How To Get Franchise Leads
Franchise lead generation is unique. It is easy to spend a lot of money on franchise brokers and lead generation with few results to show for it.
Rather than blow thousands on leads and broker commissions, we recommend taking a second to think about what it is that you really want. In other words, begin with the end in mind.
Critical questions include: Where do I want my new franchise locations to be? Who is my ideal franchisee? How much am I willing to pay for a sale? How do I ensure that my franchisees are successful? And, why am I franchising as opposed to slowly growing corporate owned stores?
The more focused that you can be on identifying your target geographic locations and gain a better understanding of who you actually want to be franchisees within your system, the easier it will be to both enjoy the process of growth and provide a solid end product for both your franchisees and your end customers.
Once you are ready to start driving leads, understand that here are some common places that leads are generated: Existing Customers, Trade Shows, Online, Portals, and Brokers.
1. Existing Customers
Existing customers are by far the cheapest way to acquire new franchisees. A simple sign in your shop can go a long way. Also, if you have a customer name, email, or phone number list, you can easily upload that to Facebook and run a small campaign at $5-$10 / day going after that audience with relatively good results.
2. Franchise Trade Shows
Going to franchise related trade shows is one of the more traditional ways to acquire new franchisees. These can be expensive, but there are still a lot of people who go shows like IFA to learn more about various franchises.
These days roughly half of all franchise sales originated online. That means that more and more, investors are starting their research online through search engines like Google and Bing as well as gaining awareness through social media platforms like Facebook and Instagram. If you advertise correctly online, you can drive great quality leads for around $30 a piece. This is what we do as an ad agency.
4. Franchise Portals
Online portals drive a huge chunk of the leads in the franchising space. Some of the top portals include Franchise Gator, Franchise Direct, Entrepreneur, and America’s Best Franchises. The cost per lead on these also around $30, but the down side is that these leads are often sold 5-15 times, so sometimes it’s hard to get a hold of fresh, new leads that haven’t been contacted by others.
5. Franchise Brokers
Franchise brokers are another way to go. It costs roughly $22,000 to sell a new franchisee via a broker network. But, if you can get the right network such as The Entrepreneur’s Source or FranServe selling for you with some internal champions, you can really ramp up your franchise units in a hurry.
We’d love to talk with you about your franchise development lead generation needs in more detail!