Question:

I’ve recently been introduced to a group of entrepreneurs who are working together in Network Marketing Company, some of them as part time and they have full time jobs in professions like engineering or medicine, they have real products from very famous brands like Nike, old navy, North face etc.. and websites accounts etc..

I was introduced by one guy that I met by chance and they started giving trainings and presentation on how to develop financial freedom and they gave books to read during three meetings that I had so far, and they didn’t ask any money for that information and it’s really useful staff on how to manage you own expenses etc.

The question is that I read online about network marketing and I’m not sure if it’s allowed or not.

The idea is that instead of shopping in usual shopping centres you will do shopping online from them and you will get discounts or cash back and if you refer anyone (you need to explain everything and this is a selective process where 6 meetings happens to go throw everything) you will get commission because you referred him and you can do this part-time or full-time.

I’m student studying masters in a University and they advised me to continue studying but have this as part-time in order to grow my network and once you refer many people you will get higher income.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

JazakAllahu Khairan for writing to us. At the outset, it must be pointed out that “Network Marketing” is essentially a marketing method and not an investment scheme, or some get-rich-quick scheme. It is important to make this disclaimer because common perception and usage of these terms among the populace may mislead in understanding the answer.

Network marketing at its core is nothing but utilizing of one’s personal network of acquaintances to market a product for a company while earning a commission on the sale. However, the practical and commercial applications of Network Marketing are of many different setups. While few are void of problematic aspects wherein the income would be halal, most setups are intertwined with clauses that render those particular models impermissible. 

This is also besides the fact that general application of Network Marketing gain their strength from using emotional desire of get-rich-quick, lucrative investment and similar tactics which are time and time again used for manipulation of gullible individuals. Although every company’s product and setup will be unique and require an independent review, we are currently working on a separate article to address the general concept of Network Marketing as a whole.

In the meantime, we suggest not to engage in this venture. The matter may not be about halal/haram alone, rather about ethics, morals and taking advantage of others for personal gain or being deceived oneself in the same light while loosing one’s hard earned wealth.

And Allah Ta’āla Knows Best

Mufti Faisal bin Abdul Hameed al-Mahmudi