Category: Franchise Sales

Franchise Lead Generation via Social Media

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The following article about franchising and social media is being reposted with permission from its author, Christine Mudd, Founder of Frandeavor, a franchise development company dedicated to growing franchisors through effective lead generation, in-market franchise sales, and real estate assistance. Christine’s article reinforces many of the principles discussed in franchisEssentials recent series Franchise Development via Social Media.

unicornI Sold A Franchise To A Unicorn
as Posted on Frandeavor Blog April 29th, 2009

I sold a franchise to a Unicorn. Yep, last week I closed a lead that was generated from a blog posting: AKA: Social Media. We’ve all heard stories of mythical leads generated by “free” postings on blogs and social sites, but until last week I hadn’t actually seen one.

If you are like me, you’ve got your twitter account, Facebook fan page, linkedin profile, but how do you convert these medias into active live leads?

1. Make sure your website is rock solid. All social media efforts point in one direction, straight back to your website. As a result, your franchise offering needs to be clear, easy to navigate, and compelling. Don’t waste one dime or one minute on social media until your website is powerful enough to convert any traffic into a lead.

2. Social Media is not free. You need a staff member and a brand champion to lead your social media efforts. This person needs to be a skilled writer, fluent in the language of social media, and they need to be an authentic FAN of your brand. You need to pay for their dedicated time in executing your social media plan. Don’t assign your social media efforts to the intern or the receptionist; assign it to a key member of your team.

3. Know your target franchisee. You’ve got to know everything about your target franchisee. By identifying where your target prospect shops, listens to music, and gets their news and hobbies, you can easily target the right blogs and social sites to engage in conversation.

4. Finally, be authentic. The great thing about social media is that it’s the people’s media. It’s not sponsored by Coke, or littered with pop ups. Social Media is like-minded people sharing ideas on a given topic. As a result, if you post a sales pitch or canned response readers will see right through it. Be passionate, be relevant, and you’ll become a member of the community.

Christine Mudd joined the franchise industry in 2000 as an Executive with Quiznos Sub. Since that time, Christine has worked in all aspects of franchise development including brand expansion and lead generation, franchise sales, real estate, and construction. Christine held many positions with Quiznos Sub including Vice President of Development and Vice President of Non-Traditional Development and Operations. In March of 2008 Christine founded FRANDEAVOR.

Social Media to Franchise Sales: Fantasy or Reality?

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Let’s assume you’ve followed the advice and quidelines in the first three segments of the series on Franchise Development via Social Media. You’ve established your “Virtual Meeting Room” as a Facebook group page and requests to join are submitted everyday. Customers of your franchisees are joining and posting comments about how much they enjoy the experience at the franchise locations. Franchisees have posted some testimonials that really do complement the Founder’s video about his passion and vision for the business. You’re even surprised at how many corporate and franchisee employees have participated and posted comments and photos. All-in-all, you’re proud of the Facebook page and proud of the effort put into developing and maintaining the page.

You’re now looking at you’re social media strategy and you preview the company blog. You feel the content may be all over the board, touching on franchise development, expansion into the Southeast, a new franchisee in Santa Fe, community activity at the franchise location in Seattle and even an article submitted by one of your franchisees about one of his long-time customers, but then you stop a realize how much this menagerie of topics, text, graphics and photos portrays the true face of the franchise concept. You make a note to have your social media administrator issue a press release on just that thought.

twitter imagesA quick review of Twitter puts a smile on your face as you see the number of people following the concept increasing everday. Then you recall the blog stats revealed a sharp increase in visits from Twitter. Wow, there’s a positive trend here we need to watch. Come to think of it, you’ve noticed an increase in franchise inquiries and wonder if there’s a correlation here. You then look closely at the new people following on Twitter and you backtrack to the company’s recent posts and discussions in several LinkedIn and Facebook groups that just so happen to consist of educators, and realize many of the new franchise inquiries have educational backgrounds. Hmmm, you decide to cross-check the names against LinkedIn profiles and smile again as you notice they’re members of LinkedIn, are in the specific groups you’ve targeted, and many have actually participated in the group discussions where the social media administrator posted some very interesting discussions about careers after teaching and about moms returning to the workforce or exploring career alternatives. It sure is coming together.

You note there are some qualified candidates frequently visiting your Facebook group page, checking out the same information repeatedly and posting specific questions about your franchise opportunity. You’ve even noticed some candidates posting comments about the customer testimonials and some personal messages about the Founder’s video. Now what? Certainly this social media thing isn’t magical that it’ll actually close a few franchise deals, right?

personaltouchJust like you’ve integrated traditional marketing strategies with social media strategies, you need to be integrating personal interaction as well. However, instead of an aggressive, focused sales approach, the interaction should be subtle and guiding. Use the social media tools to make your points and make the experience enjoyable and interesting. Your candidates will most likely marvel at the new technology and feel comfortable learning about the technology AND the franchise concept. And yes, they’ll be more comfortable with you and be fully at ease working through disclosure and the finer points of the concept itself.

The rest comes down to guiding your candidates towards making a decision as it will now fully be an informed decision that has been validated by the social media experience AND the franchisees the candiates have contacted. Hmmm, your franchisees actually feel more part of the franchise sales process than ever before. You smile again as you realize it did make the process easier than in the past. Yes, it’ll be very nice to achieve your franchise development goals once again. Maybe next year, you’ll actually exceed them!

Fantasy or Reality? Achieveable or Not? Easy or Hard? That’s up to you and your team. It comes down to personal accountability, diligent execution of your strategy and plan, professional handling of franchise candidates at all times and above all, NO SHORTCUTS!

Personal accountability is necessary in monitoring your social media activity, updating blog content and keeping things fresh. Nobody will stay at a dull party, right? Putting off things for tomorrow that should be done today is just not acceptable. It becomes a reflection of how you handle even the simplest things and the a lack of urgency and poor attention to detail will translate into how you’ll handle the franchise sale and ultimately, your franchisees.

