Tag: Franchise Sales

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?

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…

Franchise Sales & Space Mountain: An Odd Comparison?

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social-networkingThe great thing about social networking, that has been missing from online franchise lead generation, is the “meeting place.” It’s a place where a candidate gets to know the people in the know as well as on the fringe; the concept’s customers. So, let’s define the “meeting place.”

The “meeting place” is anywhere online where cyber identities gather. Ok, it’s where people network on social networking sites such as LinkedIn, Facebook, Twitter, MySpace, just to name a few of the most popular sites. I just wanted to be geeky cute so forgive me for the humor.

Anyway, in these social networks, individuals meet with others, share information and learn new things. In this process, if they’re looking for a franchise or business opportunity, they’ll seek out information that may assist them in the process. Through referrals and discussion groups they may be exposed to “experts” in their particular field of interest. Experts that may have the answer to what they’re looking for.

But, would they trust a direct push right to a website full of information? The answer is no because they’re only “hearing” it from one source. They need to have full understanding which the website may help provide. But before that, they need to “see” and “hear” what others have to say. Others that know what’s going on. Others that have experienced the service or product as the end user. Others that are the “operational” people. Where does the candidate find that online? Is there a place online that is not intimidating and so one-sided that it creates a level of discomfort as opposed to excitement to proceed?

Yes, there is such a place. For one, a Facebook fan site of the concept, could be just the right place. A landing zone so to speak before being launched to the company website. This non-intimidating site may have a cross platform of many different individuals “talking” about their views, positions and experiences with the company as a candidate, a franchisee, a corporate executive or a customer. It’s in this zone that the franchise candidate learns about the practical side of the concept, the pros and cons as they are conveyed from different individuals, and they get to “see” the experience of the concept itself through the “eyes” (comments) of others.space-mountain2

It’s kind of like standing on a line for a ride at Disney World where the time up until the ride takes off is the Facebook site and the ride itself is the concept a franchise candidate is considering. On the long line for the ride, you kind of know what to expect and the anticipation builds as you move along. But, you just don’t jump on the ride, right? You first go through the info stage. You read the general signs at the entrance. You hear directions and watch videos along the way. Sounds a lot like Social Media, doesn’t it?

Further along, you see the caution signs. You interact with other guests on line. You share what you have heard about the ride with others and them with you. You interact with the ride personnel as they usher you to the ride itself. There, you interact with the people who just finished the ride and you see the excitement and joy on their faces. Now you’re ready for the experience yourself. Hold on tight because as the ride leaves the station, YOU”RE COMMITTED!

agreementOf course, franchise sales are not quite as easy or simple as anyone who has ever presented a franchise sales opportunity can attest. But when you consider the building and infrastructure of the ride and the time spent developing the ride concept, the design of the structure, the projected ride experience and the large financial investment, it’s easy to see how both a franchise opportunity and a ride evolve the same and ultimately have similar objectives; to encourage participation, create a positive experience, instill a desire to do it again without remorse and to share their unique experience with others.

The one key thing that Disney has that may be lacking in many franchise organizations is “attention to detail.” It’s the little things along the way that create the desire, justify the value and establish trust that the Disney name brings to the experience. Is it ironic that key components of a sale are need/desire, value and trust? Are you ready for the Disney-ish way of selling franchises? If you are, then you’re ready to sell franchises through social networking, social media and all the other goodies that make up Web2.0!

Franchise Growth: Are Concessions and Discounts Necessary?

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This article is based upon a recent discussion in a LinkedIn franchise group. The original discussion posted the question, “What kind of discounts or concessions are required now to get a franchisee candidate to move forward?” and generated many responses and different views. The following is my response when my view about getting back to basics was preceived to be fine during “normal” times as opposed to during more difficult times, such as the present. A subsequent response from another franchise professional implied there are too many franchisors. I’ve addressed that as well.

discountAlthough it’s certainly easier to accomplish franchise growth during “normal” times, the basics need to be in place even more so during tough times. That’s not to say we don’t need to think and act outside-the-box to make something happen. It just means we need to be extra prudent and diligent in our actions and not use the economy as an excuse for poor execution of skills.

If we are to offer discounts and concessions in awarding franchises we need to be extremely careful we don’t oversell or create the perception of desperation. By doing so, we’ll either lose the deal or create a situation whereby the franchisee will not have respect for the franchise system and feel if one or two concessions were made initially, why not more moving forward? And then, there’s the perspective of franchisees already in the system that paid full amounts without concessions. What’s in it for them?

Nevertheless, with reports like Franchise Update’s about poor franchise sales performance and practices, I can’t help believe franchise systems wouldn’t be in better shape if their sales basics were perfected. It has to start with the basics before changing direction or considering revisions to the program.

In any business, just like in any sport, when a slump is emminent, it’s the fundamentals that need to be worked on before anything else should be considered or entertained. Once that’s done, then it makes good business sense to consider other options. At the very least, it should be done simultaneously. If not, what’s going to be the excuse when concessions and discounts don’t work?

PS – Saying there are too many franchisors is akin to saying there are too many businesses of the same kind. What happened to free enterprise and entrepreneurship? Maybe, franchising could be better served by more regulation, licensing and policing, to weed out the weaker (for whatever reason) franchisors and make it more difficult to become a franchisor. Unfortunately, I don’t see that happening because the “big boys” of franchising will squash those efforts in a New York minute. I look forward to debating this topic in a different discussion or forum.

Why are franchise sales lagging?

· 1 Comment ·

lagging-salesBesides 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?