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Muslims Engagement In Multi Level Marketing; Halal Or Haram? - Islam for Muslims - Nairaland

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Muslims Engagement In Multi Level Marketing; Halal Or Haram? by amodu(m): 2:45am On Jul 23, 2016
Salam Alaykum Warahmatullah Wabarakatuhu

Actually, I am not a fan of MLM and I do doubt the authenticity.

I was introduced and to some extent convincingly canvassed recently to a certain MLM. Though by another religious follower.

Before venturing into such, I realised it is pertinent to enquire the stand of Islam as to if it is lawful or unlawful.

Hence, my decision to bring this here for the contributions of my versed brothers and sisters in the deen.

Jazakumullahu Khairan.
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by amodu(m): 2:10pm On Jul 23, 2016
waiting for your contributions...
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Feanah(f): 5:00am On Jul 24, 2016
I think you should direct this question to someone very knowledgeable-someone in your community;or even online - islamqa.com or Sheikh Assim Alhakeem on Twitter.He answers questions,and I think he's one of the best scholars we have now.
If you've access to Hudatv, you can ask them on their live show - AskHuda.

2 Likes

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by amodu(m): 9:22am On Jul 24, 2016
Feanah:
I think you should direct this question to someone very knowledgeable-someone in your community;or even online - islamqa.com or Sheikh Assim Alhakeem on Twitter.He answers questions,and I think he's one of the best scholars we have now.
If you've access to Hudatv, you can ask them on their live show - AskHuda.

I'm grateful, I will try ad do that.
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Feanah(f): 4:15am On Jul 25, 2016
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Nobody: 6:28am On Jul 25, 2016
amodu:
Salam Alaykum Warahmatullah Wabarakatuhu

Actually, I am not a fan of MLM and I do doubt the authenticity.

I was introduced and to some extent convincingly canvassed recently to a certain MLM. Though by another religious follower.

Before venturing into such, I realised it is pertinent to enquire the stand of Islam as to if it is lawful or unlawful.

Hence, my decision to bring this here for the contributions of my versed brothers and sisters in the deen.

Jazakumullahu Khairan.


Brother, can you tell us how this company works? It will make it easier for us to reply...

1 Like

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by amodu(m): 11:30am On Jul 25, 2016
lexiconkabir:


Brother, can you tell us how this company works? It will make it easier for us to reply...

Well, it requires a registration fee of #6,600 after which you will have to canvass people to join while you register them. Certain amounts are due to you for anyone you registered and their is a progression from one level to the other which will also gives one certain amounts too couple with phone, Laptop, car etc at various levels.
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Nobody: 12:49pm On Jul 25, 2016
amodu:


Well, it requires a registration fee of #6,600 after which you will have to canvass people to join while you register them. Certain amounts are due to you for anyone you registered and their is a progression from one level to the other which will also gives one certain amounts too couple with phone, Laptop, car etc at various levels.


Then this is "pyramid scheme" and its gambling, the reason why it is gambling is that you have to pay a joining fee in the hope of being able to attract customers and get commission, which may or may not happen, hence this is gambling, and it is known that gambling is haraam according to the sharee'ah.

Many scholars has ruled this "pyramid scheme" as haraam.....

And Allaah knows best.

17 Likes

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by eluquenson(m): 12:52pm On Jul 29, 2016
Ok
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by hustler86(m): 12:55pm On Jul 29, 2016
السلام عليكم ورحمة الله وبركاته
Islam forbades secret business dealings, and in this instance, you invest your money in what For what All you only get is the gain for spreading the news , most at times this kind of dealings always end up being fraud. Allah (Subhanau Wata'ala) Knows best.

5 Likes

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by actright2(m): 12:56pm On Jul 29, 2016
Wa 'alaykum Salaam Wa Rahmatullahi Wa Baarakaatuh;
All MLM otherwise known as Pyramid Schemes are Haraam based on so many reasons.
You may follow the link below to get a brief details about the rulings.
https://islamqa.info/en/42579

1 Like

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by babz510(m): 2:31pm On Jul 29, 2016
There are other MLM programs... D 1 Yu Talkin abt Is haraam ..MLM without a product is nt Ok ...you can try those that has products to sell Like Kedi

1 Like

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by lekanwj(m): 3:15pm On Jul 29, 2016
The concept of MLM also call direct marketing or referral marketing cannot be harram if it involves products. This is the way it works:
Product from factory/manufacturers
| |
Advertisement
| |
Wholesalers
| |
Retailers
| |
Consumers
It is a known fact that over 60% of the cost of any item is in the distribution and adverts. Thus companies that adopt MLM marketing model pays between 40 to 60 % of the cost of their products to consumers/ marketers who refer others to patronise their products. They don't do adverts and they sell directly to consumers.
If you want to engage in MLM look for a company that has varieties of home consumables and not just one or two products. They are easier to market

