In our “First Thoughts” article about Jazzle Games, we said a few words about the company and also introduced its five investment plans. In that article we promised you a detailed analysis of the investment plans and that’s what we’ll do now. In this review, I’m going to be a bit more organized than I’ve been in the past. You will see what I mean when you read what follows. This is the engineer in me. Please let us know if you feel this is an improvement or not! Let’s get started…
The Jazzle Games Investment Plans.
As I’ve already indicated, Jazzle Games offers five investment plans. Following is the information that is given about them in the website:
107% after 7 days
$10 – $100
3.6% daily for 50 days
$20 – $5,000
1.8% daily for 40 days
$1,000 – $10,000
2% daily for 77 days
$3,000 – $30,000
2.2% daily for 70 days
$10,000 – $50,000
Profitability of the Investment Plans.
In discussing profitability of an investment plan, we use daily net interest (DNI) as the means of putting numbers on this. As we have explained many times in EmilyNews, DNI is the average daily net interest (profit) that you would receive from an investment plan if you distributed the total profit evenly over the term of the investment. For example, if an investment plan pays you all your profit at the end of the plan (Like Plan #1 above), you average it out over the length of the investment plan to get the DNI.
Let’s do this for Plan #1 now. The plan pays you a total GROSS interest of 107% at the end of the investment plan. Since this includes your investment, you have to subtract 100% from this to get a total NET interest of 7%. Dividing this by the 7-day length of the plan, you get a daily NET interest or DNI of 1%.
Plan #2 pays you 3.6% daily for 50 days. So, the total GROSS interest for that period is 180% (3.6 x 50). Subtracting 100% from this since it includes your investment, you get a total NET interest of 80%. Finally, dividing this by the 50-day length of the plan, you get a DNI of 1.6% (80/50).
Plans #3, #4, and #5 are similar. Let’s look at Plan #3. This plan pays you 1.8% daily for 40 days and returns your investment to you at the end of the plan. So, since your investment is returned, and assuming that the program survives the full length of the investment plan, your daily interest earnings are your net profit — or DNI. So, the DNI for this plan is 1.8%. This would work exactly the same way for Plans #4 and #5.
So, for the five plans, we have the following DNIs:
Plan #1 1.0%
Plan #2 1.6%
Plan #3 1.8%
Plan #4 2.0%
Plan #5 2.2%
So, in-so-far-as profitability is concerned, there is a very orderly increase as you go through the Jazzle Games investment plans. In fact, Plans #4 and #5 are TWICE as profitable as Plan #1. Of course, there is more than just profitability to be considered before we can make a final evaluation of the investment plans. One of the additional factors that we should be thinking about is how long it will take each program to break even…
Break Even Points of the Investment Plans.
Plan #1 is easy. It’s a short-term investment plan only running for seven days and, at the end of the plan, you receive your principal plus earnings. So, of course, that’s when you break even.
In Plan #2, you receive 3.6% interest per day. So, dividing 100% by this, you come up with 28 days as the breakeven point.
In Plan #3, you receive 1.8% interest per day. Dividing 100% by this, you come up with 56 days to break even. However, this plan only runs for 40 days. So, you won’t break even until the plan ends, and your principal is returned.
In Plan #4 you receive 2% per day and the program will break even in exactly 50 days. This is before the termination of the program which will occur after 77 days.
Finally, for Plan #5, you will break even in 46 days, which is again less than the 70-day length of the program.
Here are these results for breakeven points of the investment plans in summary form:
Plan #1 7 days
Plan #2 28 days
Plan #3 40 days
Plan #4 50 days
Plan #5 46 days
So, for Plans #1 and #3, you have to wait till the end of the plan in order to break even. For the other three plans, you will break even before the plan ends.
OK, we have a lot of information here. A lot of numbers. But, this should always be your first step in analyzing an HYIP’s different investment plans. If you don’t have this data in front of you, you might simply be investing on the basis of your emotions or you might even be swayed by a sales pitch that a website might have hit you with. Always think rationally. And, also remember that most, if not all, HYIPs are games. So, even with the most rational analysis of an HYIP’s investment plans, anything can still happen — and it often does. But, it never hurts to make a careful analysis of an investment program. It might save you from making a very foolish investment decision.
With that as an introduction, and warning, let’s begin. Perhaps the first thing we might want to do is see if there are any investment plans that simply don’t make sense. In the case of Jazzle Games, Plan #5 might be in this category. With a minimum investment of $10,000, it would not seem wise for a person to invest this much money with an online investment program. With all due respect to Jazzle Games, there simply isn’t enough information about the company on the website to merit this type of financial commitment to the program. So, I would discount this investment plan. I think that most investors will agree with this and I suspect that few, if any, investors will utilize this program — which leaves us with four investment plans with DNIs ranging from 1% to 2%.
