Assalamu alaikkum,
Is MLM haram? I believe this is very generic Question. I want the answer to be specific to this concept not specific to any practices conducted in this businesses because even halal business can be conducted in haram way. So please tell me concept of MLM is haram or halal. I know trading is halal, so concept is clear The business may be haram because of the product or by the practice.
So I want make the concept clear, It is the concept of creating customer base for a product or a service instead of creating it through conventional direct marketing. It may be other wise called as referral marketing. So the profit earned by the Middle marketers(Wholesale agent, stockist,advertisers,etc... ) is instead shared among chain of people who are between the end user and manufacturer. Profit sharing is differs from company to company.
Let me put it this way, If Mr.X is trading a product in conventional marketing method and claims his business as halal. Lets assume his claim is accepted as per Islamic law. If Mr.X is trading the same product in MLM in the same manner and claims his income as halal. Is Mr.X is right?I believe I have made clear my point that my question is not specifit to practices, products or their pricing its specific to the concept.
I appreciate not only your answer also your references and links , as major decision in my life will be based on your replies. Please validate your answers with valid proofs Quran verses and strong hadiths(not weak ones)

Wassalam,
Amjath

What is the meaning pf MLM

Assalaam alaikum,
I am not sure I understood what MLM stands for,if you could give us an exact word instead of an abbreviation.


You may like to read through the following.
Fiqh: Validity of Business Transactions in Islam, Conditions (Shuroot) (http://www.bakkah.net/articles/fiqh-conditions-buying-selling.htm)

Wa alaikum salaam

MLM is Multi Level Marketing

Salaams,

Thank you J!

Amjath,

Please refer the following links for detailed answer.
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Islamtoday.com: Multi-Level Marketing Schemes (http://www.islamtoday.net/english/showme2.cfm?cat_id=2&sub_cat_id=736)

ARE AMWAY AND/OR MULTI-LEVEL (NETWORK) MARKETING COMPANIES ALLOWED IN ISLAM? :: IslamBank.Community :: Easing the Burden on Humanity :: Home of Gen M - The Interest-Free Generation :: HiMY SYeD's Website :: Be Interest-Debt Free :: Join IslamBank.Com (http://tyo.ca/islambank.community/modules.php?op=modload&name=News&file=article&sid=686)

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Wa`alykumAs-Salaam wa Rahmatullahi wa Barakaatuh.
In the Name of Allah, Most Gracious, Most Merciful.

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

Dear brother in Islam, we would like to thank you for showing keenness on knowing the teachings of Islam, and we appreciate the great confidence you have in us. We hope our efforts meet your expectations.

With regard to your question, first of all, we'd like to make it clear that any transaction that involves devouring people's money without right is completely rejected, as Almighty Allah says: “O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent, and kill not one another. Lo! Allah is ever Merciful unto you.” (An-Nisaa':29). Not only that, Islam also makes it clear that the subject of transaction must not be something Haram, and it must keep away from any form of deception or fraud. This reflects Islam's concern on preserving people's rights.

Responding to your question, Dr. Monzer Kahf, a prominent Muslim economist and counselor, states:



The pyramidic network marketing is permissible provided the following three conditions are fulfilled:

1) Commodities sold or traded in are themselves permissible such as selling real goods. Hence, selling phony and prohibited goods makes the process prohibited.

2) The commission structure must be disclosed with full transparency to all new customers/members when they are invited, so they know when they join that the person who invites them has a stake in this invitation.

3) General contract requirements are observed, such as aptitude to contract, full description of the goods, clear delivery and payment process, etc. and if they sell goods that require special additional conditions such as gold that requires delivery and full payment at the time of contract, such additional conditions must also be satisfied.

If these three conditions are satisfied in this company you ask about, its transactions are then permissible.



Do keep in touch. If you have any other question, don't hesitate to write to me




Niyaz K

Assalamualaikum.

GDI or Global domain international is haram or halal?

Tq..