have been scammed and lost money, particularly on “Ponzi Schemes“, which unfortunately some people associate with all High Yield Investment Programs (HYIP’s). This simply is not true from what I’ve researched.

From reading countless forums and posts from experienced HYIP investors, they council that you need to follow through with “due diligence” and investigate the truth behind the investment company. Having said that, there’s never a sure-fire way to know if a company will at best – fail by trading currencies or stocks poorly, or at the worst – just steal people’s money and disappear. The latter happened to me it seems.

As a newbie who didn’t know anything and didn’t follow through with any “due diligence“, I first started off investing with a company named Truearn.com and invested $200 early in May 2010. My account said that I was in profit after 20 days and my profit was $43 dollars. I tried to withdraw my $243 dollars and haven’t heard from them since. They never replied to my emails and haven’t been responding to anyone else who invested with them since. Lesson learned.

SO WHY AM I INVESTING IN ANOTHER HYIP?

Good HYIP’s do exist, and many people are making good money on them despite the economy. There are HYIP’s that intend to be around for a while and make people (and of course themselves) money. If you follow through on the “due diligence” when looking at a company then you might possibly find an investment that you want to be involved with.

I found an investment company that has appeared to stand above the rest. I’ve been impressed with the level of customer contact and communication that this investment company has with their investors. You might have noticed that I haven’t called this company a HYIP, and that’s because it just doesn’t seem to fit. They’re much more than that.

I’m talking about CherryShares.com based out of Hong Kong. I started investing with them right after I got burned with Truearn.com and scoured the internet on any dirt that could be found on CherryShares, and I haven’t found any yet. Money Magazine, an online investment blog has an interesting interview with CherryShares. What impressed me about this interview was the frank and open dialog of the Managing Director of CherryShares, Dane Wolf. There’s a refreshing bit of candidness and addmitance of past business mistakes that is a welcome change to all of the hype out there.

I found it really encouraging.

HOW MUCH I’VE INVESTED

I started out with an investment of $184.00 after the currency exchanger fees. For those not familiar with the process of funding an investment account, you have to have a digital currencies account and work with a digital currency exchanger. I have an account with Liberty Reserve, as I’ve found them to be accepted world wide and have the best rates and security.

CherryShares has a daily 1.1% interest rate plan. So, let’s say if you invest a $1000 dollars today, you would have $11 dollars profit tomorrow. The nice thing is that your profit is also compounding too. So if you do the math, if you invested the $1000 today you would earn $30,000 by next June 2011 with compounded interest. You can also turn off the compounding, and just withdraw the daily interest of your initial investment every Friday if you choose to.

My initial investment and daily profit has now reached $221.36. I plan on taking out my seed money (original investment) as soon as I’m able, then I’ll be playing with their money. I know it’s a long shot, but I figure I can lose $184 at the worst case scenario. If this works, which it seems to be, then I’ll definately be worth the risk.

I’ll be posting the updates on this investment every two weeks. You can stay tuned by bookmarking this page or subscribing to my RSS feed.

See you in two weeks!

Aaron