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Is Affiliate Marketing Haram (Forbidden)?

December 28, 2011

Question

Assalamu alaikum! Currently I own a membership site which sells traffic. I pay free affiliates 10% on sale and upgraded members 50% on sale. Upgraded members actually purchases traffic and they can also earn more money on sale when compared to free members. Is there anything wrong on paying upgraded members a lot? Is it involved with riba? Please clarify my doubt.

Answer

Wa AlaikumuSalam,

There is nothing wrong with what you have explained. Riba (i.e. interest) is not applicable in your case. Riba is basically a fee on a financial loan. This can be small or great, as long as there is a charge exceeding the original loan amount and is a percentage related directly to the money borrowed. Your circumstances do not create a borrow and loan situation; therefore, it is not relevant to the prohibition of Riba. Additionally, nothing in your business model, from what you have explained, goes against the Shari’ah.

I hope this helps.

God knows best.

Filed Under: Economic Issues, Halal and Haram, Q & A

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