Is Network Marketing Halal? (Everything Explained!)

Network marketing is a business model that relies on one-on-one sales by independent representatives, many of whom work from home.

A network marketing business may necessitate the formation of a network of business partners or salespeople to assist with lead generation and sales closing.

I saw this question on Quora that was trending – “is network marketing halal?”

This question caught me off guard at first. I read other people’s commentary on this topic because I didn’t know how to approach this question myself and felt quite inquisitive to know more about it. 

What do you think? There were a lot of other people who were wondering the same thing. 

If you’re reading this, you’re probably in the same boat. 

Good for you. After all that I’ve read on the subject, I have an answer for you.

The term “halal” refers to moral activities (permissible activities) that are not considered a violation of the word of Islam.

This post will be especially useful for my Islamic audience who want to learn more about network marketing but are unsure whether it is permissible under Islamic law. 

All of your questions will be answered in this article. To help you out, I will break this article down into various sub-sections. This will help to give you different angles on this subject. 

I will do my best to present information to you in a concise and understandable manner. 

So, let us delve deeper into the subject.

Is Network Marketing Halal?

I don’t want to beat around the bush and keep you waiting so let’s come down to your answer.

Network marketing is a business concept that relies on a network of distributors to grow a particular service provider/company. To make money, three fundamental types of systematic strategies are typically used: hiring, lead generation (collection leads/contacts), and building and management.

Network marketing is classified into three types: single-tier, two-tier, and multi-level marketing. 

Simply put, network marketing is a business model that just relies on independent agents selling to others, typically from the comfort of their own homes.

To put it directly, it is a successful business strategy for assisting brands in attracting customers. In short, Network marketing is totally halal and not haram in any way. It adheres to Islamic norms.

So, don’t worry about violating the word of Islam or engaging in anything which will be considered haram since network marketing is entirely permissible in Islam.

I hope I have calmed you down if you were worrying over this. If you are still not satisfied with this answer then keep reading because I will shed further light on this topic.

I can understand your concern and how you must want to know for sure whether engaging in network marketing can be potentially taken as haram.

If you are wondering whether network marketing entails anything dubious, schemy, or employs shady tactics then don’t worry, I will try to do my best to answer your queries until you are satisfied.

Let me repeat it though that if you follow Islam, you have nothing to fear from trying out network marketing for yourself. 

As long as your goal is to add value to people’s lives, there’s nothing wrong with making a living by promoting brands through network marketing.

You are not doing anything immoral or shady. However, be cautious not to engage in any unethical network marketing practices.

This is where the real devil lies, the haram in network marketing has more to do with the schemes you employ to pull in customers.

Try to promote those products and services that give detailed information to the customers and are super transparent in their approach.

Their aim should be to help people by adding value to their lives and not simply to make big bucks.

It’s completely halal and an excellent way to earn money online. Some of the world’s largest corporations including Amway, Avon, MaryKay, Forever Living, Herbalife, and Tupperware, use network marketing to expand.

All these businesses have a specific goal in mind which is to increase sales and even provide employment opportunities for people who are looking for passive sources of income. 

I advise you to focus on adding value to people’s lives. Don’t trick them to earn handsome revenue. Do not jeopardize your integrity in order to make some extra money.

These are some of the things that you should keep in mind if you don’t want to get into the dark side of this industry. 

You will see many people scheming innocents to make more money but this is completely a breach of trust. I find this detestable and I’m sure you don’t wish to get into something like this.

This is not to say that there are no ethical people who are practicing network marketing in a way that is ethical as well as profitable. 

Now to give you a better idea about what I mean by employing shady schemes to trick innocents into the trap of haram network marketing, I will provide you with an example.

There are quite a few online network marketing scams floating around the internet. Among these, I have identified how affiliates are getting promised to get paid to buy apps and cryptocurrencies, and getting paid for clicks.

They use catchy slogans such as  ‘Earn money in seconds’,  ‘Make $5000 every hour’ etc. All these are not just CTAs, they are tricks to scam you.

Don’t resort to such measures for earning money. Earning money in the 21st century with so many opportunities is not that big of a deal but you should never compromise your integrity.

It might take time to build an effective network that aptly functions in a manner that brings profit to your table but it’s better to let things grow organically.

Don’t push your luck with such dubious means. They can come to haunt you in unimaginable ways. Scams, sooner or later are always caught.

As a result, before you begin network marketing, you should exercise caution. Keep in mind that this business has both positive and negative aspects.

Consider the following red flags before promoting any product or service through network marketing: 

  • Getting paid to bring in new members.
  • The more money you invest, the more money you receive. 
  • They over-promote but never follow through. 
  •  You’ve been asked to sell products that you haven’t seen yet or that are still in the development stage.

Now, let me address your next concern. 

What does Islam say about multi-level marketing?

Multi-level marketing companies sell their products to customers through people rather than retail outlets. Do you know what this does? It shifts the responsibility for sales to independent distributor networks. 

