Findings by Salam Watandar, based on interviews with 25 youth across 11 provinces of the country, show that the majority of them lost part or all of their capital after investing in online platforms and network marketing companies—without receiving the promised profit.
Network marketing is a type of business activity in which individuals earn income not only by selling products but also by recruiting new members. However, some experts argue that certain schemes focus more on recruiting participants and collecting investments than on actual product sales. Due to a lack of transparency and regulatory oversight, the risk of capital loss is significantly increased.
In this report, 25 youth—including 17 men and 8 women—from Kabul, Kunar, Kapisa, Kunduz, Badghis, Baghlan, Faryab, Herat, Helmand, Jawzjan, and Panjshir provinces were interviewed. Among them, 16 had invested in online investment platforms such as “Unique Finance,” “AgiGPT-QT4,” and “Goldbase,” while 9 others had participated in network marketing companies such as “Panberes” and “Ledora.”
The findings indicate that investment amounts ranged from 20,000 Afghanis to 1,700 US dollars. Interviewees stated that lack of sales, inability to recruit new members, and the unclear organizational structures of these programs were the main reasons for financial losses and failure to earn profits.
Zohra, a 34-year-old from Herat who entered this activity due to economic hardship and promises of quick income, says,
“The main reason I joined was financial problems. I was told that this work provides quick income and that one can earn from home without going outside. As a married woman responsible for household duties, this type of work seemed suitable for me.”
Shir Shah, a 30-year-old from Kunar, also says he entered the activity in hopes of improving his financial situation and earning more income, but ultimately faced with financial loss.
“I wanted to earn more in a short time and change my life, but later I realized I had made a mistake,” he adds.
Ahmad Reshad, a 30-year-old from Jawzjan, who invested 1,700 US dollars in an online platform at the encouragement of a relative, lost all of his capital shortly afterward. He explains,
“My cousin, who lives in Belgium, encouraged me and told me that if I invested in this site, I would earn a profit of 300 to 400 dollars per month. I trusted him, so I invested; but after a month, all my money was blocked and the company disappeared.”
Enayatullah, a 32-year-old from Panjshir who left a network marketing company after one year due to failure in sales and team building, says,
“I joined this work on a friend’s encouragement. Before starting, they conducted online seminars. However, because the products were expensive and I could not build a network or succeed in sales, I ended up losing money instead of making a profit.”
Lack of legal guarantees
16 of the interviewed youth involved in online investment and network marketing stated that one of the main reasons for losing their money was the absence of formal contracts and legal guarantees. Due to the lack of clear addresses and accountable company officials, they were unable to pursue or recover their lost capital.
Ahmad, a 28-year-old from Herat, says, “I tried to recover part of my money, but I was unsuccessful because there was no official contract and I did not have any solid documentation.”
Mirwais, a 25-year-old from Badghis, says, “We did not know the officials running the program. There was only a messaging page that did not respond. I think it was a robot. We had no official documents and could not take any action.”
However, some companies operating in this sector say that their activities are legal and registered, and that part of individuals’ income comes from actual product sales.
Abdul Basir Ghafoori, head of one of the branches of the “Panberes” company, says that the company is official and licensed.
“We operate in two areas: product sales and team building. Sales represent active income, and team building represents passive income. Individuals are provided with information, and if a product is not sold, they can use it themselves,” he adds.
Unemployment and advertising: Two main factors
Economic experts say that rising unemployment, limited job opportunities, and extensive social media advertising are among the main reasons youth are attracted to such activities.
According to them, in order to prevent financial losses among youth, it is necessary to create job opportunities, support small-scale entrepreneurship, and establish clear regulations.
Shaker Yaqubi, an economic expert, says, “To prevent financial losses among youth, it is necessary for the government and relevant institutions to focus on creating real job opportunities, supporting small-scale entrepreneurship, providing technical and vocational training, and improving access to financial resources. In addition, establishing clear regulations to monitor business activities, along with raising public awareness about the risks of pyramid schemes, can play an important role.”
Iraj Faqiri, another economic expert, says, “Individuals often engage in these activities because of the convenience of technology. However, due to a lack of stability and insufficient knowledge and skills in digital transactions, a person may initially make a relative profit, but later, through repeated investments or subscriptions, face significant financial loss.”
From economic pressure to emotional marketing traps
Social experts also believe that economic pressure, unemployment, and family problems have pushed many youth toward network marketing activities.
Shoaib Ahmadi, a sociologist, says “Economic pressure and family problems push youth toward such jobs. Deceptive advertising and success stories of others also encourage them.”
According to psychologists, the attraction of youth to “quick income” promises is more of a psychological phenomenon than an economic one, as these systems rely on individuals’ emotions and cognitive biases.
Nasratullah Frotan, a psychologist, says, “After failure, individuals face serious psychological consequences such as reduced self-esteem, financial anxiety, feelings of shame, and isolation—especially if they have recruited others into these programs.”
Salam Watandar attempted to obtain comments from the Ministry of Industry and Commerce and the Ministry of Communications and Information Technology regarding network marketing companies and online platforms. Despite repeated follow-ups, no response was provided up to the publication date of the report.
However, experts warn that weak oversight, low public awareness, and widespread online advertising have created conditions that allow such high-risk activities to expand—an issue they say requires urgent attention from relevant authorities and the establishment of clear regulatory frameworks.
Reporter: Zarafshan Sharifi
