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Fatwa CenterRuling on participating in network marketing
Question
Alselam aleikom, Lately I have signed up in a company called WorldVentures. It's a VIP travel club and lifestyle club where you can even get a residual income from the company if you get more customers in it. Now, when somebody is signing up just for the product which are dream trips in very cheap prices and some other services as a search engine for tickets, hotels etc. For this membership you are paying 200 dollars once in your life and 50 dollars monthly fee. Lately the company said that for each dollar you spent on your membership they give you back a reword point to travel with those points. So immediately you get 200 points to use them for a dreamtrip, and after a year you get another 600 points which are from the monthly fees that you have paid. For those who want to be a representative of the company and get paid from it they pay another 100 dollars once and 11 dollars each month and the company will provide them with some business websites, a bank account where they will get paid and a MasterCard to be able to withdraw your salary from anywhere in the world. For those who are customers (who got the membership) and representative, they pay 61 dollars each month and after a year the get 600 point as well, because the reward points program is only at the memberships fees. If you bring 4 customers you stop pay any monthly fee. I know that the company earns money from the air tickets, from the hotels, from the trips, events, from the international trainings were they teach us how to sell the memberships and some personal development things and from the monthly fees. Also the company has its own foundation were a specific percentage of the total profits is going for helping people who need help and for building schools and accommodations in counties as Guatemala and other countries. I would like to know if it is halal in case I earn money through the company because I am going to bring customers. WorldVentures: http://www.worldventures.com/ Foundation: http://www.worldventuresfoundation.org/
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.
First of all, we would like to commend your keenness on verifying the lawfulness of your actions and eliminating any doubts regarding religious matters. May Allaah reward you generously for that. Indeed, this is how a Muslim who is keen on maintaining his religiosity should be.
As for your question, it is impermissible to take part in this network marketing company as long as it stipulates paying fees in return for participation. This is because the transaction in this case is considered gambling, which is prohibited in Islam. The customer pays fees (for participation) in exchange for the gifts and discounts that he hopes to gain in return for bringing in new customers for the company. In this process, if he succeeds in bringing in new customers for the company, he earns those gifts and discounts; otherwise, he loses the fees he paid for participation. This is considered forbidden gambling.
Verily, the permissible means of earning money are endless for those who look for them and do not confine themselves to the forbidden means of earning living that are based on Gharar (risk and uncertainty in transactions), deception, devouring of people’s wealth unlawfully, and similar prohibited transactions done in many companies that adopt the network marketing system.
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