Why traditional franchise lead generation no longer works

Attend every franchise conference over the next five years, and I bet the topics of conversation you hear will remain fairly similar. The same people will talk about the same things — and most likely, five years from now, a majority of those in franchise sales will be talking about how they need more leads, need to close more deals and need more support in the process to accomplish set goals. Rewind five years ago, and the conversations were the same. How do I know this? Because I am Franstradamus. Perhaps I am giving franchise sales leaders too much credit, though, because rarely do these conversations extend past the “find me more leads” part. Why? In the most simplistic way, it’s because of unrealistic expectations, which, unfortunately, could be the primary challenge in all forms of business. In order for the franchise sales process to first improve and then excel, franchise sales leaders are going to have to start changing the tactics to how they generate leads — not by thinking outside the box, but more so in it. Although I am not a hunter, franchise lead generation is a lot like hunting. If you are trying to kill a duck, it is going to be really hard to hit it using a rifle. Why? A single bullet will require a sharpshooter — a really sharp shooter — which is rare in franchise development. I am going to use a shotgun shell so that the 200 pellets give me a better chance of hitting that target. With a shotgun, I don’t need all 200 pellets to hit the duck, just one or two. Now, this is where the confusion comes in. Brands rarely separate the tactics to specific audiences. A shotgun approach only works when the target is specific. If I know I am shooting the duck, then all of my efforts and focus will be directed at shooting the duck. That’s my precision. In franchise development, that duck is your prospect, and your prospect needs to be very specific to your brand. The more specific you can get, the better you can spend your money on attracting that prospect in. As Franstradamus, I know that as the conferences heat up in 2015, very little of what I say will be applied for brands. As the year progresses, we will be talking about the same development issues then as we do now. People are afraid of change. People are afraid of trial and error. People are afraid of not doing what they have always done. For this, many brands will end 2015 shy of their goals. But, let me be very clear, this doesn’t have to be an absolute. At No Limit Agency*, we have been testing theories for the last seven years. And frankly, we have led a lot of bad tests. Yet, at the same time, we have led a lot of good ones. The ones that worked then may not work tomorrow. In our plans for 2015, we feel as if we have found the fountain drip of franchise growth. However, those theories are not absolutes. Neither is print, radio or TV. Your franchise sales process doesn’t work, because you don’t have the right tools. When you have too high an expectation, followed by the drive of working for commission, followed by a limited budget, followed by a confused marketing strategy, followed by the need to sell and not recruit, you are set up to fail. The best people in franchise development are process people first, and people people second. As you evaluate your plans for 2015, be willing to adapt: • Make sure your goals are reasonable. If you have to sell 10 agreements, have a budget of $120,000 at least. • Focus your spending in only the markets you can grow in. Meaning, if Chicago is a target market, then spend those dollars in Chicago. Five units in Chicago will do much better for your brand than one in Dallas, one in New York, one in Miami, one in Indy. • Have a great website. If you don’t, you are already killing your process. That’s where people inquire. • Measure. Measure your PR. Measure your marketing. Measure your advertising. Measure your PPC. • Leverage the people you have. People sell brands. Simplify your target. Don’t fish in a giant pond – focus on your puddles. If you want more advice, find those who are willing to share real information. You will most likely find these people hanging out around the bar at conferences versus speaking on stage.