In HYIP Insights #12 we published an article which suggested that programs offering investment plans with DNIs between 1% and 2% are borderline cases in-so-far-as survivability is concerned. On one hand, the DNIs are not low enough that the programs might have a high chance of surviving while, on the other hand, they are not so high that it would be unlikely that programs would not be able to pay scheduled earnings to investors. So, it’s really anyone’s guess as to how well this program will survive in the long term. The high initial investment for Plan #5 having the highest DNI is actually GOOD for the survivability of the program as few if any people will utilize it and this will help to minimize the program’s obligations to pay high interest returns.
Next, let’s take a closer look at Plans #3 and #4. Although not as high as Plan #5, these plans also have fairly high minimum investments with Plan #3 having $1,000 and Plan #4 having $3,000. So, the investor would want to think long and hard before sinking his hard-earned cash into one of these plans. The breakeven points for these plans are also fairly long with Plan #3 coming in at 40 days (the end of the plan) and Plan #4 coming in at 50 days out of the total plan length of 77 days. For Plan #4 this means that between days 50 and 77 you are earning “pure” profit. Of course, in both these plans you receive your investment back when they end. This represents a significant risk as your investment is tied up for the entire term of the investment plan. So, while these two plans offer the highest interests of the plans that we are considering (we are discounting Plan #5), they come with a degree of risk.
Next, we come to Plan #2. This is the only plan that returns your principal as part of your earnings. The plan is 50 days long and you break even in 28 days. Since your investment is returned with your earnings, you are free and clear after 28; unlike Plans #3 and #4, you do not have to wait till the plan ends in order to recover your investment. Also, the minimum investment for this plan is very affordable at $20; anyone can utilize this plan. Although the DNI of this program, at 1.6%, is less than the DNIs of Plans #3 and #4, at 1.8% and 2.0%, it has distinct advantages. You may recall that in the article that appeared in HYIP Insights #***, we explained that investment plans, such as this, which return your principal as part of your earnings are superior to investment plans that return it at the end of the plan.
Finally, we have Plan #1 which makes you a one-time payment of 107% after the seven-day term of the plan. With a DNI of 1%, this plan is significantly less profitable than all the other Jazzle Games investment plans. The advantage of it might be that your funds are only tied up for one week’s time. This plan has the lowest initial investment which is only $10.
This is the hard part, as which plan to invest in or, maybe, not to invest at all, can depend a lot on the personality of the investor. Some of us like to take a bit of risk in hopes of making a larger return while others will settle for more modest returns with lesser risk. Perhaps a strong point of Jazzle Games is that it offers a range of investment programs that appeal to a very wide variety of investors.
Starting with the more conservative investor who doesn’t want to take a large risk, he might find Plan #1 to be the most attractive. It pays you 107% after one week. Seven percent profit in one week really isn’t too bad. For example, if you went for broke and invested $1,000 in this plan, after one week, you would earn $70 net profit. And, by the way, don’t worry about the maximum investment limit in Plan #1. You can make as many deposits as you want. The really nervous investor might simply want to invest in Plan #1 ONE TIME and call it quits. He, therefore, only worries about his investment for a single week.
On the other side of the spectrum, the more adventuresome investor might choose Plan #3 or Plan #4 as the return is up to TWICE that of Plan #1. However, both these plans require you to wait till the end of the investment term to get your investment back and it will take you 40 or 50 days to break even. That’s a lot of nail-biting. These plans also have the deterrent that their minimum investment is quite significant — $1,000 or $3,000.
The middle road might be Plan #2. This plan has many desirable features. First, the minimum investment is only $20. And, the maximum is $5,000 which should be high enough for anyone. However, as I indicated already for Plan #1, you can always invest over the stated maximum investment amount by making multiple investments. The return for this plan is decent with a DNI of 1.6% — compared to 1.8% and 2% of Plans #3 and #4. Most important, the plan breaks even in 28 days out of the total of 50 for the entire plan. After that, you are making “pure” profit. Perhaps, most important, from day #1 you are recovering your investment at a fairly healthy pace, 3.6%, which is why you break even in only 28 days. To look at it another way, you will recover HALF of your investment in 14 days or two weeks. In the way of a quick example, suppose that I invest my $1,000 in this plan. By the end of the 50-day term, I will receive $1,800 in earnings. Subtracting the $1,000 investment, the net profit would be $800. Extremely good for less than two months’ time.
So, which program is best??? I would vote for Plan #2 as the risk is moderate while the return is quite respectable. However, this is MY opinion and, as I indicated at first, your temperament is what will determine which, if any, of these investment plans you might plan to utilize.
In closing, I hope that you liked this style of presentation. I have tried to break up the analysis into bite-sized categories rather than have a single narrative that goes on and on and on. To keep the length of the review under control, I am going to omit discussion of affiliate programs, contact methods, etc. — the material that I usually cover in a section entitled “Other Features of the Program.” It is easy for a person to find this information out on a website. My feeling is that the two most important things for an investor to know about an HYIP is the background of the company he will be investing in and how its investment plans work. We discussed this idea in some detail in HYIP Insights #18. In the future, unless there is serious objection against it, I will make comments about the company (and its “Legend.” See HYIP Insights #6 for more information about that) in the “First Thoughts” article about a program. Then, the review will be devoted to an analysis of the program’s investment plan. This is actually what I have done for Jazzle Games.
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