What Is EarnDollar About? A HYIP Scam? Read Before You Invest
What is EarnDollar? Should you trust EarnDollar and invest your money in this investment program? Read this EarnDollar review and find out why you should avoid this investment scam.
What is the EarnDollar?
Website address: earndollar.biz
Price: $10 (minimum)
Referral commission: 2% – 3% – 4% – 5%
Overall Rank: 0 out of 100
From the official site, it is mentioned that Earndollar.biz started its journey in 2016 with the prime objective of developing productive enterprises of the country through the provision of lease financing and subsequently diversified in other allied financial services.
Earndollar.biz is a private online investment company that has been legally registered in the United Kingdom in 2016. Earndollar.biz looks forward to greater participation in improving the financial status of every investor, therefore introducing all financial products under one roof to meet the investor’s financial needs.
I have done some research on this HYIP and I would like to highlight a few red flags in this post.
Read on to learn more about this EarnDollar scam.
Should You Trust EarnDollar?
You should not trust this investment company.
The EarnDollar is a high-yield investment program (HYIP). If you have read the definition of HYIP on Wikipedia, It is s a type of Ponzi scheme, an investment scam that promises unsustainably high returns on investments (ROI) by paying previous investors with the money invested by new investors.
The EarnDollar is a fake investment company. From the official website, one can notice it is an HYIP investment scam that aims to steal your hard earned money. Why? There are a few red flags I managed to pick up.
#Red Flag 1 – Zero Company Member Profiles
If you go to EarnDollar profile, you will not see any key members of the companies. It is almost impossible to know who are running the show.
#Red Flag 2 – New Site and Unknown Identity
EarnDollar is very new and looking at the date of registry, the website was registered in 2016-02-12 and expiring in a year time. If it is a legitimate investment company, why would they register for only for a year?
The registrant’s name shows up as “confidential”. I have tried to search for the owner’s name on the internet and nothing shows up. This is a clear warning that the scammer does not want to reveal his or her real identity to avoid detection.
#Red Flag 3 – Ponzi Scheme
EarnDollar offers offer referral commission program. It is a good way to make extra money. By inviting more people to their investment programs, you will instantly receive 3% ref commission from every deposit your referrals made.
For a real investment company, this would equal giving away the entire (if not more) profit margin. This is a typical trick from most of the HYIP on the market. They offer to reward “referral fees” to investors for bringing in additional members.
EarnDollar pays affiliates a 3% commission on funds invested by recruited affiliates in their unilevel team depending on the investment plans.
That’s how a Ponzi scheme is operated. They recruit new members to sustain the pyramid scheme. They need “new” money to generate “returns” for the older investors by acquiring new investors.
It is a fraudulent investment scheme where they pay returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
It is a pyramid scheme that typically collapses in the end because it requires exponential increases in participants to sustain the business model. That simply means the scheme cannot go on forever.
The EarnDollar probably still pays their investors for now as the program is still relatively new on the market. When there is insufficient investment fund from the new recruitment to the older investors, the entire structure will collapse.
#Red Flag 4 – Vague Investment Information
Obviously, there is a lack of details on how EarnDollar manage the money from the investors. EarnDollar tends to be vague about the strategies used in their program.
I tried to look for more information “About” EarnDollar, all I got is just a vague information. Furthermore, they are not backed by a real and verified trader. There is no proof and information at all on who are running behind the scene.
Given that EarnDollar is an Investment Service, it should be regulated by the Financial Conduct Authority (FCA). There is, however, no record of the company in the public register.
This is your hard earned money, please do not be afraid to ask questions. A genuine financial professional will usually be happy to explain in detail the investment program they are marketing. Unfortunately, EarnDollar fails to do so.
In an attempt to come up with a legitimate explanation of where EarnDollar’s 500% ROIs come from, the owner(s) are feeding affiliates all sorts of nonsense.
#Red Flag 5 – High, Unsustainable Yields
I have years of experience in investments. Historically, investments in most large corporate stocks return less than 10% per year. Usually, HYIP scams offer between 1 percent to 2 percent daily profits to its members.
The EarnDollar discloses their investment plans with no aim to hide its absurd and unsustainable returns. The provided calculator shows how it earns you a 700% ROI under their Plan IV. To me, it is a total nonsense.
The funny thing is the investment plan returns a perfectly steady positive income percentage regardless of any external variable such as price volatility. Don’t you think this sounds a little fishy?
The ROIs that they claim on the official page clearly indicate that the investment is actually a Ponzi scheme or a junk bond that may never increase in value and has a high rate of default.
I am not a fan of these HYIP programs. It is very rare that I recommend them because there are some things you need to know before you dive into this and throwing your hard earned money around.
Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. If your money is perfectly safe, you’ll most likely get a low return. High returns entail high risks, possibly including a total loss on the investments.
Fraudsters like EarnDollar spends a lot of time trying to convince people that extremely high returns are “guaranteed” or “can’t miss.” They try to plant an image in your head of what your life will be like when you are rich.
Don’t ever believe it.
Based on my observation, it is very clear that EarnDollar is an investment scam.
Why do people keep joining HYIPs knowing that they are Ponzi schemes?
All these Ponzi Schemes are aimed at people who want to get rich quick and do not want to take the tried & tested route of – hard work = success.
Most people want to make lots of money quickly and the legal options are often very limited (e.g. Lottery). When a product promises to give you exorbitant returns, people tend to believe it due to our greed.
However, most of the people end up losing their savings and hard-earned money.
I wrote an article on How to Invest Online Without Being Scammed. This should serve as a reference when you look for a legitimate investment company on the internet.
I don’t like the reliance on Ponzi scheme in order to make bad money. Instead, I do affiliate marketing (it’s different) and rely 100% on myself to build an income online. If you are interested in alternative ways to generate a real passive income online, you might want to consider running your own legitimate online business.
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When I carried out my initial investigation on Wealthy Affiliate, it was purely to see if the company was legit for a few friends of mine, however, I didn’t imagine that I was going to make much or ANY money with them when I first got started, but as it turns out – I did.
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