Legitimacy of Monetization in Network Marketing (Reviewing the difference between the views of sources of emulation and the Guardian Council)

Network marketing is a new method of distributing goods that claims to be different from pyramid firms and its development is generally in the interest of the economy. In network marketing, any marketer earns money from two direct sales methods (retailers) and a marketer. In the retail market, the marketer will sell the goods at a discount from the company and without any discounts to the customer, and will pay off his income. In the second method, with the direct absorption of new marketers and the sale of the product by them and their sub-group, they receive a part of the price of the product sold (Commission). The result of the legal jurisprudence analysis, which is performed by a descriptive-analytic method, shows that the retail trade and the resulting income are consistent with the Sale with the right to terminate, and is correct and lawful. In the second method, if the commission received from the set of levels against the practice of introducing marketers in the first level is correct and lawful. But this method can not be defended in terms of economic function. In this scheme, the most profitable participates, and with the saturation of the market, a large number of marketers do not achieve their desired endeavor. Produced companies, without raising the quality of the product or lowering the price, are motivated by promise of high income earners in marketers and increase their share of the market. It is suggested that by limiting the income levels of this distribution method up to four levels) and assigning it to Iranian goods, they should be allowed to operate in a limited manner and after some time feedback should be evaluated.