Diligent execution of your strategy and plan is essential. Certainly, you’ll make adjustments along the way. But your plan is your roadmap. Follow it as closely as possible. Allow extra time and resources as necessary for roadblocks and detours, but stay on course. Monitor your progress. How fast did you get from point A to point B. How fast did a candidate get from point A to Point B? Is the process slowing down or speeding up? Why? Do you need to do some system maintenance to the social media vehicle? Maybe your videos aren’t playing correctly? Maybe the photos aren’t laoding fast enough? Maybe it’s time to bring in a technician so you can get back on the road as quickly as possible?

Professional handling of candidates means working with each candidate as you would want to be worked with and treated if you were the one on the verge of making a substantial investment, maybe putting your life savings on the line! It means converying a sense of urgency when asked for information. It means paying attention to detail in something as simple as pronouncing their name correctly all the way to something complex such as full disclosure of the franchise concept. And, it means having the right attitude and conveying the same at every moment of working with the candidate at every point of “contact” including by email, on the phone, in-person, and yes, in the virtual world. Keep in mind, at all points of contact, your attitude will shine through so make sure it shines bright and your franchise future will shine bright as well!

Thank you for travelling with me on this exciting, eye-opening journey. It will be an experience you should be able to relive everytime an individual expresses interest in your concept. At that point, it’s time to smile, focus on the resources you’ve invested, the time you’ve dedicated, and the vision and passion you had when you first started in franchising, and share it with your candidate just as you would share your life with a new addition to your family.

If you have any questions or comments, please feel free to submit them in the space below. If you would like to contact me directly, my email is segreto.paul@gmail.com. In any case, I will respond promptly.

Integrating Social Media with Traditional Franchise Marketing

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The first segment of Franchise Development via Social Media described how to establish the “Virtual Meeting Room” as the online site to enable interested parties to gather and share information about your franchise concept. The second segment of this four part series, explored the path of guiding an interested party through the virtual meeting room, enhancing the experience with videos, photos and a multitude of Web 2.0 tools, until the individual transitions from general to specific interest and evolves into a franchise candidate. At this point, the franchise candidate is primed to move through the franchise sales process and make an informed decision about his or her entrepreneurial future. Interacting with the candidate throughout the time spent in the virtual meeting room enables your executive committee to make an informed decision as to whether or not the candidate should be awarded a franchise in your system.

anne-indecisiveNot convinced that a social media strategy will help you achieve your franchise development objectives? That’s understandable as it is certainly new, and as such, is difficult to measure for complete efficiency and effectiveness. Basically, there really isn’t anything to measure it against. So, if it doesn’t work, for whatever reason, you need to be prepared and have a back up plan. Is that your thinking? If it is, you’re partially correct in thinking this way. I say, partially, because you should transition into any new marketing approach, and the best way to do so, is to integrate the old with new, the traditional with the innovative.

I also say, partially, because a back up plan, running simultaneously, is a double expenditure and as such may cause you to shortcut the new strategy justifying your decision as you being more comfortable with the old strategy anyway. But keep in mind, the old has been losing its effectiveness over the past few years and today’s franchise candidates are trending away from old methods of exploring business opportunities so change is necessary. Fortunately, you can move into social media at your own pace and slowly transition away from traditional strategies while maintaining the total marketing efforts necessary to achieve your objectives.

Now, let’s look at some of the traditional marketing you might have used in past franchise development efforts and see how you can integrate the same with social media. Over time, you may transition completely out of the traditional methods or may opt to keep some in place, at reduced levels than in the past, and as dictated by the franchise development results achieved by the total efforts.

franchises_availableTraditional strategy: Tapping your current franchise network for customers that may be interested in your franchise concept. Various costly marketing tools include newsletters, post cards, in-store signage and printed materials. Approaching customers should be effective as they’re basically the low-hanging fruit that should be easily picked. Customers know the concept and are generally satisfied with the product or services. They’ve seen how busy the franchise unit is and have experienced the growth of the brand in the market.

Social media strategy: Invite franchise customers to the company’s social networking site and encourage them to participate. On the site, they’ll see videos and photos as we’ve described in parts one and two of this series. The effectiveness of this interaction is far stronger than introducing customers to the possibility of owning their own franchise through cumbersome print materials that get left in the back of the car or get discarded. Certainly the interactivity of the social network site blows away the message being told in print.

Traditional strategy: Advertising in local and national media for individuals interested in small business ownership, franchising and hopefully, your franchise concept. This is an expensive proposition as print advertising is very specific to a local market and multiple markets may be necessary to grow effectively. Or, the national publication costs are cost prohibitive for the size of your concept.

Social media strategy: Blogs are today’s media. Blog writers are today’s journalists. Through tags and various Web 2.0 tools (widgets), content is spread across the internet to multitudes of bloggers that ultimately wind up discussing and promoting your concept. As discussed in previous parts to this series, social network groups can be targeted to attract franchise candidates according to the ideal franchise profile you’ve created. This makes your actual sales efforts more concentrated to actual qualified candidates as opposed to dealing with the swarm of tire-kickers from print media.

lemonTraditional strategy: Portal websites became very popular as the internet gained steam in both popularity and daily usage. Unfortunately, now there are so many portals that regurgitate leads across the internet that many portal leads have been contacted by 10-20-30 different “franchise experts.” This has created a “used car salesman” effect that has actually turned people that may have been interested in franchising, totally against the industry.

Social media strategy: Similar to the strategy identified above as the alternative to advertising in local and national media. And, instead of an interested party being directed to specific information, the social media effort gradually presents the facts and information about the franchise while encouraging interaction with the entire franchise family. This goes a long way towards building trust, an essential component to the franchise sale.

