Binary MLM where the MLM company deals with a number of useful products (clothes, books , health related products) including insurance policy. To enroll in it, one has to purchase some products only one time.

Commission paying system is: Every one will get a fixed amount if he enrolls two new members (left and right to him (its a term used)) and the amount will increase with the number of newly joining members in left hand and right hand side of the man. It may be direct joining of new people by him or by people in his down-line, without affecting down-line's commission. To get commission every body has to maintain 1:1 ratio. When there will be a huge team then there is a maximum pay out limit that is fixed.

Multi-Level Marketing Structure:

Wikipedia

Is this network marketing, in this form, is permitted in Islam?

Binary multilevel marketing (MLM) is where the MLM company deals with a number of useful products (clothes, books , health related products) including insurance policy. To enroll in it, one has to purchase some products only one time.

Commission paying system is: Every one will get a fixed amount if he enrolls two new members (left and right to him (its a term used)) and the amount will increase with the number of newly joining members in left hand and right hand side of the man. It may be direct joining of new people by him or by people in his down-line, without affecting the down-line's commission. To get commission everybody has to maintain a 1:1 ratio. When there will be a huge team then there is a maximum pay out limit that is fixed.

(Image source: Multi-Level Marketing Structure, Wikipedia)

Is this network marketing, in this form, is permitted in Islam?