This program moved to CLOSED! Do not invest there!

The VIPInvest Club Investment Plans.

In our “First Thoughts” article about VIPInvest Club (VIC for short), we introduced their investment plans in the following way:

VIC offers a total of eight investment plans and all of them return your investment as part of your daily earnings.  Five of the plans run for 90 days while three of them run for 60 days.  The maximum gross daily return in both sets of plans is 3%.  A quick calculation tells me that the 90-day plans are more profitable than the 60-day plans.  However, it appears that all of the plans are well-thought-out with sensible net returns that could lead to long-term survival of the overall program.  We will provide more details on VIC when we make a thorough review their investment program a few days from now.  Please stand by…

Since the publication of the First Thoughts article, we published Part 1 of what we thought would be a two-part article reviewing this program.  This Part 1 article made a detailed analysis the VIC investment plans determining their breakeven points and average daily net interest rates.  Then we wrote, but did not get to publish, Part 2 of our review of this program in which we discussed the findings of Part 1, worked some numerical examples of earnings for sample plans in the VIC investment program, and, finally, pointed out the pros and cons of the program.

The reason that we didn’t publish Part 2 of the review is that VIC has now CANCELLED their group of five investment plans called the “Early Bird” plans and started an entirely NEW plan called the Trade Masters plan.  This is an amazing change, given that the program has only been online for a week or so!  It brings into question the ability of the program administrators to plan ahead — even in the short term.

So, EmilyNews is now faced with the situation of having written a review which, after only a week or so, is obsolete.  A new revised review is necessary.  So, out of respect for our readers, what follows is such a revised review of the VIC program.  This review will be briefer than is our normal custom.

Here is the website information on the VIC investment plans as they now stand:

60 Day “Safe and Easy” Plans

Daily Gross Return      Investment Limits
2%                               $50 – $250
2.5%                            $251 – $1,000
3.0%                            $1,001 – Unlimited

“Trade Masters” Plan

125% after 10 days
$25 – $100,000

Analysis of the VIPInvest Club Investment Plans.

When we analyze a company’s investment plans, we typically determine two items: breakeven point and average daily net interest (DNI).  Thankfully, the VIC investment plans are very easy to understand.  So, this job will be simple for us.  Let’s determine the breakeven points of the investment plans first.  This is very easy to do.  Looking at the 2%/day Safe and Easy Plan, we simply divide 100% by 2% to get that the plan will break even in 50 days.  If you do the same arithmetic for the other two Safe and Easy Plans, you would get the following results:

Daily Gross Return      Breakeven Point
2%                               50 days
2.5%                            40 days
3.0%                            34 days

In the Trade Masters Plan you don’t receive a penny back until the plan ends after 10 days.  So, this is when that plan breaks even.

The DNI of an investment plan is the total net interest that you receive from it averaged out over the length of the plan.  DNI might be the best way of comparing the profitability of one investment plan with another.  For the 2% Safe and Easy Plan that runs for 60 days, the total gross interest that you will receive is 120% (2 x 60).  Subtracting 100% from this because it includes your investment, you get a total net interest (total profit) of 20%.  Finally, averaging this out over the 60-day investment period, you get a DNI of 0.33% (20/60).  If you do the same arithmetic for the other two investment plans in this group, you will get the following results:

60 Day “safe and Easy” Plans

Daily Gross Return      DNI
2%                               0.33%
2.5%                            0.83%
3.0%                            1.33%

For the Trade Masters Plan, your net profit will be 25% in 10 days.  If you average that profit out over the length of the plan, you come up with a DNI of 2.5% (25/10).

Discussion.

When it comes to determining profitability and risk of an HYIP, the first thing that we do is take a serious look at the DNIs for the investment plans that it offers.  In the article in HYIP Insights #12, we suggested that programs offering investment plans having DNIs less than 1% would have a very good chance of long-term survival.  The first two of the Safe and Easy Plans are in that category and the third plan in that group is not very much above this recommended 1%.  So, the numbers suggest that these plans might enhance the ability of the program to survive in the long term.  However, while modest returns improve the likelihood of long-term survivability, they also mean lower profitability.  With a DNI of only 0.33%, the average weekly profit from the first plan in this Safe and Easy group will only be around 2.3%.  This is rather low for the HYIP industry.

For the Trade Masters Plan, we have a DNI of 2.5%.  The same HYIP Insights article suggests that programs offering investment plans having DNIs higher than 2% might have a poor chance of long-term survival.  So, on one hand, we have one group of investment plans with modest returns leading a high probability of long-term survivability of the overall program while, on the other, we have another plan that is relatively profitable but that might jeopardize the long-term survivability of the overall program.  However, it is important to remember that, since BOTH types of investment plans are in the same program, their effects really can’t be separated; the ENTIRE program will sink or swim.

We must also point out that, in the Trade Masters Plan, all of the investor’s funds are at risk until the plan ends and he receives his earnings.  In the Safe and Easy Plans, the investor is recovering his investment from day one.  This is good.  However, it will still take him a month or more to break even.  And, of course, he will not receive the full extent of his profit until the 60-day investment period is finished.

Conclusions.

VIPInvest Club offers a set of relatively long-term plans and a single short-term plan.  The long-term plans, called the Safe and Easy Plans, would appear to be low risk with relatively low profitability (by HYIP standards).  The short-term plan, called the Trade Masters Plan, is more profitable but with higher risk.  It is the classic HYIP dilemma.  Low risk and low profitability versus high risk and high profitability.  Finally, the potential investor in VIPInvest Club will want to remember that the administrators of this program made some radical changes to its investment plans.  This may or may not be a bad sign. Only the time will show.

I hope this information is helpful.

Review Corrections

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