Pyramid Schemes

Q: I wanted to find out if the pyramid scheme is halaal. I join the group, pay a fee and recruit people to join. For each person I recruit I get paid. So each person pays and the more people who are under you the more you earn. There are no products involved.

A: These pyramid schemes are not permissible in Islam because in many of them one earns money out of the investment of others without actually laying out any capital. This falls under the category of ribaa or interest.

It is therefore, best that we abstain from all types of schemes of such nature

And Allah knows best

Mufti Siraj Desai