2 Likes

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by yusufbida(m): 3:23pm On Jul 29, 2016
babz510:
There are other MLM programs... D 1 Yu Talkin abt Is haraam ..MLM without a product is nt Ok ...you can try those that has products to sell Like Kedi

MLM such as Kedihealthcare is Halal bcus it involves buying and selling of product Unlike D MLM you are saying wch has no product to sell.
Am a suscussful MLM in kedi bizness if you nid bizness advice you can call me on ds noba 08135462457
Allahu Allam
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by AbuTwins: 4:32pm On Jul 29, 2016
....IT IS HARAM.... DONT DO IT...

1 – It involves riba of two types, riba al-fadl (involving exchange of goods of the same type but of different quantity) and riba al-nasi’ah (involving deferred payment of a larger amount than would be paid if it were paid immediately). The participant pays a small amount of money in order to gain a lot of money, in other words he pays cash for cash of a different amount and with deferred payment. This is the kind of riba that is forbidden according to the texts and to scholarly consensus. The product which the company sells to the agent is simply a screen for this transaction; it is not what the participant is seeking and it makes no difference to the ruling.

2 – It is a kind of gharar (ambiguous transaction) that is forbidden in sharee’ah, because the participant does not know whether he will be successful in finding the number of purchasers (participants) required or not. No matter how long pyramid or network marketing lasts, it must inevitably reach an end, and when a person joins the pyramid he does not know whether he will be in a higher level and thus make a profit, or in the lower levels and thus make a loss. The fact of the matter is that most of the members of the pyramid lose out, except for the few at the top. So what usually happens is loss, which is the case of all ambiguous transactions. One of two things may happen, and it is usually the one that is most feared. The Prophet (peace and blessings of Allaah be upon him) forbade ambiguous transactions, as was narrated by Muslim in his Saheeh.

3 – These transactions involve consuming people’s wealth unlawfully, because these contracts benefit no one but the companies and some participants whom the company encourages with the aim of tricking others. This is what is forbidden in the Qur’aan, where Allaah says (interpretation of the meaning):

“O you who believe! Eat not up your property among yourselves unjustly”

[al-Nisa’ 4:29]

4 – This transaction involves cheating, deceiving and tricking people, by showing the product as if that is the purpose of this transaction, when that is not the case, and by enticing them with the idea of large commission which people do not usually earn. This is the kind of deceit that is forbidden in sharee’ah. The Prophet (peace and blessings of Allaah be upon him) said: “Whoever deceives us is not one of us.” Narrated by Muslim in his Saheeh. And the Prophet (peace and blessings of Allaah be upon him) said: “The two parties to a transaction have the choice, so long as they have not parted. If they are sincere and open in their dealings, the transaction will be blessed for them, but if they lie and conceal anything, the blessing of their transaction will be erased.” Agreed upon.

With regard to the view that this transaction is a kind of brokerage, this is not true. Brokerage is a transaction whereby the broker receives payment in return for selling the product, whereas in network marketing the participant pays a fee in order to market the product. Brokerage means marketing the product in a real sense, unlike network marketing where the real aim is to market the transaction, not the product, so the participant markets to others who will market to others who will market to others and so on, unlike brokerage in which the broker markets the product to those who really want the product. The difference between the two is quite clear.

With regard to the view that the transaction is a kind of gift, this is also not true. Even if we accept that, not every gift is permissible according to sharee’ah. A gift given in return for a loan is riba. Hence ‘Abd-Allaah ibn Salaam said to Abu Burdah (may Allaah be pleased with them both): “You are in a land where riba is widespread among them. If you have some right over a man and he gives you a load of straw or a load of barley or a load of fodder, this is riba.” Narrated by al-Bukhaari in his Saheeh.

Gifts are subject to the rulings on the reason for which they are given. Hence the Prophet (peace and blessings of Allaah be upon him) said, concerning the zakaat-collector who came and said: “This is for you and this is what was given to me as a gift”: “Why don’t you sit in the house of your father and mother and see whether you are given any gifts or not?” Agreed upon.

These commissions are only paid for the purpose of joining the network marketing scheme, no matter what names are given to them, whether they are called gifts or anything else. That does not change their nature or the ruling on them in the slightest.

It is worth mentioning that there are companies that have appeared in the market which follow the practices of network marketing or pyramid marketing, such as “Smartest Way”, “Gold Quest” and “Seven Diamonds”. The ruling on these companies is no different from the ruling on the companies mentioned above, even though the products they offer may vary.

