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Fatwa CenterConditions for permissibility of network marketing
Question
Asalam walaykum, I have a question regarding business. I am In a network marketing business in which I review wholesale products in health beauty and cosmetics. Most of the vitamins are halal or don't have pork in them. I sell them in retail to make a profit. Firstly is this allowed to profit? Second it's networking business I share this business with people around me who are looking for extra income. I teach them to change their buying habit, sell, and find business partner's. The company pays based on volume through points. The bigger network the more I make but I make only when I help them. There are incentives and bonuses. Someone can start in my team and make more than me if they work as hard. I am doing Amway business and met a lot with Muslim people doing this business. Is this allowed? Building a network, creating profit, and incentives for helping them create more points etc? Thank you so much!
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, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
The condition for the permissibility of such a marketing system is that no fees are charged, whether directly or through buying products or the like, in order to join as we explained in Fatwa 86293.
If this condition is met and membership is for fee, then there is no harm in marketing lawful products, promoting them, or buying them for the purpose of selling them and making profit, or attracting new customers in return for a fixed financial compensation.
Allaah Knows best.
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