27 January 2015
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Don’t Get Completely Trapped in Your Computer

The Internet is undeniably a vital tool for the marketing and ultimately the sale of franchises. According to the 2015 Annual Franchise Development Report 42 percent of these sales have developed through online avenues such as Search Engine Optimization (SEO), Ad Portals, Pay-per Click, and even social media.

However convenient and cost effective the Internet is in attracting new franchisees, there is another 58 percent of strategies separate from the World Wide Web that helps bring home the bacon.

It is strongly recommended that you have a multi-tiered sales strategy that will include sales sources including referrals (30 percent) from existing franchisees, brokers (16 percent), print (3 percent), and others (6 percent). Others includes methods such as networking, trade shows, and direct mail.

Developing a relationship and leveraging the experience and success of franchisees can be crucial in the overall development of the franchisor. Many of the referral programs that exist involve a referral fee. The median fee in the industry according to the report is $4500 with around 15 percent saying they pay $10,000 or higher per successful lead.

To help ensure that your organization is utilizing its resources in the proper programs it is extremely important to track your leads and ultimately your sales so that you can monitor your cost per lead and cost per sale. The median cost per sale in 2014 was in the neighborhood of $8000 and only around 60 percent of franchise companies track this.

 

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