Cody of Safe Money Invest submit a guest post the other day, A Modern Approach to HYIP: Hit n Run (I suggest you read his article before this one, as this post is pretty much my opinion on what he wrote). There is a lot in his post that is controversial and I don’t necessarily agree with, so I felt it necessary to present my opinions on the Hit & Run.

The strategy, where an investor deposits money in a program in the first cycle, in the first few days of the program, then withdraws their entire principal along with the interest they earned is commonly known as hitting-and-running. Essentially the hit-and-runner is getting a profit during the first investment cycle then never reinvesting.

Cody pictures the hit-and-runner in a negative connotation, as someone that is hurting the HYIP and causing it to go scam before “its time.” He is assuming, and expecting you all to agree with, the concept that every program in the HYIP industry is a ponzi-based scheme. I can say this because ONLY in a ponzi-based scheme is a Hit & Run detrimental. In a real program, a Hit & Run doesn’t do anything, because the program will still be paying out the same amount of money to everyone. So, for the purpose of this article I’m going to assume that every HYIP is a ponzi-scheme. Please note that this is not necessarily my opinion as I would never make an all-inclusive statement of fact such as “all HYIPs are ponzi-schemes.” There is no way for me to prove such a statement.

First, before anything else, I’m going to explain the dangers of using the Hit & Run investment strategy for anyone new to the HYIP industry who is for the first time being introduced to the concept and thinks it to be a flawless way to make money. If done correctly, the Hit & Run strategy can make an investor money, but at the same time a hit-and-runner can lose everything (perhaps even easier than if you were investing for a longer time period). Let me explain:

1. Quick Scams, or programs that open and never pay any investors will eventually make a hit-and-runner suffer loss. Essentially the Quick Scam is the HYIP admin’s version of a Hit & Run. Instead of the investor jumping in, making a quick profit and leaving, the HYIP admin is just taking investor money.
2. Occasionally you’ll see evidence of a HYIP that doesn’t pay Hit & Run investors, selectively paying only investors who reinvest into the program. More often you see programs set-up that limit the impact of hit-and-runners. Programs that don’t pay back principal or that pay principal back after a very long period.

There are more, but I think you understand that you can still lose money utilizing the Hit & Run strategy. Anyway, like I was saying Cody is presenting that a hit-and-runner is detrimental to the HYIP industry, causing programs to close prematurely. He states that if investors put trust in a program, reinvest and promote the program, the program will last longer and more people will profit.

I’m sorry Cody, but that advice sounds like you’re running a HYIP. First off, you should never trust anything in the HYIP industry. Everyone has a hidden agenda (I talk about mine quite a bit in the newsletter that will be sent out at the end of this month, you should subscribe if you want to read about it). Second, I’m against promoting HYIP programs; too many people who promote HYIPs paint a beautiful story about how much money they earn with HYIPs so their downlines invest and they reap the real reward through referral commissions. That’s why I removed all referral links here on HYIPBlogger.com, I don’t believe in taking your money.

I believe that Cody is hitting on one thing that is truth though. There are programs that, if given a chance, can make substantially more money for investors if people reinvest. Programs like Final Earn and Unite Trade were both short-term ponzi-based programs that ran for a significant amount of time and made some investors a significant amount of money. They weathered the hit-and-runners, investors saw the potential in the program, and people started reinvesting.

If there were no hit-and-runners would HYIPs as a whole last longer? Short-term programs would definitely benefit. With long-term programs it’s debatable. Ponzi-based long-term programs rely on promotion to stay alive, and usually turn scam before the first cycle is finished. Only programs that reach a higher level of success and draw in investors such as Cherry Shares and Oil Structure did, have any real value for the investor to consider reinvesting.

I’m under the belief that you should absolutely not trust HYIP admins or have any trust in their programs. HYIPs can close at any time, so to trust in them would be foolish. Everyone needs to research and find a strategy of investment that best works for them. Hit & Run is only one tool, a small piece of what could be a much larger investment strategy. It’s my opinion that there are some programs where the only people who ever have a chance of making money are people who Hit & Run. HYIP admins will blame the failure of the programs on hit-and-runners, but a properly prepared program will be able to withstand a number of Hit & Run investors, and grow to a point where investors reinvest and the program runs its course, eventually closing and probably scamming whatever investors still have money in it.

So, the question isn’t really if you should Hit & Run or not, the question is which programs should you Hit & Run, which programs do you invest in for a long-term, and which programs do you avoid like the plague? If you’re going to be successful in this industry, it’s my opinion you need to cast aside any noble intentions and trust in HYIPs and research programs, figure out which types of HYIPs you’re comfortable in investing, and learn from your mistakes. Don’t be greedy, get out when you’re ahead, and don’t let people suck you into their own personal agendas.