Is It Valid to Stipulate the Purchasing of a Product to Participate?

Answered by Shaykh Muhammad Carr

Question 

A business suggests a vacancy, but participation requires buying a product. The person who referred me earns a commission, and I can do the same by referring others. Is this type of arrangement permissible in Islam?

ِAnswer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health. Thank you for your question.

This type of arrangement is validated under the ji‘ala contract. [Bajuri, Hashiya]

The arrangement above can be divided into two parts:

If you find a buyer for this product, I will pay you a commission. Secondly, since he bought the product, I will allow him access to apply for this vacancy.

While this legal construct validates the contract mentioned above, avoid inadvertently getting caught up in a pyramid scheme that seems to abound these days.

For more on pyramid schemes, click here.

Take care to manage the wealth that Allah has placed as a trust with you prudently.

And with Allah alone is our success.

[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.