Traditional strategy: Personally, I believe franchise expos and tradeshows are quickly becoming a thing of the past. First, it’s just too expensive to send a team of representatives to man a trade booth in some city outside the city where the corporate headquarters is located. Further, people are intimidated by salespeople and prefer instead to search for opportunities online in a non-intimidating environment, and at their own pace.

Social media strategy: With the wealth and breadth of information available online, an individual’s computer is in essence, a virtual tradeshow or franchise expo. Why should an individual interetsed in franchising go anywhere else? However, it’s not good enough to just have a website. A website is static and two-dimensional. Instead, a blog and social network page, again as we’ve previously described, is essential to stand out from the crowd and create an interactive forum where the franchise candidate can learn and share information towards making an informed decision. Again, at his or her own pace and without feeling intimidated.

Non-traditional strategies: There’s a multitude of fairly new strategies that have been utilized in franchise development efforts. One, email marketing, is effective to an extent. Email blasts have become very common and have had a relative level of success. Except, it’s starting to become stagnant as more and more companies have launched extensive email campaigns and the excitement of yesterday is gone today. Most people now look at email marketing as spam and actually block it whenever and however they can.

email-vs-social-mediaSocial media strategies: Welcome to video email marketing. Or, as is commonly referred to as vidmail marketing. Actually, let’s call it email on steroids! Videos, an essential Web 2.0 tool, can be transfered to blogs and social networks to enhance the experience and more importantly, convey a consistent message in a dynamic form. People remember 10% of what they read. 20% of what they hear. And 30% of what they see. But, remember 50% of what they see AND hear together. So, which is it, email or vidmail?

A recent blog post on The Buzz Bin, defined some basic “musts” for fluid integration of social media. They include:

•Ensuring overarching value proposition and related communications are available in social web when dialogue naturally permits
•Cross-promotion of URLS and calls-to-action through web, mobile and print media for giving, tell-a-friend, webinars, etc.
•Spotlight third party coverage from blogs in the press room
•Advertising: Word of mouth is buoyed by advertising, so social media efforts should be tied to ad campaigns for print, online and keyword marketing. “Connect on Facebook” and other similar calls-to-action should start becoming common aspects of your ad campaigns.
•Public relations: Integrating willing online influencers as part of your outreach is essential.
•Emails: Any email sent from an organizational property should also include a call-to-action for the social web. Think about this: People reading email are already online.
•Website: Prominent first screenview promotion of social media properties needs to be developed for the 1.0 site. We recommend a clean badge or clearly delineated text.
•Cross promotion of social web activities. Badges should link to a portal site that unites all of your social media properties (once you develop them). Then use the portal as the home page and calls-to-action site for all online activity

Certainly, this list is far more technical than the explanations provided in this series but they correspond very well and should be used as a guide when executing your plan to integrate social media with traditional strategies.

Tomorrow, we’ll be closing out the series with Part 4 of Franchise Development via Social Media. Our last segment will tie everything together to make increased franchise sales a reality as opposed to a vision, or fantasy. We’ll also touch on basic sales skills necessary to add the personal touch that is so essential to closing the sale.

In the meantime, please list your questions and comments in the space provided below, and I will respond accordingly prior to releasing the last part of the series.

Local Franchise Lead Generation Q & A

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question-mark3aA few months ago, there was a discussion in one of the LinkedIn franchise groups about local franchise lead generation. The discussion was initiated by a franchise professional specializing in franchise sales and consulting. As we have done in the past when posting comments from a social network discussion, we will identify the individuals that submitted comments according to their social network profile.

The discussion opened with the following post:

Ideas for Lead Generation Sources. Anybody have suggestions for local lead generation? Looking for ideas from zors, zees, consultants & brokers on how to generate leads local to a specific area.

Here are some of the responses that were posted including my own which just so happened to be the initial response:

“[Name], I usually explore social networking groups specific to the area such as the inHouston LinkedIn group if I’m trying to generate leads in the Houston area. This type of group is realtively easy to target and expand beyond based upon member recommendations and suggestions. Work the crowd as if you were in a room.

In addition, I focus on networking groups that include individuals that best fit my franchise candidate profile. From there I drill down to individuals in the local area. Let’s say teachers fit my candidate profile. I would search out networking groups spefic to teachers, education, etc. I may participate in discussion groups to get a feel for the group and to be recognized within the group. There’s always a spin you could use. Next, I seek out members from the specifc area I’m targeting and communicate what I’m trying to accomplish. It’s been amazing how many times I’ve wound up with a candidate in California that is willing to jump at an opportunity in Texas. It happens.

I also focus on groups that can provide me with referrals such as insurance agents, realtors, financial planners and attorneys. Again, if you’re proactive within networking groups it’s realtively easy to enlist support and gather information.

Lead generation through online networking takes time and effort no doubt. However, once you’re proactive within the groups, you almost windup with a snowball effect as the leads come in bunches. Some leads start out as simple as posting a thought provoking discussion, some back and forth interaction with a responder and the responder saying,”what is it that you do?” Next thing you know, you’re discussing an opportunity and the door is wide open.

Most times it takes considerably more effort but I’ve found people are networking online and participating in discussion groups for a reason. They’re all looking to expand their business, improve their position, seek out opportunities and make money. It sure beats running an ad in the local paper and waiting for the phone to ring.”

An executive of a national franchise concept responded as well.

“Other sources of local lead generation include – classified advertising, seminars, the local business journal, and chambers of commerce. I also use industry specific sources (trade publications, trade associations) depending on the franchise. My favorite is PR. If you can can a story published at a local level – it tends to generate a good deal of buzz.

As you are finding – it is a bit more challenging to put together a local or regional campaign, than it is to promote a national effort.”

