Thoughts on MLM ?

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Hulk

Hulk

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Assalamualaikum

I was wondering if anyone has had any experience with this or have any knowledge about it that you don't mind sharing. I heard a lot of bad things about but mainly because of people who put their friends in awkward situations where they try to sell something to them. I am asking because a brother I am close with has decided to give it a try, so any thoughts on it would be appreciated.

From what I understand, you have to either sell your product or get others to sell product as well. I am curious as to the ruling on whether it is permissible or not. Also whether or not it is a fine option to go about earning.

Allahu alam.
 
I'd advise him to stay away from it. It's essentially a pyramid scam, only difference is that there's goods involved, and thus each transfer of money is technically legal due to being a sale. It's an exploitative business model. The only ones getting rich from it are those who can fool others to join in, and they get rich at the expense of those under them in the structure.
 
Thanks for your input Br Futuwwa I would really appreciate if you would elaborate on why it is considered a scam. I am not opposed to selling products to people(as long as there are no dishonesty involved) but what bugs me about this is the getting people to be sellers themselves. If I understand correctly by scam do you mean it gets people to "join in" with the impression that they will have a lot of money to make which is usually untrue?
 

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