Network marketing

If its generic Marketing alone then this is not an issue, however if you are asking about MLM, Ponzi, Pyramid , Binary sales model schemes - yes they are banned (does not mean Haram). Haram - Halal is a different concept altogether.

Anything related to selling without proper license and registered with trade / commerce ministry could be deemed illegal.

No it's not. There is much going on in network marketing.

hi, thanks for your thought.....like in any other industry, there are legit and scams, so as in MLM. I know MLM is future marketing, I jus wanted to know if we could do it here?

thanks for your reply.

Hi, I need to know whether we could do MLM here in Saudi Arabia?

thanks

My answer was for network marketing and selling of products.
You just said MLM. The whole picture changes now.

I strongly disagree that MLM is the future marketing. It's a thing of past and it must be so for all the valid logical and financial reasons. By the way, MLM is banned even in most of advanced countries along with Ponzi scheming, pyramid modelling etc.

Oh, I just noticed that HRGuru has posted a reply similar to mine.

bro!

TheLegendLeads wrote:

I strongly disagree that MLM is the future marketing. It's a thing of past

I second this. I am aware of MLM since year 2001. One of my close friend living in another city was one of the starters in his city and earned quite a bit of money. He introduced it to me but I felt that I would be joining the bus quite late and most of the charms goes to the initiators (on top of branch), so I ignored it although I was a student then and saw real written checks.

Quite a few years later I came to know about pyramid terminology and was astonished to know that my personal assessment was right on the money.

And no; I am not a financial genius or even a finance professional. It was common sense

I jus came back from vacation.....In India the scenario has changed completely, govt.has taken stringent measures to curb pyramid/scam/ponzi schemes....and has recommended strong guidelines for legit mlm companies...few companies and countries twisted this beautiful concept  for monetary motives. I have been associated with mlm since Amway came to India in 1996....after Amway there had been flood of MLMs in India, and still coming, out of which only few are legit who run as per the latest guidelines by the Govt.India.  My experience with MLM has been good.

I appreciate your point of view, before I was also thought that MLM is a cheating.......

thanks for your time bro...

And, the MLM co.which promises quick rich plans, stay away from them......Legit MLM is not quick rich plan....you have to really work hard to succeed... every business has good and bad.....

Okies. That's good knowledge then. Can you share the differences you are talking about as compared to standard MLM companies?

MLM is banned in many countries, but is stupid in all.
The top of the tree get a pile of cash, but the rest are just mugs to be milked.
It seems to be illegal in Saudi, so no advertising such things here.

The so called scams/company has products for name sake, business plan profiting the company, no proper registration under company's act....no govt.certifications or approvals to do the business; name sake office set up, companies promising millions in a short span of time etc......

where as a legit company has everything in accordance with the new guidelines by the govt.of India and state governments. Useful products at a reasonable price, business plan benefiting distributors or consultants, tax paid income, not stressing on recruiting people into business, one can choose which product to buy has all the required certificates to start the business etc..........if you work hard for at least 4 to five years you can succeed in this business....

This is about Saudi, not India.

I know, in India only pyramid scheme has been banned....that's what my concern is, whether one can do mlm here in saudi.....

Pyramid is just another name for MLM scams.
They were banned in the UK a very long time ago because so many people were ripped off by nasty scam artists, and it seems Saudi has gone the same way.

Post #2 about wrapped the thread up.

You as an individual cannot run any schemes or business in KSA legally when you are employed or working with some other sponsor.

If your company / sponsor is thinking about MLM-  its banned in KSA - if you are selling items of less value at a premium price and expect the buyer to sell / market it to others. This is not only from a business law perspective, even under islamic jurisprudence this is not allowed.

I don't wanna run any schemes or business here.....I m already part of a Network mktg co. and I wanted to know if its legal to do it here... but I guess, its banned in ksa.


thanks for your time.....

I can't take in view legitimacy of an MLM organization, either in KSA or elsewhere.  MLM in itself is fundamental cheating. So, no organization working in cheats can, in any standing, be legitimate.

Why I am calling it a cheat, let me explain.
1- The items/services values are overrated just to allure  people.
2- Secondly, the people on early lines are paid dividends which haven't been generated through profiting. 
3- As the name suggests itself, it's kind of pyramid where base is on waters; consisting on people who are bound to sink.

This is not any business model. In short term, it can pay you easy money; though it's not something you must be squandering 4-5 years on, ending up with people whose losses are actually your gains.

I don't know if people are aware of that story I read in my childhood. In it, there was a bottle whose owner gets his every wish fulfilled but when he dies, his soul would be captured by the Devil. The only way to avoid this happening was to sell it at the lower price as compared to the one it was bought at. Moreover, every seller has to inform the buyer of this condition before the purchase.

You can imagine how hard (almost impossible) it was for the people at the bottom to sell it as buyers have to think if they will be able to sell it in lower cost.

hi , i was registered by one of the member of forever living products in ksa and i paid approximate 1500 riyals for their combo kit. they promise me i will have monthly commission and they will help to expand my network group. after i purchase the product there is no any help or any reply . can i complain it any govt agencies in ksa ? , kindly reply

This is common issue for everyone!
They are very polite and caring before the selling..
But after that, you can not find any answerer..
Bad Luck #Shafipooladan

just now i became to know it is illegal in ksa, if thus , they will find another victim to their trap. the money that i paid them with a good hope and that time was jobless and the money was reserved for room rent . but i dont know how to report it the related govt. agencies before they will trap another poor guy.

Sorry to hear that bro!
I hope they can avoid these people from the life..

You can try ministry of trade and commerce they have a complaint wing where they actually receive and enquire, mostly for Saudis though, in my experience, unless you speak the lingo well. But give it a try, but money lost is gone forever.

FrancisLay wrote:

Brother, 
         
           MLM is apporved direct selling bussiness in UAE and Meena region so its legal in saudi, qatar,oman and all of gcc. So please don't think that direct selling is scam or cheating bussiness. This will the future trend bussiness.

MLM scams are legal in the UAE but the things are stupid, dangerous and expensive to all except the people at the top.
The top cats earn from all the fools at the bottom but those fools tend to lose everything they 'invest'.

Whilst legal in many countries, these scams are rubbish in them all.

https://www.thenational.ae/uae/uae-resi … s-1.615160

SK, an Indian construction worker who lives in Dubai's Satwa district, said he was lured into direct selling with one company by a friend who said he could secure his family's future if he signed up.

“I was told I would get commission on the Dh10,000 payment I made,” SK said.

“People said I would make 40 million rupees (Dh2.3 million) within three years. When I signed up, they gave me travel vouchers as an incentive but I'm not sure where I can use them.”

He was also charged a fee to access online video content with selling techniques and inspirational testimonials.

Investors like SK, who only wanted to give his initials, earn commission from companies by selling items, from wellness and lifestyle products, holidays, watches, jewellery and technology. Regular training seminars are held in Dubai, attended by hundreds of people encouraging others to join.

SK, who has lost out on his Dh10,000 payment and not made any money back, has since asked for a refund after realising he would not be willing to introduce new buyers and risk them falling into debt.

“I borrowed money on a credit card; I was convinced it would allow me to help my wife and children,” he said.

“The man selling these schemes introduced himself as a billionaire, and said he is sitting at home counting his money and earning more than $112,000 a week.”

Direct selling is a legal business model in the UAE, provided the company is registered with the Direct Selling Association of UAE.