How is network marketing developing in Germany

Germany, known for its capabilities and high standards in all areas of business, is the largest network marketing market in Europe. According to the German Direct Selling Association (BDD), in 2023 the total revenue of this sector exceeded $22.6 billion. But what lies behind such success and what are the peculiarities of MLM business development in the country?

Germany's Economic Dynamics

Germany has a highly developed market economy, ranking first in Europe and third in the world in terms of nominal GDP. In April 2024, the country's GDP reached $4.59 trillion, with a GDP per capita of $54,291. According to the German Central Bank's forecast, GDP is expected to grow by 1.5% in 2025.

Under the influence of a gradual decrease in energy prices in Germany, a reduction in inflation to 1.87% was recorded in the previous month, creating more favorable conditions for stable business development and increased profitability.

As for the population of Germany, the country currently has 84.6 million inhabitants. According to a study by DIW Berlin, about 60% of working Germans are not satisfied with their income level and are looking for additional sources of earnings. This makes it easy to attract distributors to MLM business in Germany.

To attract more investments and stimulate business environment development, the German government provides comprehensive support to small and medium-sized enterprises, which account for over 90% of all businesses in the country. Grant programs, simplified tax and credit systems, as well as business advisory organizations have been established in the country.

Network Marketing Trends in Germany

Network marketing is a legitimate business model in Germany that has been dynamically developing for several decades. The active growth of MLM companies in the country is largely driven by the digitalization of the industry. Despite personal meetings still being a common sales method, Germans are increasingly purchasing MLM products through various online channels and social networks.

According to Data Reportal, 72.6 million Germans actively use social networks, allowing MLM businesses in Germany to find customers and partners much faster.

According to the BDD report, there are already more than 909,000 people working in network marketing in Germany, and by the end of 2027, this figure is expected to grow to 998,500. 48% of Germans join MLM companies to increase their earnings, while another 43% do so out of interest in the product.

German consumers are known for their demand for product quality. Therefore, for successful development of an MLM company in Germany, it is crucial that your products are certified and meet high quality standards.

Among the most popular niches in the German network market are: home goods, which account for over 11% of the country's MLM companies, food products - 11%, cosmetics and personal care - 10%, health - 8%.

Another feature is the popularity of environmentally friendly and organic products. Germans value companies that adhere to the principles of sustainable development and environmental responsibility. Therefore, network companies offering organic products have a significant competitive advantage in the German market.

MLM Legislation in Germany

Since 1967, the Direct Selling Association (BDD) has been active in Germany. BDD created a Code of Conduct for MLM companies to protect the industry's interests and avoid the creation of any illegal pyramid schemes.

In order to develop the direct sales industry in Germany, BDD has developed an online course to enhance the qualifications of distributors and a guide for MLM project founders. The guide describes the legal requirements for such companies and provides practical advice on scaling the business.

The MLM industry's activities in Germany are also strictly regulated by the local government. Network companies in the country must comply with the "Unfair Competition Act," which prevents consumer deception and overly aggressive sales methods, and the "Consumer Protection Act." Additionally, companies must enter into contracts with their distributors that clearly and transparently outline all collaboration conditions, reward structures, bonus payment terms, and termination of collaboration.

Summary

Thus, the network marketing industry in Germany continues to grow steadily, attracting more distributors and remaining one of the most promising directions for network business development in Europe. However, to successfully launch your own MLM company in this country, it is important to choose the right product for implementation, create a transparent marketing plan, familiarize yourself with all legislative requirements, and obtain the appropriate license.