Ruling on Working with Network Marketing Companies

প্রশ্ন · Question

Our respected Sheikh, As -Salaam Alaikum Wa Rahmatullah Wa
Barakatuhu, my question is regarding the rule of working with network
marketing companies, Barak Allahu feek and protect you to support
the dawah.
Question:
As-Salaam Alaikum Wa Rahmatullah Wa Barakatuhu, I would like to ask
about the ruling on Q -net company based on the idea of network
marketing, with the knowledge that the sales in this company is carried
through marketing the products in a network, and the more clients a
salesperson gets into the network increases his commission, even if he

does not put effort to sell. For example, if the person No. 100 carries
out the sale, then the founder of the network receives money,
although he has not put in any significant effort, but he receives it only
because he is the founder or is one of the parties of the sales network.
Please provide us with the answer because this type of sale has spread
rapidly in nearly all of the Islamic country including the Arabic
countries.

উত্তর · Answer

Wa Alaikum As -Salaam Wa Rahmatullah Wa Barakatuhu to both of
you,
Your questions are about the same subject, and although you did not
provide details of the subject, but this kind of selling is widespread. I
have received questions about it from more than one area, and I will
mention some of the questions that came from Southeast Asia and
Central Asia to clarify the picture, then I will respond to this type of
sale:
1. Question from Southeast Asia:
"A trading company for health products dealing with its customers as
follows:
If a customer bought a health product he gets the right to take the
commission on two buyers he brings to the company. Once they buy a
health product of the company, each one of them has the right to
bring two customers and take commission for that, in addition to the
right of the first buyer to take additional commission for the four who
were brought by the two customers brought by the first customer. And
so on and so forth. Is this permissible?" End.
2. Question of Central Asia:
"We have business transactions of the Quest Net company, which are
as follows:

"The Quest Net Network has products, and requires anyone who wants
to market their products to buy something from these products, and
then after their purchase of products, they have the right to also bring
others to buy from it for a commission for those they bring. If he was
able to bring six customers to buy its products, the company will pay
him a commission of 250 dollars, and then the process trickles down.
For example, the first marketing customer brings two to buy products
from the company, then eac h of these two customers bring two
customers, the total is six, the first marketer receives 250 dollars, the
other two marketers receive nothing until each and every one of them
bring six buyers, and then each receive 250 dollars, and the first
marketer gets 500 dollars for the fact that all of them are his followers
to buy products ...
If the buyer wants to market the company's products, he would
receive a fortune! This is the motive behind the incentive purchase of
the company's products, i.e. the expectation of attaining a fortune,
and not the desire to buy the products, since the value of the product
is not worth the tenth of the price set by the company for this product.
But if the buyer was not able to market the products, i.e. to bring
buyers to buy from the company, then the product remains in his hand
which he bought for an expensive price, without taking any money
from the company. This leads to depriving the buyers who are not able
to bring others or who are in the last row of buyers. In Central Asia
many operate in this manner. Is this transaction permissible?" End.
It is clear that the issue is the same with a different number of
customers that entitles the marketer who brought them to get a
commission for, there was a question from Southeast Asia and Central
Asia, no doubt that this is the reality of both your questions, and the
answer for them is one, and because the question of Central Asia is the
most comprehensive, I will focus on it in the answer:

After considering the reality of the Quest Net company, with its
different methods of transactions, and even though the idea is the
same, which is that the company deals with marketers who will bring
buyers "customers," for it and it will give them a commission in return,
under certain conditions, i.e. they are brokers to the company, who
bring buyers and take a commission in return ...and from analysing the
reality of this transaction shows the following:
First, this type of companies deal with this network of marketing for
several products, these companies require from those who market its
products to buy something from these products, and then it gives him
the right to bring customers to it, in return for a commission, "i.e
which makes him a broker for the company who brings buyers and
takes commission for that." It does not give him a commission until he
brings six of the buyers, according to the question of Central Asia, and
until he brings two customers according to the question of the other
region, i.e. according to the program prepared by the company for this
purpose.
In other words, the first buyer takes a commission for the two, "or six"
whom he brought plus another commission for the four customers
brought by the first two, or six brought by the first two ...
Marketing continues "brokering" in such a sequence in the form of
brokerage or marketing network.
Secondly, this type of trading business is contrary to Islam, and here is
the explanation:
1. The company requires the marketer to purchase their products to
have the right to become its broker, for a commission, i.e. he brings
clients and takes commission in return, whether the commission is
after he brings six buyers or after bringing two buyers.

This means that the purchase contract and the brokerage contract are
two contracts in a single contract, or two transactions in a single
transaction, because each is a condition of another. This is haram.
«نَهََ رَسُولُ اللهِ (ص) عَنْ صَفْقَتَيْْ ِ ف ِي صَفْقَةٍ وَاحِدَةٍ »
The "Messenger of Allah ﷺ has forbidden two transactions in one
transaction" (Extracted by Ahmad on the authority of Abdul Rahman
bin Abdullah bin Masood from his father). It is as if I tell you: If you sell
for me, I will hire from you or become your broker or buy from you ...
etc. It is clear that this is the reality according to the question, selling
and brokerage are in one contract, i.e. the obligating of purchasing
from the company is a condition for the brokerage, i.e. marketing for a
commission for buyers brought for the company.
2. The brokerage is a contract between the seller and those who bring
the customers, and the brokerage commission in this contract must be
for the person who brings them to the company, and not for the one
brought by others. As the brokerage commission is in the transaction
of the company mentioned. The broker "marketer" takes it, in return
for customers he brings to buy from the company, as well as the ones
brought by others; this is contrary to the brokerage contract.
3. The purchase price from the company is accompanied by exuberant
injustice, that the buyer is aware of, however, it is not free from
deception as a result of the "twisted" methods used by the company
to promote its business so that it leads the buyer to pay the high price
for the company's product, which cost a small fraction price ... And all
because of what the company promotes of a bright future for the
buyer because he will have the opportunity to market the company's
product for a commission for the buyers he bring to the company, as
well as for the buyers that his first customer will bring!
When the buyer fails to bring buyers, especially those in the last chain
of the buyers, he will be entrapped by deception, and loses the high

price he paid for the product which is not worth the tenth of the
payment! Deception is forbidden in Islam. The Messenger of Allah ﷺ
said,
«الخَدِيعَةُ ف ِي النَّار
Deception leads to the fire ..." (Extracted by Bukhari on the authority
of Ibn Abi Awfa). The Messenger of Allah ﷺ said to the man who
deceives in sales:
«إِذَا بَايَعْتَ فَقُلْ لاَ خِلاَبَةَ »
"If you sell and buy then say no Khilabah" Narrated by Bukhari from
Abdullah ibn Umar (ra), and Khilabah is deception. This is the literal
text of the hadeeth and it meaning shows that deception is forbidden.
Thus, this transaction is not permitted in Shariah.
In summary, the transaction of the Quest Net company in the manner
explained in the questions violates the Shariah, I ask Allah ﷻ to help us
with His grace and virtues to establish the Khilafah "Caliphate" and to
implement the economic system in Islam, which shows the pure and
transparent economic transactions that provide a comfortable living
and tranquil life to all its citizens and Allah is Mighty and Wise.
Wa Alaikum As-Salaam Wa Rahmatullah Wa Barakatuhu
Your brother,
Abu Yasin