Due Diligence
What is Due Diligence?
Due diligence is the process of investigating a potential investment program. During this process, one conducts inquiries for the purposes of obtaining sufficient and accurate disclosure of all material statements/information or documents which may influence the outcome of your investment. In a nutshell, it is a way of discovering everything about the program before you invest your money.
Part of a thorough due diligence process is the development of a questionnaire that the program administrator must answer, and a request for copies of documents that prove that the owners are who they say they are, that the venture is legitimate, and that they're doing real investment. The obscure and anonymous nature of the Internet makes it very difficult to conduct nature of effective and reliable due diligence. Nevertheless, Investing in HYIP to win, will require that we get as much due diligence information as possible. However, one has to keep in mind that online, things often time are not what they appear to be. Program owners can easily provide legitimate looking fake documents.
That is why, I believe that while it behooves each and everyone of us to learn to conduct our own due diligence, we should also research the due diligence done by others. In the world of HYIP, you can never have too much due diligence.
There are a few resources online where can review due diligence done by others, or get help in learning how to conduct your own due diligence processes.
Sensa Trust is one organization that has placed itself at the vanguard in due diligence. The following quote was taken from the website:
"Sensa Trust is a group of online investors spread throughout the world fighting for more reliable income from investment opportunities found online. With active investigators in 4 continents and the latest technological tools to our disposal, we investigate the information provided by program administrators to ensure that there is as claimed, a group working behind the website, in this world where anonymity is so easy."
Minimum Due Diligence Steps to Follow Before Investing In Any Program
* The first thing you should do is visit the website if there's one ( many private programs do not maintain a web presence)
* Check out the forum if there's one. Look for consistency. If the program claims to have launched 3 months ago, but they're no posts in the forum dated earlier than 2 weeks ago, that's a red flag.
* Make the rounds visiting HYIP forums to find out what others are saying about the program.
* Be objective in your assessment. Ignore the cheerleaders, and pay more attention to the posts where people are making informed and objective assessment about the program. Most programs pay in the beginning so, the "I got paid" posts in the forums don't mean much.
* Mistrust administrators who spend a lot of time in HYIP forums, being too friendly and accomodating. Most often, their only goal is to gain the trust of unsuspecting investors.
* Learn to spot the red flags, bogus claims and the little nuances that are indications of a program in trouble.
DUE DILIGENCE LINKS