Finding a sales agent in Germany: what manufacturers should know before they sign.
As a buyer I met a lot of sales agents. Some of them I was always happy to see, because they only brought me things that made sense for my range. Others I avoided, because every visit was a catalogue and a hard sell. For a manufacturer, the difference between those two is the difference between growing in Germany and wasting a year.
Full disclosure first: local representation is part of what I do with LUMVEO. So I have an interest here. But I would tell you the same things if I did not, because I saw from the buyer’s chair how much a good agent can open, and how much damage a wrong one can do. This is how it looks from both sides of the table.
“Sales agent” is not the same as “distributor”.
Many manufacturers use the words as if they meant the same. In Germany they do not, and the difference matters for your money, your customers and your contract.
An independent person or company who looks after your customers and brings in orders in your name. The customer buys from you, not from the agent. You keep control of prices and customers, the agent is usually paid by commission.
Buys your goods, holds stock and sells them on its own account. Takes more risk, wants more margin and usually exclusivity. You give away a big part of the customer relationship.
Somewhere in between: takes care of import, stock and registrations, and sells through its own people or agents.
An employee or a small German company of your own. Most control, highest fixed costs, and only worth it when the business is already there.
A simple question helps: does somebody need to hold stock and do the paperwork in Germany? If yes, you probably need a distributor or importer, maybe with agents on top. If no, an agent keeps you much closer to your customers.
They do not sell your product. They sell the buyer’s next good decision.
A buyer gives an agent time because the agent saves them work. Good agents know the range, know what is missing, and only bring products that fill a real gap. That trust is what you rent when you work with them. It took them years to build, and they will not risk it for a product that is not ready.
So the question is not only “will this agent take my brand?” It is also “is my brand ready for this agent’s buyers?” Price, registrations, stock, samples and a clear story should be in place before the first visit.
A German agent contract is not just a sales deal.
I am not a lawyer, and you should get one before signing. But these are the points I have seen surprise manufacturers from outside Europe again and again:
German law (and EU law behind it) gives commercial agents rights that many foreign companies do not expect. Several of them cannot be removed by contract, even if the contract says another country’s law applies.
When the contract ends, the agent can claim compensation for the customers they built up for you, up to roughly one year of average commission. This cannot be excluded in advance. Plan for it from day one instead of being surprised later.
The law sets minimum notice periods that grow with the length of the relationship, starting at one month in the first year. A handshake end is not how it works here.
Depending on the contract, the agent can be entitled to commission on later orders from customers they brought in, or from their territory, even when the order comes in without them.
None of this is a reason not to work with an agent. It is a reason to start with a clear contract, a clear territory and clear goals, and to choose someone you actually want to work with for years.
What I would look for if I were in your shoes.
- They already sit in the right rooms. The most valuable thing an agent brings is not hours, it is relationships with the buyers you want. Ask which retailers and resellers they visit today, and with which products.
- Their other brands fit, but do not compete. A good agent carries several brands that make sense together for the same buyer. That is why buyers make time for them. A direct competitor in the same bag is a warning sign.
- They tell you what is wrong. An agent who loves everything about your product will not survive the first buyer meeting. You want someone who tells you before the buyer does that your price is too high or your packaging will not work.
- They report. Who did they see, what did the buyer say, what happens next? Agree on a simple monthly report. No report usually means no visits.
- They understand your category. Selling chargers to an electronics buyer is different from selling furniture to a design store. The agent should speak your buyer’s language.
Commission only sounds cheap. It is not always fair.
Most agents work on commission. That is fair for an established brand that already sells. For a brand nobody in Germany knows yet, the first months are pure building: samples, presentations, follow-ups, often without a single order. Good agents know this, and many will ask for a small fixed fee or a start budget for that phase.
If an agent takes a completely unknown brand on commission only, ask yourself how much time they will really give it next to the brands that already pay them.
Looking for someone on the ground in Germany?
That is part of what I do: representing a small number of brands I believe in, with buyers I know, in categories I understand. I am selective on purpose, because my name is on every product I bring to a buyer. If you want to find out whether your product and I are a good fit, let’s talk. And if we are not, I will tell you who might be.
Marco PenningFounder, LUMVEO · Hamburg
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Short answers.
How are sales agents in Germany paid?
Usually by commission on the orders they bring in. For new brands, many agents ask for a small fixed fee or a start budget for the first months, because building a new brand takes time before the first orders arrive. Commission levels depend heavily on the category and the margin in it.
Where do I find a sales agent in Germany?
Trade fairs, recommendations from retailers, industry associations and agent platforms such as the one run by the CDH, the German association of commercial agents. The best agents are often recommended by the buyers themselves.
Can I end a sales agent contract any time?
No. German law sets minimum notice periods, and the agent may be entitled to compensation for the customer base they built. Get local legal advice before signing and before ending a contract.
Is a sales agent or a distributor better for a new brand?
It depends on whether someone needs to hold stock in Germany. If you can deliver to customers yourself or through a logistics partner, an agent keeps you closer to your customers. If you need local stock, registrations and invoicing, a distributor or importer may be the more practical start.
This is my experience and view, not legal advice. Agent law has details that depend on the individual contract, so always get local legal advice before signing or ending an agent agreement.