Along with the development of knowledge, technology, and economic needs, innovation in Islamic finance continues to emerge, one of which is a Sharia MLM (Multilevel Marketing).

Based DSN records, number of MLM in 2007 reached 400. Number is expected to increase to 650 in 2011. Unfortunately, from only 5 650 MLM companies MLM sharia that pass certification.

To get a certificate of sharia compliance, a MLM company should implement sharia business practices which sale and purchase contract system is corresponding to Islamic law, the management structure has sharia supervisory board and that importantly, the business system is not unjust to its members.

With reference to the fatwa DSN (National Islamic Council) MUI No. 75 of 2009, an MLM company will be considered in accordance with the sharia if it meets the 12 requirements specified by the DSN MUI. There are several points that differentiate between Conventional MLM and Sharia MLM:

1. Organizationally, MLM companies have DPS Sharia (Sharia Supervisory Board) which is charged with overseeing the company’s business activities and provide guidance so that all activities within the company are not in conflict with Islamic teaching. This supervision includes the products to be sold, promotion, marketing plan and ceremonial activities contained in the company.

2. Products sold are decent products / halal consumed in Islamic law. Products in the category of food and beverage should get Halal or Halal Label Certificate. There is little difference between the term Halal Certificate and Halal labeling. MUI Halal certificate awarded to the company but are not included in the product packaging. While the halal labeling included in the product packaging. For products that do not include food or beverage category sufficiently consulted orally or in writing to the DPS.

3. Systems bonuses to members and the company’s business marketing plan must be free of things that are forbidden, primarily element of maysir (gambling), gharar (deception or confusion) and usury. To ensure this, the DSN MUI call management company to listen to the presentation of the marketing plan, a review of the marketing plan, visit the company, looking directly into the production process of the plant site, conduct inspections and frequently asked questions to management. Then do the Shura / deliberation scholars’. Then decide whether the company had filed a Certification Sharia meets the requirements according to the fatwa 12 DSN 75/2009? If it meets the Sharia Certificates will feed all by DSN MUI.

4. Sharia as The True MLM product oriented is in the form of goods sold, rather than on recruiting members. For example if a partner can recruit one million referrals but do not sell any products, then the recruiting members will not receive any bonus.

5. Commission given by the company to members of both magnitude and shape should be based on actual job performance directly related to the volume or value of the sales of goods or services product, and should be the main income of sharia  business partners .

6. Bonuses that given by the company to its members (business partners) should be clear in amount when the transaction (contract) in accordance with a target of selling goods or products and services are set by the company.

7. Shall be no commissions or bonuses earned passively without doing regular coaching and or sale of goods or services.

8. Giving commissions or bonuses by the company to members (distributors) do not cause ighra ‘

9. There is no exploitation and injustice in the distribution of bonuses among the first members of the following members

10. Membership recruitment system, a form of respect and ceremonial events that do not contain elements contrary to aqidah, syariah and noble character, such as polytheism, cult, immoral and others.

11. Every business partner recruiting member is obligated to provide guidance and supervision to the members that were recruited.

12. Not doing gaming money activity

In June 2012, the DSN-MUI issued a fatwa related to sharia MLM namely DSN-MUI Fatwa No. 83/DSN-MUI/VI/2012 about Multilevel Marketing and Umrah Travel Services.