And Allaah is the Source of strength. May Allaah send blessings and peace upon our Prophet Muhammad and his family and companions.
Standing Committee for Academic Research and Issuing Fatwas. Fatwa no. 22935, dated 14/3/1425 AH.

9 Likes

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Eldahrix(m): 6:11pm On Jul 29, 2016
"*Buffalos kill 7 people every year.*
*Lions kill 500 people every year.*
*Hippos kill 800 people every year.*
*Spiders kill 5000 people every year.*
*Scorpions kill 7000 people every year.*
*Snakes kill 10000 people every year.*
*And then, surprisingly,*
*Mosquitoes kill 2.7 million people every year. Yes, the smallest are the deadliest!*
*Small 'sins', hardly noticed by many, are the most deadly to your spiritual life.*
*Avoid excuses for not praying and allotting few moments of your day to your Creator.*
*Sins of omission are just as deadly as sins of commission.*
*Gossiping and small lies, are committed more frequently and are deadly.*
*Successful people have two things on their lips, "Smile and silence".*
*Smile can solve problems, while*
*Silence can avoid problems.*
*Sugar and salt may be mixed together*
*but ants reject the salt and carry away only the sugar.*
*Select the right people in life and make your life better and sweeter.*
*Remember, trees change their leaves, not their roots.so if you fail change your method but not your principles
*You will never reach your destination if you stop and throw stones at every dog that barks.*
*Haters will see you walking on water and say it's because you can't swim.*"
*Even if you dance on water, Your enemies will accuse you of raising dust.*
*Make it your ambition to lead a quiet life, to mind your own business and to work with your own hands.*
*Remember Don’t ever wrestle with a pig. You’ll both get dirty, but the pig will enjoy it.*
*BE WISE!* "

3 Likes 1 Share

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by babz510(m): 7:14pm On Jul 29, 2016
yusufbida:


MLM such as Kedihealthcare is Halal bcus it involves buying and selling of product Unlike D MLM you are saying wch has no product to sell.
Am a suscussful MLM in kedi bizness if you nid bizness advice you can call me on ds noba 08135462457
Allahu Allam
We're saying the same thing
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by horpeelo(m): 12:02am On Jul 30, 2016
since there is agreement between the two parties.So there is no eating of another's person property unjustly


allahu alam
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by mamawin(f): 12:10am On Jul 30, 2016
Eldahrix:
"*Buffalos kill 7 people every year.*
*Lions kill 500 people every year.*
*Hippos kill 800 people every year.*
*Spiders kill 5000 people every year.*
*Scorpions kill 7000 people every year.*
*Snakes kill 10000 people every year.*
*And then, surprisingly,*
*Mosquitoes kill 2.7 million people every year. Yes, the smallest are the deadliest!*
*Small 'sins', hardly noticed by many, are the most deadly to your spiritual life.*
*Avoid excuses for not praying and allotting few moments of your day to your Creator.*
*Sins of omission are just as deadly as sins of commission.*
*Gossiping and small lies, are committed more frequently and are deadly.*
*Successful people have two things on their lips, "Smile and silence".*
*Smile can solve problems, while*
*Silence can avoid problems.*
*Sugar and salt may be mixed together*
*but ants reject the salt and carry away only the sugar.*
*Select the right people in life and make your life better and sweeter.*
*Remember, trees change their leaves, not their roots.so if you fail change your method but not your principles
*You will never reach your destination if you stop and throw stones at every dog that barks.*
*Haters will see you walking on water and say it's because you can't swim.*"
*Even if you dance on water, Your enemies will accuse you of raising dust.*
*Make it your ambition to lead a quiet life, to mind your own business and to work with your own hands.*
*Remember Don’t ever wrestle with a pig. You’ll both get dirty, but the pig will enjoy it.*
*BE WISE!* "
Wow! thank you. Jazakalahu khairan
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by Mushood: 9:05am On Jul 30, 2016
amodu:
Salam Alaykum Warahmatullah Wabarakatuhu

Actually, I am not a fan of MLM and I do doubt the authenticity.

I was introduced and to some extent convincingly canvassed recently to a certain MLM. Though by another religious follower.

Before venturing into such, I realised it is pertinent to enquire the stand of Islam as to if it is lawful or unlawful.

Hence, my decision to bring this here for the contributions of my versed brothers and sisters in the deen.

Jazakumullahu Khairan.


