1851

<a href="https://www.franchising.com/articles/the_strengths_and_limitations_of_franchise_portal_leads_pre__postcovid.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894#:~:text=Franchise%20portals%2C%20also%20known%20as,with%20other%20lead%20generation%20sources." target="_blank" rel="nofollow">Franchise portals</a> are generally understood to be web portals that provide a for-profit service, collecting and selling leads. This is typically done on a non-exclusive basis, and portals are known for producing a high number of leads for a lower cost compared to other lead generation methods and services.Some franchisors question the integrity of the leads provided by these portals as multiple franchisors and brokers have access to the information, and a single lead may be contacted by several different franchises. Nevertheless, according to&nbsp;<a href="https://www.linkedin.com/in/keith-gerson-5159aa5/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">Keith Gerson</a> for&nbsp;<a href="https://www.franchising.com/articles/the_strengths_and_limitations_of_franchise_portal_leads_pre__postcovid.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894#:~:text=Franchise%20portals%2C%20also%20known%20as,with%20other%20lead%20generation%20sources." target="_blank" rel="nofollow">Franchising.com</a>, “During the first half of 2020, portal leads represented 38% of all lead sources, resulting in the creation of 55,000 leads in Q1.”“The main advantage of using franchise portals for lead generation is that they give your start-up or small business a higher level of brand awareness. That eventually helps get more traffic, expand your audience base and generate more profit based on high-quality lead generation for your business,” explained&nbsp;<a href="https://www.linkedin.com/in/alex-haley-798246239/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">Alex Haley</a>, digital marketer and co-founder of&nbsp;<a href="https://yardsnearme.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">YardsNearMe</a>.Though portals have a strong record of providing high numbers of leads at lower costs and are a great way to gain exposure for a brand, the leads convert at a far lower rate than other sources. While a lead may appear to be highly qualified on paper, things like fit and overall interest are more difficult to evaluate in the portal environment. Franchise portal leads&nbsp;<a href="https://www.franchising.com/articles/the_strengths_and_limitations_of_franchise_portal_leads_pre__postcovid.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">convert at a rate of 0.3%</a>, meaning that an average of 350 leads will be necessary to generate one sale. Regardless of how much exposure a brand receives or how many potential buyers are matched, the conversion rate is what really matters when selling.Further, the efficacy of franchise portals is greatly impacted by the size and/or type of franchise looking to sell. In one quarter, large enterprise brands secured a whopping&nbsp;<a href="https://www.franchising.com/articles/the_strengths_and_limitations_of_franchise_portal_leads_pre__postcovid.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">84% of portal deals</a>.<a href="https://www.linkedin.com/public-profile/in/mandymrowe?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">Mandy Rowe</a>, president of&nbsp;<a href="https://www.truerestfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=do-franchise-portals-work-2718894" target="_blank" rel="nofollow">True REST Float Spa</a>, explained why franchise portals aren’t the most useful tool for some franchisors. “For us, we’re in an industry, the float therapy industry, where I don’t have any competition,” she said. “I don’t have another franchisor in this space, and it’s such a unique concept right now. About 50% of the people I talk to still don’t even know what floating is when I tell them what I do for a living.”In cases like Rowe’s, franchise portals may generate leads that are qualified in a financial sense, but they do not guarantee that the lead is also familiar with the business.“They would send me leads. They were good, qualified people in terms of any financial growth; they had all the right collateral and could get funding. But, when it came down to the operations of running the business, I had to start at square one,” she said. “What is floating? Is this even something you enjoy? Is it a business you would want to run?”For some franchises, while portals may provide financially-qualified contacts, the additional work required to explain and connect over the business concept simply is not worth the time and money.Unfortunately, like many business issues, the answer here is “It depends.” Whether franchise portals will work for a specific franchise is a very individualized question. In theory, portals serve as a fantastic resource to gather tons of leads at a relatively low cost. It then becomes the franchisor’s responsibility to evaluate the quality of the leads.Rowe explained, “I think the larger we grow and the more familiar people become with floating, the easier that will become. In which case, portals might become useful for me. But at the time, as a one-man shop, I would be wasting a lot of my time using portals.”Because some franchisors are incredibly focused on bringing on franchisees who not only have the capital necessary to join the network but are also committed to the brand and provide a great fit, franchise portals may not be the best resource — they cannot evaluate things like fit. However, in the case that a franchisor is simply looking to establish contact with someone who is financially capable, a portal may be the perfect avenue.