A franchise executive of a national foodservice franchise concept posted the following:

“I like to target existing multi-unit operators of non-competing brands in the same industry. For example, if I am selling full-service restaurants, I would seek out multi-unit fastfood operators in the area. Or if I was selling windshield replacement franchises, maybe I’d target muffler or brake franchisees in the area. Get your hands on some UFOC’s that list franchisees by state. It’ll give you the franchisee’s name, address and phone number and you can go down the list contacting the owners. You must size up the target market to your product. For example, you probably wouldn’t have much success targeting Subway franchisees for a TGIFriday’s franchise, as it’s a big leap from a $50,000 investment to a $3 million investment. But maybe the Subway UFOC would provide good leads for someone selling Baskin Robbins franchises. Get the idea? Last thing, by focusing on existing franchisees in someone else’s system, those prospects already understand franchising, know that fees are due and payable weekly, understand they must operate according to the franchisor’s standards, realize they must undergo training, particpate in the marketing co-op, etc. Hope this helps.”

Next, the foodservice executive and I exchanged the following comments:

Me: “[Name], excellent points. I utizilized a similar strategy with great success. Other key factors include the current franchisees’ knowledge of franchising and their lender’s knowledge and experience with the franchisee may be just the edge needed to secure financing in today’s tight credit markets.

Foodservice Exec: “Paul, you mention an important point in today’s economic market. Successful existing franchisees should already have relationships with lenders who have seen them perform over time. A well-funded prospect is worth his weight in gold! Any contracts that are “contingent on financing” may as well be thrown in the trash, as lenders are not willing to take the risk with an unknown, untested, unproven franchisee.

Me: “I absolutely agree with you. Just the mention of a brand new candidate exploring a franchise concept without the candidate having any experience sends a lender running for the hills. It really doesn’t matter how proven the franchise brand is and how long it’s been around. To that end, I see primary growth in franchising coming from current franchisees looking to diversify their business portfolio, adding new revenue streams and streamlining redundant expenses.”

It was an interesting discussion and I believe several good ideas and thoughts were presented. I know the information reached an audience that did not actually participate in the discussion because I received over thirty emails from individuals asking me to expand upon my responses, and those of the other participants. In addition, we shared ideas and thoughts, and discussed our own experiences. I’m proud to say that I also learned a few things myself. Proof again of the benefits of social networking!

Transitioning Interested Parties to Franchise Candidates

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In continuing your journey of Franchise Development via Social Media, it’s important I point out that social media for typical business to business (B2B) or business to consumer (B2C) purposes is much different than social media for franchise development purposes. In a typical B2B or B2C scenario, social media efforts would be directed to the entity or individual you’re attempting to do business with. Your business with them may be a single transaction, or as with restaurants, it may include repeat business where you’re seeking customer loyalty. Regardless, your position is strictly focused on attracting and keeping your customer, and the transactions are usually relative to a specific, tangible product or service. They buy. You sell. And the cycle continues the same or it abruptly ends.

intangibleIn the franchise development arena, your social media efforts will be considerably different as your objective is different. The franchise sales transaction consists of a substantial upfront fee for an intangible item, franchise rights. The transaction is only the beginning of the additional cash outlay or credit commitment, that’s triggered by the initial fee and signing of the franchise documents. Yet, the relationship is not one that’s just based upon that one single transactional experience. Instead, it’s only a small step in an ongoing relationship where the new franchisee becomes dependent upon the franchisor and the concept. Buyer’s remorse is not an option. The social media efforts must progress and build upon each other with the objectives gradually changing and progressing “as” the relationship builds, and not just “because” the relationship builds.

Yesterday, we discussed establishing the Virtual Party Room. Today, we’ll discuss how to interact with the individuals within the room and with the new people we’re introducing to the party. Our objective will be to learn, through utilization of powerful Web 2.0 technology and tools, how we can transition interested parties into franchise candidates by just “holding their hands” and letting the experience guide them along until they’re ready to make a decision. Easier said than done? Well, it’s not rocket science, but I’ll still try to be as fundamental as possible in my explanations.

Transitioning Interested Parties to Franchise Candidates

When the interested party enters the Virtual Party Room, he or she is basically just tire-kicking. Oh, they may have expressed significant interest in your concept, or maybe they’re just inquisitive. It really doesn’t matter at this point. Your objective was to introduce the individual to the party. That’s it. It wasn’t to push them immediately towards the franchise sale. It’s wasn’t about discussing the fine points of the franchise concept. It certainly wasn’t about closing the deal. Your only objective at this point was to introduce the individual to the party so he or she could learn more, interact with others in the party and gather enough information to make an informed decision at their own pace. Remember, social media is not about selling!

hostessAs with any popular party, it’s important to have a host or hostess. In your party room, this person is essentially in charge of accepting member requests, posting new information, updating various features and keeping the “conversations” flowing. I think you now fully understand the party analogy so let’s transition to reality and make reference to specifics with respect to your franchise concept.

The host or hostess is the person you install as being in charge of your social media efforts. This person is key to making your social media efforts a success or failure as this individual must be on their “A” game. They must pay attention to detail and exhibit a sense of urgency when necessary. Starting at the very beginning, this individual will set up the company page in a specific social network. I highly recommend utilizing Facebook, but it can work in other social newtorks as well.

In Facebook there are general, basic information sections that need to be completed. Once completed, you’ll need to start building your site with information about your franchise concept. Videos, a strong Web 2.0 tool, work extremely well in conveying messages to individuals interested in your concept. The founder’s statements about vision and passion for the concept goes a long way towards generating excitement. A few video testimonials from franchisees, placed strategically within the site, provide a balance between the concept as a franchise opportunity and the concept as a consumer experience.

