The Marketing Challenges of Finding New Franchises

The Marketing Challenges of Finding New Franchises

Many young brands make the mistake of taking the approach that more is better.

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April
15, 2021

4 min read

Opinions expressed by Entrepreneur contributors are their own.

The following is an excerpt from Franchise Bible: How to Buy a Franchise or Franchise Your Own Business, Ninth Edition, which will be released April 20 through Entrepreneur Press. Pre-order now via Amazon | Barnes & Noble | IndieBound | Bookshop.Anyone familiar with the franchise industry knows that one of the most coveted acquisitions for a brand is a new franchisee. Paramount to the success and growth of a brand, franchisees represent the foundation, adding breadth and depth to the influence and reach of the brand itself.Often referred to as the “Golden Goose,” franchisors are in constant search of the next best franchisee candidate. Good franchisors will take steps to ensure that the new franchisee is a good fit for the brand. It is important to both the franchisee and to the brand that there is a good match. Finding these candidates, however, is often easier said than done. And many young brands make the mistake of taking the approach that “more is better” and focus on the “sale” instead of the “fit,” and they often find themselves with disenchanted franchisees who no longer want to be a part of the brand any more than the franchisor wants them to be a franchisee.Related: The Franchisor’s 10 CommandmentsIn short, a good franchisor will not only establish clear guidelines on the ideal candidate for their brand, but they will also control as much of the recruiting process as possible. There are two primary ways to recruit candidates for your brand:1. Marketing and lead-generation firms. There are firms that are experienced in helping generate candidates for your brand. Like with any others method you choose, not all will be created equal. A good marketing firm should be experienced with finding candidates, should work collaboratively with your brand and your management personnel and should offer you some semblance of control over the process. Like with any marketing strategy, this should also be data-centric, have discipline and flexibility and represent your brand properly in the marketplace. Most marketing firms will operate on a subscription basis. This has mitigated risks. If they can produce good, quality candidates, it’s likely to cost you less in the long run, in comparison with the consultant commissions. However, the subscription approach usually implies you are paying as you go for marketing efforts, and depending on your sales cycle, it may take some time to recover your investment.2. In-house systems. In the early stages of a franchisor’s development, there is probably no one more qualified to help a candidate understand the value of investing in the brand than the founder. After all, it is the passion for the product or service that the franchisee is investing in anyway. However, founders are usually busy running their business and managing the locations in some day-to-day capacity.So, for an in-house system to work properly, the franchisor is going to need internal talent who can represent the brand with the same passion as the founder. What’s more, they will need to have both client services and sales-business acumen, and the franchisor will have to provide them with tools to properly seek out and engage candidates. These systems will likely include email efforts, calling, social media efforts like LinkedIn, mailing efforts and the like. The executives will be responsible for helping develop the system as well as keeping up with the candidates in their various stages of development. Regardless of the methods you choose, begin with the “fit” first. Making sure that your candidates are a good match for your culture and your brand is critical to the long-term success of your franchisees and, ultimately, your brand.Related: The 10 Commandments of Franchise OwnershipHappy franchisees who are financially healthy will serve as good validators and will make your brand more valuable. In contrast, unhappy franchisees — or franchisees who are not financially successful — can cause long-term problems, or  worse yet, end up a failed owner. That isn’t good for the owner, and it’s a permanent detriment to the brand as it needs to be disclosed on your FDD. Find your match, and everyone wins.

