For a private investor almost all options for risk-free investing are closed. That means, if someone wants to invest money and soon get high incomes from the investment, he/she will risk anyway. You can, of course, deposit your money with a bank, but the private investor rarely has enough initial capital to make a fortune out of the bank interests. That is why the only way out is to invest your money into high yield risky projects.

You should always be careful about the programs connected with risk. First of all you should do your best not to engage into false project or financial pyramid. You have to carefully study all program features and only after that start investing.

The situation gets more complicated because even the trustworthy projects fail sometimes. It happens, for example, when program leaders did not manage to promote their program right or played fair on the currency market risking all their funds.

There is a number of rules and peculiarities by studying which the private investor gets the possibility to minimize the risk. Let us consider them in more detail.

The nature of the high yield income programs is such that almost all of them terminate their activity someday. Pyramids programs fail losing all clients investments, serious HYIP paying off to their investors come to an end. Surely, all honest projects are developed in a very accurate manner and designed for a maximally long functioning term. But often the closure is connected with the objective economic reasons that are very hard to eliminate.

A standard living cycle of high yield income projects comprises four stages: pay-back period, period of growth, period of saturation and descent period. Here they are in detail.

Pay-back period is the birth of the project. The creators of any HYIP invest some money into it. First of all, they are needed for creating a well-functioning and nice web-site, for content development, registration in paid rating systems and for advertisement. It all costs money and as the project does not bring any profit yet the period is always loss-making. One cannot assess the reliability of the project during this period; however, there may be some indirect signs that the project is a fraud. For example, when the web-site is hosted free of charge and all content is stolen from some other web-site, it is intended to collect money and close itself.

Growth period is the beginning of projects functioning. During this period the investors appear who try to attract additional clients with a view to get the referral payments. At some moment the project comes over the point of self-sufficiency and starts bringing the real profit. The project success at the stage depends on the scope of methods applied for attracting the clients. A direct sign that the organizers plan to further support the program are the various strategic actions such as extra money to the account of everyone who register in the project, for example.

Period of saturation is the most stable period in HYIP functioning. During this time the investment flow has stable growth, the program brings maximal profit and clients receive their interests regularly.

Descent period is a determining stage for further programs life. It is characterized by the fact that the users lose their interest to the project, the flow of new investments fall and the program ends its development. All false projects terminate their activity few days after they enter the descent period, they dont pay to their clients and disappear with no trace. Creators of trustworthy programs undertake measures trying to bring their projects out of the stagnation.

Once you analyze the HYIP actions during the descent period, you can make a conclusion about the perspectives of investing into the project. If the program has passed the crisis situation, continues to work and bring profits to its investors, you can be sure in the project: it is a serious business undertaking aimed at mutually beneficial cooperation. You can learn that the project enters its descent period by analyzing its advertising dynamics. As soon as the users interest starts decreasing, the project organizers develop a demonstrative agitation: they write letters to the programs participants, register in new catalogues, post messages on forums and guest books.

Of course, the investor shall do his/her best to find out the perspectives of the project before it reaches the crisis point. The successful end of the descent period may become a signal for those who wants to join the program at its new stage. What about those who plan to participate in the program from the very start? Those investors shall make a detailed analysis of the selected HYIP in the very beginning and invest their money only after they are sure of the program reliability.