- There are between 7 million and 13 million freelancers in Germany.
- As of January 2020, there were 45 million people in employment in Germany.
- According to World Bank data, 10.15% of employed persons in Germany were self-employed.
Using these two pieces of data, the number of self-employed workers in Germany can be calculated as follows:
Total employment = 45 million
Self-employed people = 10.15% of total employment
No. of freelancers = 13 million (considering the higher value to allow for the growth in the number since the data is from 2016).
No. of self-employed people = 45 million * 0.1015 = 4.6 million
Adding self-employed people and freelancers = 4.6 million + 13 million = 17.6 million
- Hence, there are 17.6 million self-employed people and freelancers in Germany.
- The TAM for Kontist can be found by using the price at which it is offered. Kontist premium and Duo come at a cost of €9 and €12 respectively. Considering an average price, Kontist is offered to people at €10.5. This price can be used to calculate the TAM for Kontist.
No. of people that would potentially use Kontist = 17.6 million
Pricing = €10.5
TAM = 17.6 million * €10.5 = €185 million
- Hence, the total addressable market for Kontist using the bottom-up approach is €185 million.