Risk

Risk

As a first step, you should know that there is always a risk, no matter what company. The question is always how high is the risk and how high the probability of a system holding a few weeks or a few years. Moreover, I see it as almost impossible that a system will last forever. For the beginning, I would always recommend you one or more systems which are in a medium risk range but still have the theoretical potential to keep “eternal”. In my opinion, there is nothing wrong with the risk of a bigger profit as long as you are aware of the risk. I would not recommend this at the beginning. Also you should always point to the risk in case you pass a system to your partners.

So I summarize once again, every business on the Internet with which you deposit money is a risk and can result in a total loss. For this reason you should only use money which you can also handle to lose. Because you’ll never get around it sooner or later to lose money in this industry, the art of doing is to write more and more profits than losses.

Faktoren

In the following, I would like to give you an overview of the most likely scenarios which could mean the end of a system

1. Scam/Fraud

Behind the system there was never a real deal, the owner had planned the whole of the company and disappeared with all the money at a certain point, in which he meant that the peak of the maximum paid-up capital had been reached. This is usually the case with HYIP’s (look at your case to HYIP’s, because you will know exactly how you can recognize these types of systems). To avoid such a system you should always ensure that the project is based on a real business and the whole is not just a pure money game. How exactly you can recognize this can you later in the category “system choice”

2. Legality

If a company is behind a system and this is registered as a company in a country in which the activity of the company is not or only partly legal, it is logical that this will bring problems sooner or later. However, most of them think something wrong, and they believe that a company registered in Germany or the US, for example, is more secure, but the opposite is the case. In these countries the government can quickly draw a line , Even if the system is actually not at all illegal. The second fallacy is that any system which is legally registered as a company must also be a real and stable business. For this I can only tell you that in some countries it is really very easy to get a license for a company and just a lot of HYIPs can present such a company document.

3. External influences

Depending on the industry, there are movements in the industry where the company in which you are active has little or no influence. If we take for example the trading industry, which is very lucrative, then I think that it would be quite bad for a stock exchange crash for the whole industry and also for your deposit. Also, the course of cryptosis can, for example, unfavorably develop downward. You have no influence on these external influences, but you should know about it and keep the whole thing in the back of the head.

4. Hacker Attacks

It is not uncommon that there are large companies of the open hacker attacks. In the fewest cases, however, they can actually cause damage. Most of the time this happens in the background and we members hardly notice it. However, the site can not be available for some time or in the worst case money can be stolen from the accounts.

5. Accident

Hereby I mean two things. Firstly, the office or equipment needed to generate the profit can be damaged or destroyed by environmental influences or other accidents. (Mining pools would be an example here). The second point I would like to express in such a way, without a guide a system can not run properly, let’s assume, we have a relatively small company with few employees then it can become quite a problem if one or more of the executives their work For any reason.

6. Website

A bad website is in most cases not a reason for the end of a system, but I still think that this plays a role of the company’s career. If the site does not work properly, maintenance may occur where the page is not reachable, which is not a problem. However, if this is more common, it could become problematic, if the business model builds on new customers (for example: Revshares), because a non-functioning website will discourage new members. Also, a good website design is advantageous, but not necessary (I myself am in several systems, which have no website at all and still run successfully)

7. Unprofessionalism

Unprofessionalism is a factor which can be understood very extensively. Of course professionalism is an advantage in all areas. However, I would like to know that it is important to know the owner, to have seen him at least one time or another before the camera and to be able to assess his personality. Because I have seen in the past already executives of systems which have simply thrown the whole just because they have encountered problems which they could not personally cope. This is something that is rare, but there are some other reasons why transparency is very important.

8. Negativity & decreasing growth

These are two points which usually occur in combination and usually do not pose a problem for a real business. But if we look at systems which are always dependent on new customers / sales then the money will go out quickly as soon as the growth decreases. One reason for this can be negativity, which becomes widespread and therefore no new members will join. In contrast to other shops, the timing of systems of this kind always plays a role, but there are some other factors which I will discuss later.

This would now have to be the most common factors for the end of an online program. However, there are certainly other scenarios which I could not take into account at this point. Also, some of these factors are increasing in an industry and others are not. What I would like to say is that this is only indications, which you should have at least once heard. In addition, it is an advantage to know what could go wrong in a system, in order to find out the weak points before the start and to be able to estimate its risk in a realistic way.

