Revenue Sharing | HYIP - Web Market Support

The vast majority of companies in that industry’s segment are advertising platforms/agencies, at least this is how they are presented to the market. Participants become members, usually by purchasing ad packs and agencies share revenue from their profits with the members.

They attract investors by announcing high standard ROI’s, but in reality, the ROI’s can not be predicted or secured, however, the masses seem to buy packages with ease.

Then, investors, in order to make even more money, advertise their affiliate links like maniacs on the web to recruit new affiliates into the system they use. But at that time they don’t know if they will get paid.

How Affiliates Make Money with Revenue Sharing Systems

Almost every company use an ad credit system that is bundled along with every advertising package purchase. These credits can be consumed by investors in order to advertise their products, websites, landing pages or any other affiliate offer they want.

At the same time, every ad pack returns ROI, as long as it is active. At some point , very ad pack matures and expires. Then investors might choose to re-invest or withdraw their earnings.

Of course there are commissions calculated based on the affiliate downline of a member,.The more active your referrals are (deposit into the system) the higher the commissions.

It seems to be a legitimate system in place with value, but every investor is interested in making money from the ad packs primarily and nobody is interested in watching ads. That results in poor untargeted traffic for every advertisement within the ad platforms.

And the Problems Begin

With what seems to be the easiest way of making money online only a few investors will make real profits at the end. Because all the money coming in those companies is money from affiliates. There are no retail products for healthy organisations.

But the revenue sharing companies claim to offer valuable products, and these are the Text / Banner / Directory or other forms of Ads….. “Traffic” in general….

And this is a BIG problem…making all these companies……..

….Ponzi Schemes

Back in 1920, Charles Ponzi, Italian businessman and con artist in the US and Canada, attracted thousands of investors promising a return of 50%, the minute when banks were offering 5% or less. He planned to accomplish that by buying discounted postal reply coupons in other countries and redeeming them at face value in USA as a form of arbitrage, according to Wikipedia.

But what Ponzi did?…he was paying early investors with the deposits of late investors. And this is the definition of a Ponzi scheme.

The same exact formula used in the 99% of the modern advertising sites.

Securities and Exchange Commissions Department – SEC

According to SEC, a Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.

Ponzi scheme operators solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. At the beginning of such a scheme early investors think that the system is legitimate because they are getting paid, the problem is that the money are solely new affiliates investments.

Ponzi schemes collapse because there are little or no legitimate earnings. These systems need a consistent flow of money / cash in order to operate normally. But recruiting at some point dries out, meaning no new money coming in, resulting in an inevitable collapse. Sometimes a collapse can be triggered by the simultaneous cashout requests of many investors.

SEC- Ponzi Schemes

Additionally SEC finalised that ad credits attached to ad packs does not result in a legitimate system. A recent example is Traffic Monsoon, another revenue sharing ad credit company that has been taken down, leaving over 200,000 late investors losing money.

The key thing is that a company should not use new investments to pay off existing affiliates, whether an ad credit system is in place is totally irrelevant.

My Experience with Revenue Sharing Companies

For me participating in revenue sharing sites is like gambling. For that reason I only invest small chunks that I can easily afford to lose. If you ask me, I prefer to gamble with bets on sports / games and not waste my time with these sites.

But many people and followers asked me to monitor these companies and I listened to my audience.

Whenever I deposit it is a result of a deep research. General rules that I follow are these

I deposit only in companies that DO pay at that time. I ask partners, bloggers, friends and people that I know. If they can answer with confidence I may participate investing my 2 cents.
I prefer new schemes that have potential to attract new affiliates. Older companies should be excluded from your list, the risk is getting bigger.
The 1st week I only watch closely the ads. If only the same ads are displayed I do not invest. If there are new ads replacing old that means new money coming in.
Under no circumstance you will see me promoting these sites with my affiliate links. Even if I make money I won’t recruit anyone to these sites. Because at the end all of them collapse. And I do not want disappointed referrals. I promote ONLY companies with Real / Valuable Products.

Call me afraid or whatever you want, I prefer to earn money doing other things….and investing in such schemes is only helping the owners that at the end of the day will disappear with our money.

It is the easiest way to make money online, that even a kid with no experience can do, but you are solely dependent on unknown owners that hide their identities, provide fake / false information regarding their financial entities (location, names, laws…), have an exit plan in place for the final moment, and you participate in companies that do not provide any value to the market. Not to mention the high risks…

High Yield Investment Programs – HYIP

HYIP companies are very similar to the revenue sharing modern stream agencies.

The main slogans here might include…

High returns in investments with little on even no risk
Annual, monthly, weekly or even daily returns of 30% or more. (daily 1%+)
An innovative technology system might be used as showcase to make believe that the company has external resources of funds.
Secure your future, wealth is predictable, and the rest…

Other companies claim to be featured by financial or trading experts, marketing giants etc..Others are bitcoin or Forex trading corporations but in no way we can verify the “Expertise”…

They build a website, 4-5 pages long, have an income & investment plan in place, an affiliate program and that is where their contribution to the investing world ends. No blog departments, no reports, no statistics and results, the absolute Zero…

Over 90% of those HYIP companies owners remain anonymous using domain privacy protection, fake local or rented addresses, and they operate under no regulation. Some of them might hold a companies house certificate that does not mean much but most of them are not listed in the FCA (Financial Conduct Authority) records.

In reality as SEC affirmed the majority of these programs are unregistered / unlicensed individuals / off-shore companies and fraudulent like hell.

If we follow the Wikipedia related article HYIP’s are Ponzi illegal schemes, investments scams that promise high returns that pay existing investors by funds of new affiliates.

Proceed with extreme caution and DO NOT invest more that you can easily afford to lose. You won’t get your money back.