The first appearance of network marketing or multi-level marketing (MLM) was in 1945 by Carl Rehnborg, who used it as a means to increase sales for his nutritional supplements company called Nutrilite. Later on, his new advisors, Jay Van Andel and Rich DeVos, developed the concepts of network marketing and took it to a higher level. They founded the famous network marketing company, Amway, in 1972. Since then, this model has continued to evolve and transition to new horizons.
Network marketing is a type of marketing that relies on using a network of personal or social relationships to market and sell specific products or services. It often involves inviting or persuading friends, relatives, or acquaintances to join the network and purchase products, services, or even join the marketing team.
Network marketing is considered an effective form of marketing that relies on personal relationships and trust among individuals. It provides marketers with a great opportunity to quickly expand their customer base by leveraging existing networks.

Network marketing can generally be classified into two main types:

1.Product-based network marketing:

In this type, a network of distributors or agents is built to sell products offered by the manufacturing company.

2.Network-based network marketing:

In this type, a network of independent marketers is built, who earn commissions for each product or service they sell, in addition to forming teams to expand the network.

Advantages of Network Marketing

Network marketing has many advantages and features that make it attractive to many individuals and companies.

1.Low cost:

Network marketing is usually low-cost compared to traditional marketing methods, as it relies on personal relationships to promote products or services rather than using traditional advertising.

2.Rapid network expansion:

Network marketing allows individuals and companies to quickly build a wide network of customers or distributors by leveraging their personal and social relationships.

3.Trust and reliability:

Network marketing relies on personal relationships, creating a business environment characterized by trust and reliability among individuals and companies.

4.Mutual support:

Network marketing encourages cooperation and mutual support among network members, as they support each other in achieving success and reaching their goals.

5.Opportunities for Personal Growth:

Network marketing provides many opportunities for personal and professional development by building a wide network of relationships and learning new skills in communication and sales.

6.Work Flexibility:

Network marketing allows individuals and companies greater flexibility in organizing and managing their business activities, as marketers can work from anywhere and at any time that suits them.

7.Social Network:

Network marketing relies on personal relationships and trust among individuals within the network.

8.Rapid Growth:

Personal networks can provide quick access to a large number of potential customers.

8.Support and Training:

Often, the marketing company provides support and training to its marketers to help them succeed.

9.Income Opportunities:

Network marketing offers opportunities to earn income through commissions on product or service sales.

10.Effective Communication:

Network marketing enables companies to communicate directly with customers through their personal network of relationships.

These are some of the key features of network marketing that make it an attractive option for many individuals and companies in the business world.

Negatives of Network Marketing

There are many positive aspects of working in network marketing, however, there are drawbacks that prevent some from entering this field, including:

First Most marketers do not achieve income:

Most marketers do not achieve income even part-time through network marketing.

Second Direct interaction with customers at the time of sale:

Most sales transactions occur face-to-face, and many beginners in network marketing may have difficulty talking to strangers or discussing the advantages and disadvantages of their products.

Third Slow growth:

Network marketing may seem like an easy and quick way to make money, but it often takes long periods to yield satisfactory results.

Fourth Frequent exposure to rejection:

Many people will refuse to make a purchase when starting network marketing, and this negative response may continue repeatedly, leading some to refrain from working in the field.

Fifth Some deals containing deception:

Some deals may involve deception, making it difficult for customers to determine whether there is something real and tangible in the sales process or if it is merely a scam using modern network marketing.

As for the Sharia ruling, it depends on the circumstances and specific details of each case. However, network marketing can be considered Sharia-compliant if operations are conducted based on principles of justice, transparency, and ensuring not to deceive customers with false promises or force them to make purchases.
Efforts should be directed towards providing high-quality products or services that offer real value to customers.