Redefining Network Marketing: A Maqashid Shariah-Based Business Model For Community Prosperity

Abstract

The HENDRA model was developed in response to the challenges of conventional Multi-Level Marketing (MLM) systems, which are often exploitative and misaligned with Islamic principles. This study aims to formulate an MLM business model rooted in maqashid shariah to enhance community welfare. A qualitative approach using Grounded Theory was applied to explore the empirical experiences of MLM practitioners and to formulate ideal pillars for an Islamic business system. The research identified six core pillars of the HENDRA model: Harmony, Ethics, Network, Direct Selling, Rahmatanlil 'Alamin, and Trust (Amanah), each reflecting the comprehensive values of maqashid shariah. This model not only addresses market demands but also serves as a tool for empowering the Muslim community through ethics, spirituality, and blessings. In contrast to traditional MLM models that emphasize profit over values, the HENDRA model integrates ethical and religious dimensions, providing a sustainable and value-driven alternative. Such integration aligns with previous findings that stress the importance of ethical constructs in Islamic business (Dusuki& Abdullah, 2007) and the critical role of maqashid shariah in economic systems (Chapra, 2008).