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From The Long Term To Included Interest

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#1 Colaro


    PHF Co-Admin

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Posted 19 April 2014 - 05:01 AM

Hello everyone,

Lately I have noticed that people start to avoid long term projects and many prefer middle term projects where principal is included. What is different today and why more and more people choose them instead of long term projects? Find out more in the article.

Lets get some things clear - in this article I'm not talking about after-one-day projects and personally I'm not admirer of them, but there always will be people who will play them because they are made for gamblers and we know that we have a lot gamblers in our industry. Here I'm talking about programs what pays for example 5% for 25 days or 8% for 15 days.

Historically and today the best projects is long term projects what offers low interest rate and many of them are able to run for a year or even two years. Yes, the crisis of Liberty Reserve brought some corrections previous year, but there is always such projects around and personally prefer them. Thing what is different today - there is not that much admins who know how to play long term games, today most admins just waste all the money on advertisements on the first days when the program is online, admins do not know how to grow program gradually. I'm not talking about everyone, but we see countless examples like that around daily.

Yes, projects with included interest payments have been around all the time, but lately they becomed really popular. I think the point when programs with included interest started to become popular is the moment when Leancy in this year showed that it is possible to pay 3% till 5% daily for more then two months without any problems. Countless admins noticed this success and started to copypaste, but the question remains - is this good or not?

Why people like such investment plans?
People today are more careful with the money then ever before, no one wants to put money in hands of some admin what is anonymous. Everyone prefer to play safe and do not throw money around like it used to be before worldwide economical crisis. With such plans people just feel safer because with " relatively high" interest they reach break-even* faster.

It is a win-win solution.
It is good solution for investors, because as I said previously members can receive principal back faster and if program goes south then part of what you could loose is smaller then with "principle back" programs. For admins it is winning solution because there is no that painful moment when they need to pay principle back what usually kills countless programs.

Interest is not that high as it seems from the first sight!
I will bring here two real programs and two investment plans where you can invest for example $100.

Popular long term project Eblone, first investment plan offers you 1.3% daily for 60 business days with principle back in the end of the term. Basically there is nothing to calculate because program pays 1.3% daily and that is what you receive.

Popular middle term project GramStock pays you 8% daily for 15 business days. Here starts the tricky part; we see that program pays 8% daily - huge amount isn't it? Before you say if it is huge or not lets calculate, so for example you invest $100 and you get paid $8 for 15 business days. $8 multiplied by 15 is $120. $120 is amount what you get back when your investment plan is totally expired. $20 is your profit, but we must divide it by 15 to know how much interest actually was added daily, so 20 / 15 = 1.33%. For many people 8% daily would seem much, but if you take calculator in hands we see that actual daily interest is just 1.33% what is just 0.03% more then Eblone offers. Always remember to calculate how much you actually earn with short term program.

In the end I want to say that I do not encourage people to drop long term projects. No - they have always been relatively the safest projects around and they will be relatively the safest also in future. Here I was talking that people do not want to risk that much as they used to do and that is why many start to prefer middle term programs where everyone can get principle back relatively fast. I do not think that this will become a trend to make only such programs, because overproduction usually kills the "product" and this is just some trend right now. After some time there will be new trends and this is just situation of market today.


*Break-even (or break even) is the point of balance between making either a profit or a loss.

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