Photos, placed throughout the site along with comments, are a great visual affect as well. These photos may be of franchise locations, the equipment used in daily operations, the original locations from which the concept was derived, the founder, personnel, the product or service sold at the franchise locations, etc. All should include comments with each post explaining the photo. Additional comments from other group members will enhance the experience behind the photos.

A media section should be established to include press releases, audios and videos of important speeches, photos of company spokespersons, online and print news and feature stories, highlights of community events, etc. Comments about each must accompany the posts. Again, additional comments will further enhance the experience.

All individuals having anything at all to do with the franchise concept should be invited to join and participate in the group. These should include company executives, managers and personnel at all levels, franchisees and their personnel, franchise customers, company vendors and suppliers, and all interested parties in the franchise concept. In place, and participating, this group creates the buzz and excitement of the group.

Now, when individuals that have expressed interest in your franchise concept join the group, they may interact with group members, asking questions and seeking information. They’ll start to “experience” the concept from all angles as if they were at the franchise locations or within the corporate office. At any time they can jump into the conversations and add their own comments. Sometimes in the forms of questions and as they get more comfortable within the group, as their own personal comments and views.

Over a short period of time, and through monitoring the group’s activities, it’s relatively easy to “see” which individuals are interested in becoming franchisees of the system. Their questions and comments will dictate their interest. This is where the individual in charge of the social media efforts increases their interaction with the interested parties and provides even more information that moves them along in the process. This is usally done through site messages, or responses or comments to their comments. Ideally, the best way is a timely instant message as provided on the Facebook page.

The system basically moves itself up to a point. From there it needs to be guided and ultimately directed towards the latter stages of the franchise sale. Now, don’t get me wrong, an email or phone call throughout the process helps, but only as a guide or reference to a real person. Another Web 2.0 tool that works great in this regard is a video email (vidmail) program that brings a real person right to their desktop. It’s both a professional and effective use of Web 2.0 technology.

Okay, the site is up and running, you have interested parties joining the group, they’re interacting within the group and all is going according to plan. What next? Certainly there’s more to this social media thing, isn’t there? Yes there is. Ever hear about Twitter? Do blogs sound familiar? How about You Tube and Flickr? Ah, now we’re getting somewhere.

twitter-logoOn Twitter you’ll post frequent bits and pieces of information about franchising and entrepreneurship in general and along with a few “personal” tweets, yes they call them tweets, you’ll post links to various parts of your concept including the Facebook group page, your website which will have a link to your Facebook page and to your blog, which will also have links back to your Facebook page. So you see, all activity will ultimately be directed back to your concept’s Facebook page because that’s where you can monitor and control the flow of information and interest because it’s interactive. There, that answers the question of why shouldn’t everything be directed to the website? Let me clarify. Facebook is interactive. Websites are not.

Remember the videos you developed for the Facebook page and the photos you posted to the Facebook page? Well, you’re now going to post the videos on You Tube and the photos on Flickr. Each post will have a desciption, and guess what, a link back to your Facebook page! This way, you’ll be able to direct individuals from your Twitter and Blog to these sites as a redirection to your group page or you may be able to generate interest in your concept by individuals exploring these other Web 2.0 sites. Keep in mind, I’m only scratching the surface on the different Web 2.0 sites as there are hundreds. Using as many as possible in cross-referencing and click-throughs will enhance your efforts many times over. By the way, it won’t hurt your search engine optimization either.

Additionally, you will take your Facebook group identity and join other Facebook groups where individuals with interests in franchising, entrepreneurship, specific business type and that may have the criteria of your ideal franchise candidate, congregate and share information. During the course of discussion and sharing of information, it’s relatively easy to guide these individuals to your Facebook group page and the cycle begins on your “turf” with them. The same holds true with LinkedIn groups, Twitter groups and other social network groups.

As you can see, the limits of social media are endless and are only limited by discouraging imagination, holding back creativity and not dedicating ample time to administer, execute and monitor the process. The potential benefits are far reaching throughout the organization including creating brand awareness with franchise candidates and consumers alike, generating qualified franchise leads and subsequent franchise sales, and establishing an interactive environment of communications and information sharing at all levels of a franchise organization.

In tomorrow’s third segment of Franchise Development via Social Media, we’ll discuss how to integrate social media with traditional franchise marketing and development strategies, and some non-traditional strategies as well. In the meantime, please submit any and all questions below, and I will respond accordingly prior to posting the next series segment.

Establishing the “Virtual Party Room”

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In the recent article, Enter the Fourth Horsemen, published in the April 2009 issue of Franchise Times, Mark Siebert, Chief Executive Officer of the iFranchise Group identified Social Media as the next internet [franchise] lead generation site. In the article, Mark wrote, “The problem is that far too many franchisors view social media like guerilla marketing on steroids – easy opportunities for free publicity that can drive leads. But marketing on social media is neither free nor easy – and the shear number of people using the social media will not dictate the size of the opportunity.”

Let’s see what else has been written about Social Media and Franchising. Actually, in the same issue of Franchise Times, where Mark’s article was published, Nancy Weingartner, Franchise Times Editor wrote about it in her article, Citizen Marketing. At the end of the article, was a text block with the title, “The Top Five Social Media Mistakes” from Nick Powills of No Limit Media Consulting. The mistakes, clearly with franchising in mind, but applicable to other business segments as well, were identified as follows:

Five1. Not changing your franchise agreement to cover social media. Just like franchisors took control of their Web sites a decade or so ago, now they need to control what’s being said about the brand in social networking sites. In addition, start now to secure your company’s name in conjunction with YouTube, etc., just like you did URLs just a few years ago.

2. Not maintaining and updating your Facebook, Twitter, LinkedIn or blogs. Once you train the public to visit your sites for updates or to post a comment, you’re obligated to follow through. Nothing is worse than ticking off the new citizen journalists.

