Discussion.

Let’s begin by repeating the table we came up with after analyzing the Zonders investment plans in Part 1 of this review.  Here it is…

Plan                                         Total Profit      Calendar Days DNI

106% for 4 working days        6%                   5.44 = 6           1.10%
122% for 12 working days      22%                 16.32 = 17       1.35%
156% for 24 working days      56%                 32.64 = 33       1.72%
170% for 30 working days      70%                 40.80 = 41       1.72%
350% for 45 working days      250%               61.20 = 62       4.08%

Remember that the 106% and 350% plans pay you your earnings at the end of the plans while the other three plans return your earnings to you on a daily (working day) basis.  We’ll look at the 106% plan first.  Next, we’ll look at the three plans that return your interest on a daily basis.  And, finally, we’ll look at the 350% plan.

The 106% plan is very easy to understand as it pays you 6% profit and returns your investment at the end of four working days.  In terms of calendar days, this can be as long as six days.  So, if you invest \$100 in this plan, you will get \$106 back four to six days later.

For the next three plans that return your earnings on a daily basis, the average daily profit that you receive will either be 1.35% or 1.72%.  It’s very unusual for a program to offer two investment plans that are equally profitable as is the case with the 156% and 170% plans.  The question is: “Is one of these two equally profitable plans better than the other?”  This is a hard question.  If the program survives till an investment plan ends, it doesn’t make any difference at all.  However, if the investor has a concern about the survivability of the overall program, it is probably best to invest in the shorter term plan — the 156% plan — as your deposit will be at risk for only 24 days rather than 30.  Other factors being equal, this is probably the way to go.

It is important to note that with DNIs between 1% and 2%, these three investment plans are within the range that we suggested in HYIP Insights #12 which might favor long-term survivability of the overall program.  Interests that Zonders pay to investors in these plans are lucrative but not so high that the life of the overall program would appear to be unduly threatened.  Remember that an average daily profit of 1% is equivalent to 7% profit per week and 2% is equivalent to 14% per week.  Anything in this range is respectable.  Furthermore, since you are receiving earnings on a daily basis, the amount of your investment that is at risk is decreasing as the days go by.  This is a factor in favor of any investment plan that pays interest on a daily basis.  Of course, you must remember that you still won’t break even with any of these plans until they end and your principal is returned.

The 350% plan is in a class by itself for many reasons.  First of all, it does NOT pay interest on a daily basis.  So, the investor has to wait a full 62 calendar days before he will see any of his earnings and have his investment returned.  In the HYIP world, two months is a long time.  So, from the point of view of risk, this is a questionable plan.  And, if a plan is risky, that means the entire program is risky.  This investment plan also offers a very high rate of return that results in a DNI of around 4%.  While this makes it a very lucrative investment plan, this rate is double what we suggested in HYIP Insights #12 as the limit for a sustainable program.  Typically, HYIPs that offer high interest plans such as this also have a very high initial investment requirement.  This severely limits the number of participants in the plan and thereby decreases the risk to the overall program because the obligation of making high interest payments is greatly reduced.  Zonders has done the opposite and the minimum investment for this plan is LOWER than the previous two daily interest plans.  It seems as though Zonders is encouraging investors to utilize this high interest investment plan — and, in the process, placing the survival of the overall program at greater risk than would appear to be necessary.

Conclusions.

Zonders offers five investment plans.  All return a person’s investment at the end of the plan.  They all generate interest on working days only.  The lowest and highest interest plans pay your entire earnings at the conclusion of the plan while the three intermediate plans pay earnings daily (on working days).  Two of the intermediate plans are equally profitable which makes one wonder why both are offered.  It would appear to be wiser for the investor to utilize the shorter term plan to minimize risk.  The interest returns of all but the highest interest plan all appear to be high enough to be lucrative but low enough to not jeopardize the survivability of the overall program.  However, the highest interest plan, while being extremely lucrative (close to 30% average profit per week), might put a strain on the resources of the overall program.  The Zonders investment program has a number of unusual features and would appear to be aimed at the more adventuresome investor.

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