Do Franchise Portals Work?

1851 Franchise

Franchise portals, or web portals, are well known for providing a large number of leads at an affordable rate. Whether they actually work depends more on the franchisor’s expectations for the leads themselves.

do-franchise-portals-work

Mosquito Hunters

Photo of Pest Hunters and Humbug Holiday Lighting teams

Mosquito Hunters Triples the Opportunity: 3-in-1 Franchise Model Fuels Growth

mosquito-hunters-three-in-one-franchise-model

Shuckin' Shack

Photo of Shuckin' Shack Oyster Bar beverages

Shuckin’ Shack Looks To Expand South Carolina Presence With Growth in Florence

shuckin-shack-franchise-florence-south-carolina

United Water Restoration Group

The Importance of Quick Response in the Water Restoration Business: How United Water Restoration Group Leads the Way

the-importance-of-quick-response-in-the-water-restoration-business-how-united-water-restoration-group-leads-the-way

Senior Care Authority

Senior Care Authority Celebrates Major Wins and Welcomes Four New Franchisees in Q1 2025

senior-care-authority-celebrates-major-wins-and-welcomes-four-new-franchisees-in-q1-2025

Children's Lighthouse

Why This Hotel Franchise Owners is Investing in Children’s Lighthouse 

why-this-hotel-franchise-owners-is-investing-in-childrens-lighthouse

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Franchise Face-Lifts: Why Major Restaurant Brands Are Betting Big on Remodels

franchise-face-lifts-why-major-restaurant-brands-are-betting-big-on-remodels

How New Tariffs Are Causing Price Hikes and Surcharges for U.S. Businesses and Franchises - 1851

Tariffs Prompt Price Hikes, Surcharges as Businesses (and Franchises) Brace for Rising Costs 

tariffs-prompt-price-hikes-surcharges

Pizza Hut - EYM Group - Chapter 11 Bankruptcy - 77 Pizza Hut Locations Sold - 1851 Franchise

77 Pizza Hut Locations Sold After Franchisee Bankruptcy Filing

pizza-hut-franchisee-bankruptcy-eym-group

Jersey Mike's - Blackstone - Global Growth - 1851 Franchise

Jersey Mike’s Ramps Up Global Growth Following Blackstone Acquisition

jersey-mikes-blackstone-growth

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

&pizza - Fast-Casual Pizza Chain Begins Franchising - 1851 Franchise

&pizza Embraces Franchising To Fuel Bold New Growth Strategy

andpizza-franchising-ceo-mike-burns

CFOs See Recession as Likely in ’25; Why Now Is the Time To Water the Franchise Buyer Seeds

cfos-see-recession-as-likely-in-25-why-now-is-the-time-to-water-the-franchise-buyer-seeds

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Lindora’s New President Discusses Franchise Growth and the Future of Health and Wellness

lindoras-new-president-discusses-franchise-growth-and-the-future-of-health-and-wellness

Amateur Bodybuilder and Business Partner Bring Passion for Fitness to World Gym Franchise in Fulton, New York

amateur-bodybuilder-and-business-partner-bring-passion-for-fitness-to-world-gym-franchise-in-fulton-new-york

franchisee spotlight graphic with photo of Venetya Evans and Sylvan Learning logo

IT Leader Celebrates One Year of Sylvan Learning in Simi Valley: A Passion for Education and Technology Drives Her Mission to Help Students Succeed

it-leader-celebrates-one-year-of-sylvan-learning-in-simi-valley

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

Do Franchise Portals Work?

MORE STORIES LIKE THIS