This document discusses multi-level marketing (MLM) and analyzes whether it is considered bad or good. It outlines some of the advantages and disadvantages of MLM from both a business and Islamic perspective. The advantages include the potential for both full and part-time work, incentives for top performers, and a support system from more experienced marketers. However, the disadvantages note that significant money can be spent on expenses without guarantees of returns. Additionally, some MLM plans may be considered illegal pyramiding or manipulate products in ways that are prohibited from an Islamic view. The document does not take a definitive stance but encourages thinking carefully about the risks and perspectives.

1. MULTI – LEVEL MARKETING
BAD OR GOOD?
Prepared by Raja Nur Wahyu

3. • MLM firms sell their goods
not through a conventional
distribution system and retail
outlets, but through individual
people, selling to their friends,
acquaintances and strangers.
(Bloch, 1996)

4. MLM PLANS AND
STRATEGIES...

7. ADVANTAGES
OF MLM…

8. • The company is
linked to a solid
track record
and showcases
great work
ethics.

9. • By becoming a
member you
can ask
questions to
more
experience
marketer.

10. • Don't need any
experience. Just
practice business
skills and
knowledge and
obtain the mastery
experience .
(Fu Dai a, 2011)

11. • Both full-time
and part-time.
• The
competition
amongst peers
is non-
threatening

12. • Decent
bonuses and
numerous
incentives
are given to
top-workers

13. • The fees to
start-up are
low.
• They offer a
strong support
system.
• Good examples
help lead the
way.

15. DISADVANTAGES
OF MLM…

16. When planning to create a
downline…
it can COST.

17. •A lot of MONEY is usually
spent on gas for your car,
eating out, and hotel rooms.

18. • Some companies only pay for
recruiting and do not give out a
commission based upon total sales.
This is pyramiding and it is
ILLEGAL!!!

20. MLM ON ISLAMIC
PERSPECTIVE…

21. HALAL or
SYUBHAH

22. Sales the product at higher
price so UPLINE can enjoy
higher rate return

23. If downline
FAIL to
achieve this
target,
maybe they
would NOT
be entitled to
receive any
COMMISSION

24. • Some MLM companies manipulate their
product, coerce the member to use their
product or sell haram products. All these
activities are Cleary prohibited or…
HARAM!!

26. TOP
10 MLM COMPANY
IN 2010

27. TOP 10 MLM COMPANY IN 2010
1. Amway (M) Sdn Bhd
2. Avon Cosmetic (M) Sdn Bhd
3. Cosway (M) Sdn Bhd
4. Elken Sdn Bhd
5. Extra Excel (M) Sdn Bhd
6. Hai-O Marketing Sdn Bhd
7. Herbalife Products (M) Sdn Bhd
8. RZ Corporation Sdn Bhd
9. Tupperware Marketing (M) S/B
10. Zhulian Marketing (M) Sdn Bhd

30. CONCLUSION
So, how much the entrepreneurs will be able
and are willing to LOSE if MLM doesn’t work?
Is it fit with Islamic perspective?
THINK ABOUT IT…

31. • Bloch, B. (1996). Multilevel marketing: what's the catch? Journal of Consumer
Marketing, 18 - 26.
• Fu Dai a, K. Y. (2011). Chinese immigrants in network marketing business in
Western host. International Business Review.
• Bakar, A. A. (2009, 04 20). Need to change public view on Multi-Level Marketing.