Risk minimization

There are several ways to minimize your risk, but it is not enough to focus on one of the following methods. It is very important that you pay attention to each of these points equally to keep your risk as low as possible. However, the risk can never be completely ignored.

Investigation

The research or research is, in principle, the principle you should apply before every project. In doing so, it is important to go through all the risk sources as I have described them before and to assess the amount and probability of the risk. How exactly you should proceed but you will find later in the category “system choice”

Diversification

The second enormously important point is that his risk has always spread to several systems. I think the reason for this is logical, because you know now with every passive online system, the risk of the total loss, and as soon as that arrives and you have all your income only from this one system, you stand from today to tomorrow again At zero. When dividing the risk, however, there is a lot to consider, it makes no sense to distribute its capital in the amount of € 500 to 10 systems, because you will certainly not be successful.

My recommendation: First look for 1 to a maximum of 3 relatively stable businesses (depending on how much capital you have available), focus on them only and build them up for a few months until you remove each individual amount can. Begin to build up with the profit of your first systems. The whole thing is a preliminary process, importantly, it is only that before you think about a new system, each system is built up until it gets a good profit for you. Of course, you should not exaggerate it at the same time, as for almost everything here is a healthy mediocre. For me personally, in the past +/- 3 months have proven to be a good time for building a relatively stable project. For the beginning, however, it is important to find a system in which the relation of stability to profit is very good, but you will find more in the next traning.

Strategy & Planning

If you do not have a plan then you will most likely end in chaos and failure. What I have explained to you before risk sharing is part of the strategy. To build a good strategy, you should first consider how much capital you have at your disposal, what you want to achieve and in which period. If you have already selected one or more systems, use a specific target from which you will take your profit.

I’ll give you a brief example, say you start with 1000 € and your goal is 250 € weekly profit then you may have to build up for a few weeks or months your account to come to this point, how long that then Exactly takes, of course, the percentage profit, which is different for each system. Always remember that the goal is to make profit or at least not lose anything. So do not build up your account too long, but see that you get your insert relatively quickly again after you have reached this Breakeven point, you can either start to write green numbers or continue to build your account, but the good is now You have no risk in principle. Of course there are also exceptions, if you start with a very small amount, then you will have to build up your account for a longer time and with a very high starting amount you will be able to remove your profit immediately. But it always depends on the stability of a system to what extent it makes sense to build up your account for a longer time, and it depends entirely on your available capital and your personal goal.

Avoid emotions

Emotions are something you should definitely avoid in this industry. I do not mean ruthlessly risky business to recommend further. I mean much more about your attitude to your paid money. If you can not sleep at night because you are afraid to lose your money then you can be sure that something is wrong. Do not put your money anywhere, but you do not feel comfortable and listen to your gut feeling. Also, you should not fall into enthusiasm as soon as a system works for you, that means you should consider a goal as described above and then really stick to your profit from the planned time to take out again.

In addition, we often get the impression we could miss something if we do not go now. I can only tell you, if you are at the point you think you can miss something, if you do not join a certain business, then you have already missed the best time.

The right timing

The timing is a factor which only plays a role in 2 cases. When it comes to avoiding risk, the timing is only important at HYIP’s and Revshare’s since the systems are based on new customers / members. It is to be distinguished that Revshares can still be a good time after several months, as they are in a way a real business, in contrast to HYIP’s. In Revshares, however, there are some other factors which I will explain to you in a different category. HYIP’s are pure money games and I would advise you a start (if at all) only at the very beginning.

The second reason why timing might play a role is when you plan to share the system with others. This is not really a factor which has to do with the risk, nevertheless I thought I mention the time at this point. Because if you have a stable system that has been on the market for a long time (several months / years) and has already reached your target group, it is quite logical that you can reach more potential customers with a new system Fewer people have already heard of it. Nevertheless, I would never put the timing on the stability, so always look at the first thing, if the system is really stable before you join every new trend just because it is something new.

Email Newsletter

We encourage you to subscribe to our newsletter to stay up-to-date.
You will then receive current news by email, which may interest you.
The following are examples:

– Online-Marketing-News about companies

– Important tips & new projects