Diversifying Risk With High Yield Investments

I have just been reading about how many people thought they were diversifying by investing in 8 to 10 different high yield investment programs, the idea is that this would be less risky and if they lost one they would have all the others still working.

Several people even thought about the payment processors and only used Stormpay for half of their sites, looking for Autosurfs that would take other payment processors for the other half.

The problem that none of them seem to think about, and it never occurred to me either, was that if a program was using Stormpay for even 25 or 30 percent of their business that would be enough to put them under if they lost even that part of their business.

So what happened is these people ended up losing all the programs they were in anyway.

Now it looks like you needed to be in a program that does not use Stormpay at all.

Some people are saying it looks like the US government might start looking into these businesses since pyramid schemes are illegal in the US.  In that case you would need to be invested in some that were not located in the US.

There are a lot of things to keep in mind with trying to figure out how to do this with the least amount of risk, these are just a few of the things you need to keep track of.

I still think it will be interesting to see who survives this.