What Should New Franchisors Expect When it Comes to Lead Generation?

When a newly minted franchisor is finally ready to start selling franchises, the inevitable first question becomes (and remains for the lifespan of the business): “Where are my leads?”

To figure out how to best approach to lead generation for new franchise brands, 1851 asked a few experts to weigh in. While their specific advice differed, they can agree that lead generation isn’t easy, and that doing it right requires a mix of techniques.

“There is no silver bullet when it comes to lead generation in franchising,” said Sean Fitzgerald, franchising veteran and chief development officer of No Limit Agency*. “Franchisors need to utilize a variety of marketing techniques to capture not just the quantity of leads they desire, but the right kind of prospects that will help to grow their businesses.”

Fitzgerald discourages a heavy focus on franchise portals, which had been the primary driver of leads for decades up until recently.

“The portals will deliver leads but the conversion of those leads to actual deals is typically the lowest,” he said. “Using a mix of targeted content marketing campaigns, PPC campaigns, retargeting ads, public relations efforts and social media advertising is where we recommend to focus, but it’s more of an art than a science.”

Jack Monson, director of digital strategy at Qiigo, highlights many myths when it comes to lead generation, which can cloud the minds of new franchisors.

“The biggest misconception in franchise lead generation is that you can’t sell a business online,” he said. “A lot of brands still struggle with thinking that it’s a fad, and that it’s for kids. This may have been true in 1998, but a lot of brands haven’t moved forward and are focusing on outdated methods. What worked ten years ago isn’t what works now.”

Monson adds that a lot of brands are beginning to understand the value of online advertising and marketing, but don’t realize that they’ll need to set aside a budget to make it effective.

“When it comes to social media, the next big hurdle to overcome for brands is accepting that it’s a paid platform,” said Monson. “It’s an advertising network, not a free messaging network. The good news is that it's the most powerful advertising medium in history and that the people who understand that are going to be the frontrunners. It’s actually the most affordable network, but it’s not free, even when compared to other social networks and other online capabilities. You can’t beat Facebook pricing. How else can you reach thousands of people for $50?”

Monson and Fitzgerald agree that investing in social media is valuable because of the targeting capabilities and the prequalification of leads. In addition, for emerging brands that already have a few locations, Monson encourages them to focus on their current digital presence before creating a plan for lead generation.

“Get the local social media pages and web page in order first, because candidates are going to be checking out the online presence before the brand even knows who they are,” he said. “That investment into local marketing is going to pay off during the validation process and will boost your brand’s image to those potential candidates.”

Monson and Fitzgerald agree that a strong franchise website is a key step that will boost a brand’s potential search results and give a strong first impression to prospects.

Monson notes, “You might be operating your business from your basement, but online, you need to look like a first-class operation in order to attract the right kind of franchisees to your brand.”