3. Thinking you can do social marketing on your own. While you may have a marketing team in-house, they’re also charged with traditional advertising, PR and marketing. “You need someone to do it daily,” contends Nick Powills. And you also want someone who knows what they’re doing. Social media is not just PR in a trendy wrapper. You need someone who knows franchising and the “social” lingo.

4. Overpaying to outsource this service. Since it’s still fairly new, it’s hard to quantify how much a lead from social media actually is worth. Are you looking for franchisees or long-term customers? Do your due diligence – sound familiar?

5. Thinking Facebook, etc., are just for kids. Facebook may have started as networking for younger people, but take a look at who’s on it now. Some of the original kids’ grandparents are living their lives on their Facebook pages. Powills describes it as “LinkedIn on speed.”

So, does all this have your head spinning yet? Well, it should unless you take the journey of Franchise Development via Social Media one step at a time. You see, the real beauty of social media is the ability to start slow and progress at your own pace. And, there’s opportunity to learn each step of the way. Unlike developing website content, where a mistake glares at you and is difficult to correct, a mistake or error in social media is relatively easy to correct, and usually provides enough time to make the correction. Okay, enough of that but I just wanted to put your minds at ease in case you’re phobic about new technology, and new methods and processes. As for the top five social media mistakes listed above, please keep those in mind and use it as a reference as you progress on the journey of Franchise Development via Social Media.

Franchise Development via Social Media – Part One

Most people believe the first step in social media is to start networking right away. That’s is not the case but is a mistake made by most individuals and companies attemting to use social media as a way to grow a business. The first step is developing the strategy to begin social media marketing of which networking eventually becomes an essential element of the same.

So, the first step is to establish objectives in what you’re attemting to achieve by venturing into social media. The common reason I hear from franchisors is their desire to generate leads so they have candidates in the franchise sales pipeline. Actually, the main goal is to increase franchise sales so let’s call it what it is. Let’s take it a step further and identify the primary goal and objective as “generating qualified franchise leads that ultimately will lead to franchise sales and at a level that makes the social media effort worthwhile.”

Step two then, would be to identify your concept’s ideal franchise candidate profile. Who would be most likely to succeed as a franchisee in your system? If your system already has a relative number of franchisees, a profile of the most successful franchisees would help in this regard. Once, it is fully understood what type of individual you’re looking for as a franchise candidate, we’ll need to explore where to locate these individuals online. Do not shortcut this step as identifying your ideal franchise candidate is critical to the process.

The next step, will find you exploring various social networks and establishing company pages and profiles. Remember, you’re not networking yet. You’re just working on developing your social media infrastructure. Establishing company pages and profiles are key elements to the overall strategy because one of these sites will ultimately be your concept’s “virtual party room.” This party room, or “meeting place” or “landing page”, as I’ve referred to it in the past (“meeting place” is not exciting and “landing page” is too technical), is the place where all your social media efforts will culminate and turn an interested party into a franchise candidate. (For another perspective, may I refer you to another article on this site “Franchise Sales & Space Mountain: An Odd Comparison?”)

Group of peopleIt’s in this virtual party room that you’ll encourage attendance and participation by interested parties, franchisees, franchisee personnel, franchise customers, franchise company executives and personnel, and the concept’s vendors and suppliers. The goal is to establish a party where conversations about the concept, and its products and services, are happening all over the place. For instance, a discussion is started by a franchise candidate and is addressed by corporate personnel. A question is posted by a franchisee and several answers are submitted by various individuals. A video by the CEO is posted and is viewed and commented on by various individuals with different interests in the group and concept providing distinct perspectives. Positive comments (testimonials) are posted by customers. There are a hundred, two hundred, four hundred or more members of the group. There’s an information section listing the concept’s website, blogsite and other pertinent links. There may even be a media section with recent press releases or news stories about the concept and the franchisees.

Imagine now, directing your qualified franchise candidates, one at a time, to this party room. Picture it in-person as opposed to virtual and think about the conversations, the buzz in the room, and the excitement generated. The same is true in this virtual party room. Except, the virtual party continues to grow and grow over time and franchise candidates can visit over and over again, interacting with group members, developing key relationships and sharing information. All key components towards making an informed decision about your franchise concept. Mind you, we’ve jumped ahead and explored what the party would look like down the road a bit. But for now, we’re just establishing the place to hold the party.

The next step is to locate where the ideal franchise candidates are congregating online. For example purposes, let’s identify your ideal franchise candidate as female, with mid to upper level management experience within the financial services industry, and with school-age children. Now, let’s assume a few things. Individuals meeting this criteria may be re-entering the workforce after five or six years as a stay-at-home Mom. She may be exploring entrepreneurship as opposed to working in Corporate America once again. By virtue of her mid to upper level management experience it’s most likely safe to assume this indiviudal is well-educated and may have an advanced degree. Using these assumptions and criteria let’s find your ideal franchise candidates.

facebook_v_linkedinUsing LinkedIn or Facebook, you can explore various groups consisting of executives and relating to the financial services industry. You can also explore groups that pertain to startups, entrepreneurship and small busines ownership. Now, you will join a few of these groups and monitor the discussion groups. Again, you’re not networking yet but you are starting to participate in discussions, answering general questions, getting a feel for the “land” and exposing the group to small busines ownership, entrepreneurship and finally, to your concept. Once, members in the group start to request to connect, that’s when the actual networking begins. This is key. The networking only starts when individuals request to connect with you or your company, not the other way around by you asking them.

