First of all I would like to point out one thing:
The term 'passive income' is most commonly misunderstood. During my time as an active infomarketer and distributor I have had to learn that this term was used in a meaning like 'others have to work for you' - the typical MLM shows and pyramid structures in selling.
Well, this is actually like putting the carriage in front of the horse because a real 'passive income' rather means that your money is working for you in a way that others are working with your money.
The real - and most certain classic - passive income is the investment in goods, services, institutions.
Typical of course stocks, funds, associate memberships etc.
"That some achieve great success, is proof to all that others can achieve it as well."
HYIP - a short term for High Yield Investment Program, is a program which basically offers the most profitable returns on investments by distributing high interest rates that are ranging between 5 - 250% a month.
HYIP's are using different investment strategies to generate high returns. They are involved in capital management, such as Forex trading, stock exchange, sports betting, metal trading etc. Other HYIPs act like a fundraiser to invest the whole fund into other HYIPs. There are also programs that are not investing at all and obviously may belong to the scammers.
High Yield Investment Programs carry their daily activites via the Internet. They typically accept investments of $10 or less while promising high returns.
E-gold is the easiest and the most effective system of international electronic settlements. It is optimal for a participation in high yield investment programs as it makes it possible to get the earned money instantly.
The suitability of online payment systems allowing HYIPs to operate globally and accept large numbers of small investments.
A bad side of the coin though:
Most of the High Yield Investment Programs do not survive for very long and indeed turn out to be scam. Scam HYIPs are called Ponzi schemes. A Ponzi scheme is an investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. This approach allows the scam to continue as long as new investors are being found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised).
Simply said - Ponzi is a pyramid investing system in which the last ones will pick up the tab !
Taking both - the negative and positive - aspects of High Yield Investments into consideration, the of course has to be:
If done right, High Yield Investments can be extremely profitable.
If you consider to invest in a HYIP you ought to do a diligent research first. You should also get familiar with the HYIP techniques and strategies to benefit from attractive returns on your investment and - eventually you don't want to put all your eggs in one basket !