Exploring ways how to earn money is a useful activity.
It is good that a person tries to become financially independent. This applies both for a person who is seeking to supplement the income from a full time job, as well when someone is on the lookout for occasional income.
it is important that your genuine attempt to improve your financial position does not backfire. Be aware that easy money, or effortless jobs, do not exist. Be very suspicious of any person or company that promises very attractive returns with minimal effort. Make your homework well before engaging in any work, to make sure that it is financially worthwhile.
It is very important to understand well the characteristics of certain job opportunities and their terms and conditions.
Those wishing to work from home, or with full flexibility, may have come across certain opportunities related to sales. These include jobs which are based on the business model where first you purchase the products from a company, normally located abroad, and then you resell such products to someone in Malta. This could normally happen by advertising your products on social media.
In this case, your monthly income will depend on two factors. It depends on the difference between the price at which you sell the product and its cost price. This has to be multiplied by the number of items that you manage to sell. Your gross income is not guaranteed and could be very volatile.
Although the job looks simple, your success is by no means guaranteed, especially if you have no prior experience in sales. Your monthly income can be very low since it depends on your ability to convince other people to buy your product. Once you exhaust your initial contacts, it can become increasingly difficult to attract more customers. Moreover, if the products cater for a very specific clientele and cost more than alternatives, the demand could be limited.
It is important to be very careful of claims made by the producer, particularly if these relate to health, such as in the case of weight loss or beauty products. Miracle cures or solutions do not exist. Do not engage in sales of products which might fail to meet the expectations of your customers. Do not sell products you would not use yourself because you are not convinced of their value.
Another issue to consider is that the company from which you are purchasing the products for resale does not have an exclusive relationship with you. This means that others can easily follow your example. For the company it does not matter whether the sales in Malta are carried out by one person or many. However, this may make a huge difference for you. If the sales pie is split among many sellers this means that each person is getting a small share of the pie. Translated this means that the commission you can expect to make from engaging in sales may be less than expected. Remember that since Malta is a small company there is a limit on the overall size of the market you can reach.
It is equally important to consider that the income you receive is on a gross basis.
You have to deduct the costs to carry out your activity, to establish the profitability of your venture, and whether it is indeed financially worthwhile. If you are distributing the products to your buyers, you need to factor in the cost of transport or mailing. Moreover, you may be required to be the first paying customer for the company before being able to sell to others. This would entail an initial outlay, and if you are unable to subsequently resell to others, you would end up with unwanted stock.
What may initially appear as a profit opportunity may end draining your limited financial resources.
Certain sales jobs also prescribe that your commissions could depend on your ability to recruit other people to carry out similar tasks as you. This technique could be marketed as offering you the possibility of improving your seniority within the sales structure and hence your income. Convincing people to join might be very difficult. Moreover, there is the risk that you end up losing friends if your offer is perceived by them as an attempt to earn money at their expense.
For your take home income you also need to consider any taxes which need to be paid. Not complying with national tax laws would bring problems, both in the form of financial penalties, as well as pose the risk that you lose any social benefit entitlements. If in doubt about your obligations it is always best to seek guidance from authorities, such as by contacting servizz.gov.mt.