Question: 

I wanted to
ask a fatwa regarding multi level marketing. Particularly a company named
Nuskin Enterprises that specializes in skincare, health and beauty
products. 

Is it
permissible to earn from the recruits that one has in their downline
considering there is no sign up fee to join the company and one only earns once
product is sold? 

Answer: 

Our answer pertains particularly to whether earning a commission from recruits is permitted or not. We are in no way sanctioning or approving of the health care or beauty products being marketed (i.e. as far as the permissibility or impermissibility of these products is concerned).

If you recruit agents who in turn recruit agents and so forth, then taking a percentage of their sales commission simply on the basis that they fall under your team is incorrect. In order to earn a profit or commission, there must be some degree of work-input from your side, as explained in the following paragraph:

If you recruit agents and you then sell the products (that are of a permissible nature) to them at a profit (that is after purchasing the goods from the company) taking such profit from them will be permissible. As far as commission is concerned, if you pick up the products from the supplier and deliver it to the agents/recruits, then (because of this work done by you), there is no harm in taking a stipulated commission from the sale of those products. Similarly, if the only work that you do is to refer customers to these recruits/agents and you have an agreement with the agents that for every customer that you send to them (and the sale is secured) you will be entitled to x-percentage of commission, then too, you may take a commission. In conclusion, it will not be correct to take a commission from the agents (without engaging in any work whatsoever) simply on the basis that they fall under your working team.

Another option would be for the marketing company to voluntarily gift you a certain amount of money as a gesture of goodwill for the sales that are being generated by your team members. You must bear in mind that this will be considered as a voluntarily act, hence the amount will be left totally to their discretion. To re-iterate, due to this being a voluntarily act, you have no claim whatsoever against the company, nor are you entitled to any compensation. If they wish to gift you they may do so, otherwise not.

These are some of the possible options that come to mind.

And Allah Ta'aala knows best!

ANSWERED BY: Mufti Mohammed Desai 

CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B 

Date: 27 Dhul Hijjah 1441 

English Date: 18 August 2020