Bro, I will advice u not to go into it at all if u haven't, I was once a victim and I remember I invited u den but u weren't interested. I ended up forsook my registration fee of #4k wen I got tired of networking pple. As d scholars before had said, it's a deceit which only help the company to grow and they believe dat at a point in time, u will get tired and ur money has gone if u ever stop networking more pple. It is haraam

1 Like

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by AbuTwins: 1:03pm On Jul 30, 2016
ITS BETTER TO KEEP SILENT IF WE DON'T KNOW. ITS A GREAT SIN TO MAKE HALAL WHAT ALLAH HAS MADE HARAM. BETTER STILL ITS BETTER TO LEAVE WHATEVER IS DOUBTFUL. MAY ALLAH GRANT US A BETTER SUSTENANCE.

1 Like

Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by olayinkajnr(m): 5:21pm On Jul 30, 2016
AbuTwins:
ITS BETTER TO KEEP SILENT IF WE DON'T KNOW. ITS A GREAT SIN TO MAKE HALAL WHAT ALLAH HAS MADE HARAM. BETTER STILL ITS BETTER TO LEAVE WHATEVER IS DOUBTFUL. MAY ALLAH GRANT US A BETTER SUSTENANCE.

The best advice so far...
Re: Muslims Engagement In Multi Level Marketing; Halal Or Haram? by bizpreneur(m): 7:58am On Sep 27, 2017
Hw abt this response na? = Fatwa No : 332797 *Buying products from multi-level marketing network/Network Marketing*
Fatwa Date : Thul-Qi'dah 24, 1437 / 27-8-2016
Question=
My question is about direct selling or multi-level marketing business. I saw many fatwas on your website that say that it is haram. However, I have some specific questions. So please do not give any question link. In our country, there is a company that uses a direct selling policy. Their product is very useful. So I want to buy their product.
1) If this policy is haram and we buy their good, then we are contributing on this haram. But their product is unique and very useful, so how can I buy it?
2) In MLM, there are levels. Suppose that I buy their product and automatically become a distributor. As the products are useful, I tell other people, and they also buy with my reference. Then can I take the commission on their purchases as I told them to buy it? If I only take the commission on my next level buyers, and not from all level buyers, would that be halal?
3) Is MLM always haram or is it permissible sometimes? What would the conditions be?
4) When I speak of this to MLM-related people, they give many logic arguments on their policy to make it halal. So I become confused. To learn about MLM in detail, could you please suggest any books or articles in English?
May Allaah reward you.
Answer
All perfect praise be to Allaah, The Lord of the worlds. I testify that there is none worthy of worship except Allaah and that Muhammad , is His slave and Messenger.
Your question included several points to which we shall briefly answer as follows:
1- There is no harm in buying a product that is beneficial for the buyer for its regular market price. What is forbidden is to buy a product that the buyer does not need but only buys in order to join a multi-level marketing system. If the person buys a lawful commodity that he needs in return for its regular price, then there is no harm in that, and he is not obliged to market the company's products.
2- There is no harm if the marketing system of a company is lawful and a person wants to market its beneficial products in return for a commission.
Among the conditions for the lawfulness of an MLM system:
- There should be no membership fees charged or any sum paid to upgrade membership or the like.
- That the buyer buys a product for its benefit at its regular price, not merely to join the system.
- The commission of the participant in return for his efforts in marketing the company's products and inviting new clients should be known beforehand. Making his commission or part of it contingent on what the new participants that he brings in achieve is impermissible.
3- There are many forms of network marketing, and some companies are inclining towards developing systems that are compatible with the Islamic Sharee'ah and free of the prohibited and problematic aspects. Therefore, it cannot be said that all network marketing systems are generally unlawful; there are different types and conditions, although most of the network marketing systems involve Sharee'ah prohibitions, Gharar (risk and ambiguity) and Jahaalah
(ignorance of monetary compensation). There is no doubt that there are endless lawful ways of earning a living and earning profits other than such prohibited or doubtful means.
The Prophet , said, " That which is lawful is clear, and that which is unlawful is clear, and between the two are doubtful matters about which many people do not know. Thus, he who avoids doubtful matters clears himself in regard to his religion and his honor, but he who falls into doubtful matters (eventually) falls into that which is unlawful, like the shepherd who pastures around a sanctuary, all but grazing therein... " [Al-Bukhari and Muslim]
He , also said, " The Holy Spirit (Gabriel) has inspired to me that no soul will die until it has completed its appointed term and received its provision in full, so fear Allaah and seek provision moderately. " This hadeeth was cited by Abu Nu‘aym on the authority of Abu Umaamah and Ibn Hajar attributed it to Ibn Abu Ad-Dunya and underlined that the version narrated on the authority of Ibn Mas'ood has been declared saheeh (sound) by Al-Haakim .
Allaah knows best... Called from islamweb.net)

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