This is what I’ve gathered. These so-called distributors are not actual employees of the company. They are instead independent business owners who just function on multiple levels to get more and more people to join them. 

Now, let’s come down to what’s been troubling you – what does Islam say about multi-level marketing? Is it haram or halal?

Multi-level marketing is halal in every way. It is permissible by the code of Islam. Keep in mind that you practice multi-level marketing in an ethical manner.

As long as you don’t trick the customers and reap profits by fooling innocents by employing dubious means, you are not violating Islam. 

What will be considered haram is that you seek to profit from spreading misinformation or should I say distorting information to acquire more customers. 

Be careful then not to make exaggerated claims and lead people into signing up for goods/services that are fraudulent in nature. To generate revenue, multi-level marketing companies rely on this extensive network of independent distributors.

These independent distributors are often the ones that commit fraud. Be honest in your practice and focus on acquiring customers the right way even if it takes time.

I’m sure you must have heard that good things take time…that’s what it is all about!

What is Haram in Network Marketing?

As I have established before, Network marketing is halal and in no way a violation of Islam. Yet, this is not to say there can’t be haram in network marketing. There are shades of grey everywhere.

In short, there is haram in network marketing, not by itself but by the way individuals resort to practicing it. 

Haram in network marketing is the unethical practice of duping customers into purchasing goods/services that are ultimately worthless and do not live up to the set expectations.

Some examples of haram in network marketing range from the claims made by fraud companies, shady networking methods created to trick people into signing up for something that will cost them, the projected image being far from the deliverables, etc.

Let me give you a few elaborative examples to shed light on this. Here are examples of haram in network marketing to look out for:

  • Schemy methods like paying influencers who take commissions for promoting products and services that are dubious are no less than scamming people. Seeing a bunch of influencers trying on a particular good/service will make people believe that it must be good. The truth can be far from this. 
  • Companies that promise results but don’t deliver focus on making a profit at the expense of the customers who place their trust in them only to realize that it was a total and utter mistake to do so.
  • Companies that promise income guarantees or claim to skyrocket your income are also a part of the list of schemers that you can encounter. By employing shady network marketing tactics, they pool in a network of people to push products and services that don’t have any merit.

With this, you know what haram in network marketing entails. So let me walk you through my perspective on this topic.

My Views On “Is Network Marketing Halal?”

I thought a lot about this. There are several people who don’t like multi-level marketing and are dubious about what it entails especially the pyramid scheme. Initially, I had some doubts about whether this was truly ethical or not as well. 

Here’s what I’ve traced it all down to – Network marketing is used by MLM companies to sell their products or services directly to customers through a person-to-person model.

This is how they drive their sales. When you join a multi-level marketing program, you may be referred to as a ‘distributor,’ a ‘participant,’ a ‘contractor,’ or a ‘founder.’

Through network marketing, you can earn money in two ways:  as a direct retailer or by recruiting new members and earning commissions based on what they buy and resell directly. 

At the end of the day, it depends on you whether you use network marketing to promote halal products/ services or you get into the lure of tricking customers to earn some extra cash.

Network Marketing will be halal for some and haram for others depending on how they plan to use it.

It is up to you to choose whether to promote goods and services that deliver on their promises ethically or to focus on taking full advantage of innocents by misguiding them through inappropriate methods. 

Network marketing has become an important industry in which you can participate and profit. Organizations and product lines can use network marketing to reach as many people, grow their operations, and bring in more revenue.

So there you have it. That’s my opinion on this subject. I hope you didn’t find it complicated. What I just mean to emphasize is the fact that there are shades of grey everywhere and in every field.

Network marketing will be no different. There are all sorts of people out there and some will resort to any means to trick clients.

Pooling up a network takes time and if you want to start with network marketing, don’t be in a hurry to get results quickly.

Remember this old proverb – ‘slow and steady wins the race’, basically, my point is that it might take time to grow for you as a practitioner of network marketing.

You won’t get results overnight. It will take consistent effort and you should be willing to give it your all. 

Don’t get disheartened by the slow pace. It will eventually grow and I’m sure you will see the results of your hard work.

Resist the temptation to trap clients during this growth phase. Quick results earned by foul means don’t amount to much at the end of the day. It might even get you in legal trouble.

Be cautious about this matter. Don’t be afraid to give network marketing a try though.

In Conclusion

Now that you have reached the end of the article, let me wrap it up for you. Network marketing is by no means haram, it is not a violation of the Islamic code in any manner. It is halal to practice network marketing.

What matters is that you practice it in an ethical manner. Don’t trick clients and don’t pool in a network by unfair means.

Be wary of the pyramid method and go for steady growth. You don’t need to get a jumpstart by using any underhanded tactics.

I’ve also attempted to simplify the true evil in network marketing, which has more to do with a person’s sense of morality than anything else.

My subjective view on the subject will lead you to incorporate this strategy in a way that is permissible by the code of Islam.

So there you have it. I hope you are satisfied with this article. I tried to answer all your possible queries regarding this subject.

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