Franchise Advertising Ideas
- Need More Franchisees?
- Franchise Advertising Overview
- Our Specialty Is Franchise Advertising
- How Do We Generate Leads?
- For Example
- Advertising Budgets
- Provide Value To User
- Gather Important Customer Info
- Gather Even More Info
- Facebook Works As Well
- Scalable Lead Sources
- Cost Per Sale
- Higher Quality Leads
- Need Help?
Need More Franchisees?
Are you looking for new, economical ways to advertise your franchise? Look no further.
The purpose of this article is two fold. First, it is meant to serve as an idea spring board, presenting ideas that you either may not have previously thought of or have been hesitant to implement. Secondly, this article seeks to help you make more informed decisions so that you don’t spend valuable time and money resources on ideas that may not yield you the results that you are looking for at a reasonable price.
Let’s face it, franchise advertising is expensive. Broker networks charge $20K or so per sale. Franchise Trade Shows cost around $5-$10K, with no guarantee of a sale. And, if you don’t know what you’re doing with online advertising, you can spend $200-$1,000 per lead trying to advertise on Google when it should only cost you around $30-$50 if you know what you’re doing.
So, let’s get real about about what works, what doesn’t, and what you should look for so you don’t spend an arm and a leg on mediocre franchise advertise advertising efforts.
Franchise Advertising Overview
As you start down the path of evaluating various franchise advertising channels, there are two primary Key Performance Indicators (KPIs) that you will want to be aware of.
The first KPI is Cost Per Lead (CPL). As a matter of fact, regardless of whether you are vetting potential vendors for SEO, PPC, Trade Shows, Franchise Portals, PR, etc., it would make sense to take a moment and ask the potential vendor what their average CPL is all-time across all of their franchise brands.
For our company, Lead PPC, for instance, we average a CPL of around $32. This is typically what you might find with Franchise Portals (which usually range between about $18-$70 per lead, depending on the vendor. But, within the PPC space (advertising agencies that drive leads online via Google Ads, Facebook Ads, Bing/Yahoo Ads, LinkedIn Ads, etc.), this is extremely low with many vendors averaging between about $50-$1,000 per lead.
The second KPI to really take a look at is Cost Per Sale (CPS). The gold standard within the franchising industry is probably Franchise Broker Networks, which average around $22,000 per sale. So, any vendor that is higher than this is probably not worth it, since you might as well just pay a Broker Network such as FranServe, FranNet, TES, IFPG, etc. to sell for you.
For our company, our Cost Per Sale range is usually between about $2,000 up to around $12,000 per sale. So, in general, we are lower than what you might find with a Franchise Broker Network. But, keep in mind that YOU will be the one selling, for better or for worse. So, if you’re team struggles to follow up with leads and sell them on the opportunity, you should expect to see a higher CPS than franchisors who contact leads within a few minutes and have a good sales team.
Our Specialty Is Franchise Advertising
We are an ad agency that specializes in franchise advertising. More specifically, we help franchisors identify potential franchisees for their franchise systems.
Franchise advertising is an extremely niche market. We have been advertising in the franchising space for a decade and been a part of helping the industry shift from offline events and trade shows to over half of all franchise sales being sold via the internet.
When it comes to franchise advertising, usually franchisors are limited by their budgets in regard to how much money they can afford to spend to acquire new franchisees. This being the case, it is extremely important that you put your initial franchise advertising dollars into mediums that generate not only leads but actual franchise sales for your business.
For this reason, we recommend that you focus your initial franchise advertising dollars on mediums such as Google and Facebook, which tend to be 1/2 to 1/4 of the cost of mediums such as Franchise Broker Networks. By concentrating your initial ad dollars in areas that have a high ROI, this will help generate additional revenue that can be used later to advertise in more expensive places such as the Radio, Trade Shows, and Franchise Broker Networks.
How Do We Generate Leads?
How do we do this? We generate leads online primarily through Google Ads and Facebook Ads. Some of our clients also advertise on the Bing/Yahoo and LinkedIn networks.
Google tends to have the highest quality leads. Facebook tends to have the cheapest leads and highest lead volume available. With Facebook, however, we recommend that you import your highest quality leads that you have ever generated into Facebook and use those as Lookalike Audiences, so that Facebook has a better idea for their machine learning algorithm as to who actually is a good candidate for your business.
Here’s an example of how this works. Suppose you are a juice franchise. Did you know that each and every day potential investors are going online and typing in keywords specific to your type of business, including terms like: juice franchise, acai franchise, best smoothie franchise, juice franchise opportunities near me, etc.?
Also, suppose you know that vegans and health food lovers are the people with the highest likelihood to buy a franchise. On Facebook, we can go after vegans with a high net worth who are interested in your particular type of franchise opportunity.
Advertising on these types of terms with Google is extremely easy; even showing up in one of the top spots doesn’t cost much and can be done on a relatively cheap budget ($500 – $1,000 / mo).
Provide Value To User
The key from there is to provide something of value back to the person who is evaluating your franchise opportunity. Having generated over 150,000 leads in the franchising space, we recommend giving away some type of a free guide in exchange for an email address.
Gather Important Customer Info
Once this email address is entered, we recommend asking for more detailed information such as name, phone number, zip code, liquid assets available, etc.
Gather Even More Info
If you like you can even go a step or two further from there and ask people to fill out an entire franchise application (about 20% of people will actually do this). And, you can even ask more qualified candidates if they would like to book an appointment with you right there online, using calendaring tools like Calendly.
Facebook Works As Well
Another great network to find prospective franchisees is Facebook. In fact, you can usually get leads on Facebook for between $10-$30. The key is to target people in your desired locations who have both money and an affinity toward your industry.
Scalable Lead Sources
The great thing about dialing in lead sources such as Google and Facebook is that you can expand them over time, and they tend to be cheaper than other sales sources, such as broker networks.
Cost Per Sale
We find that it costs between about $2,000 – $12,000 in ad spend to acquire a new franchisee. This is cheaper than broker networks, which usually cost about $20,000-$30,000 to get a new franchisee.
Higher Quality Leads
Lastly, the feedback that we get from our customers is that because our leads are exclusive to our clients, they are able to get in touch with a high percentage of them, as opposed to franchise portals, who resell their leads between 5-15 times on average.
If you are interested in using our services, please let us know. We would love to help you!
Entrepreneur with a focus on Lead Generation, Google Adwords, Bing Ads, and Conversion.