As you connect with individuals, you have access to their profile which includes work experience, level of expertise, recommendations, education, hobbies, etc. This host of information will provide you with the missing pieces to the ideal franchise candidate profile. It will also provide you a snapshot of other groups they’re involved in and may even include other social networks. If not, a Google search provides a wealth of additional information that can be explored. (When you have an opportunity, perform a Google search of Paul Segreto and you’ll see 10-12 pages of search results with 8-10 results on each page – you’ll be able to determine how I spend my time, who I’m working with and where I’m involved)

Over a short period of time, you’ll start referring individuals to your virtual party, asking them to invite their connections and so on. Simultaneously, you’ll introduce these individuals to your website and ask them to follow you on Twitter because you’ll already have established a Twitter ID. They’ll see how you promote other people on Twitter interact with you and will be exposed to how you promote yourself and your concept in that social network. At some point, you’ll have established a blog and will be referring individuals to your blogsite, and be able to track their interest and activity.

You’ve now built this multi-level web of social media activity that connects from one point to the other, backtracks to other relevant points and eventually winds up at the party. While enroute to the party, you’re learning a great deal about these people individually and they’re learning a great deal about your concept. As all this is occurring, you’re also increasing your concept’s search engine optimization but that is another story for another day. But it is an added benefit.

Tomorrow we’ll discuss interacting with the individuals within the virtual party and explore various methods of generating further interest in your concept while basically just “holding hands.”

I encourage you to leave any and all comments and questions below. I will respond accordingly prior to posting tomorrow’s segment in this four part series that is scheduled to run through Thursday.

Franchise Development via Social Media: Let the Journey Begin!

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This week, a great deal of time will be spent on this site focusing on Franchise Development via Social Media. I’ll address the basics and identify how to integrate Web 2.0 technology and tools with traditional franchise marketing and development methods. The ultimate goal and objective to be achieved by these efforts will be to provide franchisors an effective way to generate franchise sales in today’s economic environment and beyond.

Now, before proceeding on our exciting journey, let’s not lose site of basic sales skills and the fact that franchise candidates must be treated professionally and with a sense of urgency. To that end, as a primer to this week’s journey of Franchise Development via Social Media, I am reposting below, the recent article posted on this site that referred to Franchise Update’s mystery shopping of franchise companies. Let’s keep the results focused in our minds and understand, regardless of what methods generate interest in a franchise concept, it still takes personal attention to detail, extreme professionalism, and diligent follow-up to successfully move any interested party from franchise candidate to franchisee.

Your participation is greatly encouraged and will certainly be appreciated. Please submit all comments and questions in the appropriate section at any time during the journey and I’ll respond as quickly as possible but definitely before the next day’s segment. I anticipate four segments in all, with one each evening through Thursday of this week. That will provide more than enough information to ponder over the upcoming Memorial Day weekend.

Without further delay, let the journey begin!

lagging-salesWhy Are Franchise Sales Lagging?
originally posted on this site March 24, 2009

Besides the obvious factors of economic uncertainty and tight credit, what other factors are contributing to dismal franchise sales across the industry? Are we contributing to the problem? Are we doing a disservice to franchise candidates, the very people exploring options for a better future?

Recently, Franchise Update’s own mystery shopping (posing as a qualified buyer and phoning in and emailing to 148 franchise companies who represented 57,000 units) revealed such fundamental flaws as:

no callback within 48 hours (58%);
not taking a name (24%);
not taking a phone number (45%) or email address (40%); and
not asking for a time frame for buying/opening a franchise (67%).

The ironic thing is that the industry routinely pays out 20-30-40% commission on franchise sales.

In light of recent poor performance and, high expense in actually awarding a franchise, can the franchise industry continue its franchise development efforts in the same manner as it has for the past ten or so years AND expect to grow?

Women, Social Media and Franchising: A Winning Combination?

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Women, more than their male counterparts, have embraced social media as an integral part of their typical day. From getting their news online to communicating with family and friends on social networking sites to blogging about their personal and business experiences, women are spending more time than ever before on the internet.

women get it rightAs more and more women explore franchising as a career alternative, choosing to control their own destiny, franchisors must market directly to this rapidly-growing group of opportunity seekers. Joining the force of today’s more sophisticated, educated and technologically advanced transitioning corporate executives, women will use social media to explore and investigate franchise opportunities. Tending to be more diligent and thorough than men in general, women relish relationship building and sharing of information making social media marketing perfect to attract female franchise candidates.

The article below details the continued usage of social media by the female population. Franchisors should pay close attention to the various stats provided by the author and make social media marketing a key component of their franchise marketing and development strategy.

42 Million U.S. Women Use Social Media: Blogs Most Influential
By Anita Campbell on Small Biz Trends May 10, 2009

Is the jury still out in your mind as to whether social media matters in business? If so, a recent survey might make you change your mind. In fact, it may cause you to re-think your entire marketing outreach, especially if you market to women.

The study found that 42 million women in the United States (roughly 53% of the 79 million adult women in the United States who use the Internet) participate in social media at least weekly. As they spend more time with social media, women are spending correspondingly less time with traditional media: 39% less on newspapers, 36% less time reading magazines, and 30% less time watching TV.

That’s according to a recent social media survey by BlogHer, the women’s blog network, along with iVillage and Compass Partners.

Read the entire article here

Regional Franchise Development as a Growth Strategy

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PowerHouse FranchisingThe following article, the first in a series of articles on the subject of Regional Franchise Development as a Growth Strategy, has been submitted by franchisEssentials Guest Author, Dan Durney, Partner and Co-Founder of PowerHouse Franchising. Dan has a wealth of business and franchise experience including:

•Expert in analyzing business opportunities and clearly explaining the details in a clear and concise manner.
•Thoroughly enjoys the “exploratory” phase of business qualification where the goals, expectations and capabilities of the individuals seeking to be in business for themselves, but not by themselves, are matched up with the individuals who are looking for partners to help launch their concept.
•Directing the development of the current Internet strategy for PowerHouse Franchising, including enhanced pipeline and lead-generation reporting.
•Currently owns multiple Regional Development Concepts in the U.S.
•Experienced (and entertaining) presenter for conferences, training seminars and business opportunity expos.
•Prior experience in sales and support to large Corporate Enterprise customers as well as small “mom and pop” operations allows for comprehensive understanding of today’s business climate.
•Has started and successfully run three separate businesses (Telecom, IT training, & Marketing).

franchisEssentials is pleased to have Dan as a Guest Author and we look forward to posting additional articles in the future from Dan and his excellent team at PowerHouse Franchising.

