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)