THE DAILY ISLAMIC REMINDERS. Yaumul Ahad, 15th day of Zul Hijjah 1439, (Sunday 26th August 2018)
RULINGS ON NETWORK MARKETING, PYRAMID SCHEME BUSINESS ETC. BismilLaahir Rahmaanir Raheem.
As Muslims it's important we remind ourselves that whatever we do on earth we will one day die and face ALLAH to Account for whatever we accomulated or did with our given choice. Whatever we intend doing we must ask first if it's within Sharia permissibility or not. Don't act before asking. Earning haraam income is a serious crime against our soul. We will die and regret any pesewa we earned through haraam means. Halaal business must involve Halaal commodity, must have buyer and seller, the product must physically be located for exchange with purchasing currency, there should be expenditure to produce a commodity and a profit or loss expectations as part of the transaction etc to make it Halaal business or transaction. Anything short of this is haraam.
A pyramid scheme is a
business model that involves the exchange of money primarily for enrolling other people into the scheme, either without any product or service or an over-priced product being delivered. Pyramid schemes are a form of fraud and declared illegal in many countries.
A pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated sounding money-making formula. The essential idea is that the mark, Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the "business" expands. This is haraam way of making money please.
To enhance credibility, most such scams are well equipped with fake referrals, testimonials, and information. The flaw is that there is no end benefit. The money simply travels up the chain.
Pyramid businesses are no more than a scam, and all sorts of scams are categorically unlawful in the Light of Shariah Law. pyramid marketing companies such as the “Business” companies, whose work may be summed up as being the attempt to convince a person to buy a product on the basis that he will also convince others to buy regardless of how bad the products are else you wouldn't make money; they in turn will convince others, and so on without even verifying whatever is on sale if it's genuine or fake, halaal product or not. The more levels of participants there are, the more the first person will gain in commission, reaching thousands of whatever currency it is. Every participant convinces others to join in return for a large commission, if he is successful in getting new customers to join his list of members. This is what is called pyramid marketing or network marketing.
Scholars has said that: This kind of dealing is haraam, because the purpose of this dealing is to earn commission, not to buy the product. The commission may reach tens of thousands, whilst the product is not worth more than a few hundred. Any smart person who is offered a choice between the two will choose the commission. Hence these companies rely on marketing and advertising of their product which emphasizes the size of the large commission which the participant can earn, and offers the incentive of a large profit in return for a small sum, which is the price of the product. The product marketed by such companies is merely a screen or a means of earning these commissions and profits. Because this commission is really the point of the transaction, it is haraam according to sharee’ah for several reasons which will be shared tomorrow in Shaa ALLAH. To live in poverty till death is better than to acquire haraam income and die with it, you know why? Bcs those to inherit you will be enjoying your acquisition without even praying for you and you will be paying the price in punishment for such crime.
May ALLAH keep guiding us all and protect us from any satanic influences. Aameen.
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