Regional Franchise Development as a Growth Strategy

It’s not for everyone to be sure. In fact, it’s for very few. Estimates range from 3-5% of all franchisors use this method of growth as a corporate strategy. Maybe, only about 15% even should consider it. However, when the right franchise concept, with a dynamic business model and strong unit economics embrace it… it can be MAGIC and make the brand a “Force” to be reckoned with.

Regional Development SampleWhat is Regional Franchise Development? Do we know it by any other name? Oh yes we do – Regional Representative, Area Director, Area Representative and of course Master Franchising. Oh ok, now I’ve heard of those – so what’s the difference? Basically, not much but if the Franchisor shares the Franchise Fees, Royalties and sometimes Distribution income with these Strategic Market “Partners” (legal guys – please don’t sweat the use of “Partner” here – I use it mainly for illustration purposes and not strict legal definition – thanks!) then you have the makings of a Challenging, exciting and VERY rewarding business building opportunity – both for the Franchisor and for the Regional Developer (RD) (we’ll stick with this Acronym for these articles).

We’ll start off this series by discussing WHY a Franchisor would decide to develop their brand this way and what they can expect to see in terms of growth and infrastructure development. Then we’ll explore what benefits (branding, revenue opportunities, etc.) are in store for the company, the RD and the Franchisees too.

FOUR Reasons for a Franchisor to Consider Regional Development as a Growth Strategy

1) Faster Growth – more sales efforts in each Region.

2) Lower Corporate overhead costs – staff up to support approximately 60 Regional Developers.

3) Greater collective EXPERIENCE of Regional Developers brings more objective input with local experience. No ”Ivory Tower” syndrome.

4) Better ongoing franchisee support with costs pushed out to the Regional Developers.

The RD has an incentive to develop the Region as quickly as possible; therefore the franchise recruiting efforts can begin immediately within the local market. Using Business Brokers, Franchise Consultants, Local Networking, Online Portals, Classic Advertising, Social Media (I won’t even get started on THAT here), etc. are some ways to find the most interested, qualified and “ready to move” candidates. Of course, once the “Pilot Unit” is open, customers of many concepts have become franchisees themselves after experiencing the products / services of the franchise as a consumer.

Imagine the growth curve for the franchisor as the RDs begin to recruit in their local market – face to face – filtering out the unqualified and presenting the ones who are properly vetted to the franchisor for approval. What kind of candidate would an RD be looking for? One with whom they feel they can work well together, who will be a TEAM PLAYER in the market with the other franchisees, and will be receptive to coaching and mentoring that the RD will provide.

What would the Franchisor’s costs be to hire, train, house, and compensate franchise sales people to accomplish the same thing? The Franchisors who “do the math” clearly understand this concept. It can result in strong, controlled, and calculated growth. Who doesn’t want that?

One VERY SUCCESSFUL franchise concept that rolled out exclusively thru Regional Development has over 540 units open (800+ awarded) across the USA and is supported by a staff of only 40 at corporate HQ. Those staff members support the RDs and the RDs support the franchisees in their local markets. It’s a tiered distribution of support. Remember, the RDs are compensated for this with the sharing of the Royalties paid by the franchisees. (More about the revenue streams to the RDs later).

It still needs to be done correctly, having sufficient staff to support initial RD location openings, etc. This company did it right, for the most part, enduring some bumps and bruises along the way, but there are certainly others who haven’t. What caused their downfall? That’s for another installment…

Best PracticesBubbling up the “Best Practices” from the Regions thru the RDs provides the Franchisor with invaluable “field research” to improve the brand, its offerings and stay better apprised of the competition.

If you think about it, it is actually a “selling” feature of a franchise to have local support by someone who has a vested interest in the success of the franchisees in their market. Often the RD is only a short distance away and visits more frequently than head office staffers dispatched quarterly or less frequently.

Branding is better controlled as well since the RD is responsible for monitoring the local co-op advertising activities in their market.

So, we see the benefits for the Franchisor, RD and Franchisee can be substantial. What are we looking for in a Regional Developer? What characteristics should be avoided for an RD? Is it for you? Is this the right time in your life and personal circumstances?

Social Media and Franchise Lead Generation

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Mark Siebert, Chief Executive Officer of the iFranchise Group, one of the leading franchise consulting companies, recently wrote an excellent article about Social Media Marketing, and how it can be used to generate franchise leads. Mark explores the world of Social Media Marketing while defining it as the fourth part of effective franchise lead generation strategies. I believe Mark is spot on in his thoughts and views of Social Media Marketing. For the benefit of all that may not have read the article as of yet, I have listed the article below.

Enter the Fourth Horseman
Social media is the next lead generation site
By Mark Siebert
As published in: Franchise Times – April 2009

franchise-timesBy virtually all accounts, the Internet represents the single biggest lead source for most franchisors. Yet despite its dominance of the franchise lead generation market, a significant number of franchisors simply do not use it effectively.

It is little wonder. The traditional troika of Internet lead generation – organic search, Pay-Per-Click, and portals – are all designed to keep us off balance. Organic search engine optimization techniques change almost weekly, as the major search engines try to improve their search algorithms and SEO companies strive to catch up. Pay-Per-Click advertising, by the very nature of the competitive bid process which serves ads, can require frequent strategy changes in an effort to stay a step ahead of the competition. And franchise portals, which now number more than 100, represent the primary focus for most franchisors’ Internet marketing strategy.

Read more…