Question Summary:
Referral incentive programme

Question Detail:

I have recently joined a scheme which works through recommendations. If I recommend a friend to shop at certain shops, not only do they give the friend cash back return, but I also benefit with a percentage of the amount of money spent. In this way if I recommend 10 friends to spend at these merchants I will create a network, from which I earn money through my friends' shopping. Then if my friends recommend further they also receive the same benefit. From an Islamic perspective, is there anything wrong with earning money in this way? Any advice will be much appreciated. 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
We understand from your explanation that you refer individuals to purchase certain items from merchants and receive a fixed percentage of the amount spent. In essence, you are subscribed to a referral incentive programme wherein you receive fixed benefits for referrals.
In principle, it is permissible for one to accept such benefits as this will be considered to be a conditional gift (Hibah/Tabarru Mashrooth).[1]
However we advise you to send the specific referral agreement/plan in order for us to issue a specific ruling.
And Allah Ta’āla Knows Best                                       
Ismail Desai,
Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.