Why referrals from friends are still key in the digital world

Why referrals from friends are still key in the digital world

April
15, 2021

7 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

Last year, just as the pandemic was about to start , I took on the role of CEO of a technology platform of brand ambassadors and influencers: VoxFeed . As I had no experience in the world of digital marketing, I immediately set out to investigate this by interviewing brand managers, agencies, among other experts in order to get an idea of how the market works. I immediately realized something strange. No one seemed able or willing to explain what the real return on their investment was in their digital marketing campaigns. I got confusing responses about engagement rate, reach, sentiment, and so on, and it all made even less sense when it came to “display” or “banner” type ads. Display is an online advertising format in which ads are displayed as banners on landing pages. If, hypothetically, you spent 20 thousand pesos on ads of this type on Facebook or Google , what would be the real and measurable impact in terms of number of sales or number of customers acquired? I could never get a direct answer. So I started researching the available statistics, not by company, but by industry in general. The results I found and the conclusion they point to are quite shocking. Could it be that the vast majority of money spent on digital marketing has NO measurable effect? A crazy statement, but stay with me. I’m not talking about ALL of the marketing, just the nearly $ 60 billion spent on paid display ads around the world, according to Statista. Let’s consider the following: For every 1,000 banners presented, SIX of them receive clicks (= 0.6%). 60 percent of THOSE clicks are reported as errors (big toes), so we’ve now reduced display ads that are intentionally clicked to 0.036 percent. You are 475.28 times more likely to survive a plane crash (or have twins or win the lottery) than clicking on a display ad. In 2020, 42.7 percent of people were using ad blockers (and the number is still increasing annually) – meaning that nearly half of spending goes to ads that no one will ever see. Without an ad blocker, the average person in the US is exposed to between four thousand and 10 thousand ads… every day! Do you think those ads that follow you everywhere work? No. Once an ad is viewed 40 times or more, the impact on sales is really negative. Surprisingly, it turns out that people don’t like it when they spy on them and follow them all the time. With these numbers it would be clear that banner ads are a waste of time and that nobody should bet on them, right? Wrong! Spending on display ads accounts for the majority of all digital spending and, according to Statista, is expected to grow more than 11 percent in 2021. How is this possible? Why do we spend so much when we receive so little in return? I have a theory: have you heard of the story of the frog in boiling water? The temperature of the water rises so slowly that the frog does not recognize the change until it turns into frog soup. In this analogy, we are the frogs. Display ads were new. Because there were so few of them, the click-through rates (CTR) were excellent (the first banner ad had a 44 percent click-through rate!). As word spread and more and more advertisers started using them, we collectively developed advertising blindness. As the channel became saturated, its effectiveness slowly but steadily diminished until it ended up where it is now: very close to zero. Then came the pandemic and those who invested in real-world advertising (billboards, flyers, etc.) migrated their budgets to digital advertising as we all began to spend countless hours staring at our screens due to lockdowns. Digital ad spend skyrocketed, ad saturation became hyper-saturation, and response (CTR) dropped by 45 percent. So we spend more on banners and displays and we get less. That fact seems undeniable. But the big question is: Why is no one willing to point to the elephant in the room? What’s going on here? Is it a global conspiracy? Have we collectively lost our minds? I suspect the answer is much less glamorous and has been in front of us the entire time. Virtually none of the people who make spending decisions have a vested interest in looking too closely at ROI. Large companies distribute the budget to the Marketing Manager and then it is filtered out to individual brand groups and brand managers. Most of the purchase of display ads is done through large marketing agencies, either directly or through programmatic platforms. No one in that chain of command would benefit from pointing out that the millions of dollars spent have virtually no impact on purchasing behavior. In fact, they would rather not know. It’s not that you CANNOT calculate the impact on sales, it’s just that the answer you would probably give would suggest stopping. We don’t know because we don’t want to know. I know what you’re thinking: As a newbie in this industry, I don’t know enough about how it works to make these claims. Okay, that’s fair, but if you take a step back, remove the buzzwords, and just take an honest look at the most basic data, you have to conclude that something is wrong. We spent $ 160 billion in 2019 on display ads, was the intentional click-through rate on those around 0.03 percent? I can’t find any data to show that that money had any impact on buying behavior. However, some companies are realizing this and are opting to go back to basics instead of banners: recommendations . According to Nielsen, 92 percent of people around the world say they trust recommendations from friends and family more than other forms of advertising. The reality is that nobody likes to be sold, but we do recommend it. That is why 9 out of 10 consumers say they try new products when they are recommended by their acquaintances against 2 out of 10 who do so when relying on digital ads. For this reason, more and more brands are choosing to invest in referral marketing strategies and turn their satisfied customers into being an active part of their campaigns.

3 Presentations You Can Automate to Reach More People

3 Presentations You Can Automate to Reach More People

July
26, 2017

6 min read

Opinions expressed by Entrepreneur contributors are their own.

The following excerpt is from Dan S. Kennedy and Dustin Mathews’ book No BS Guide to Powerful Presentations. Buy it now from Amazon | Barnes & Noble | iTunes or click here to buy it directly from us and SAVE 60% on this book when you use code CAREER2021 through 4/17/21.There’s no limit to the types of events you can create. Do you want more leads? You can automate it. Do you want more sales? You can generate them daily. Do you want to deliver paid content on autopilot? Done. Bonuses? Great.Related: 2 Secrets About Online Media PresentationsLet’s look closer at three different case studies: a strategy session close, a direct product sale, and one in the financial industry.The strategy session closeIn more complex sales, it helps to speak to someone personally. These types of sales usually involve higher-ticket items or a lot of delivery variables.Case study: Strategy Session webinarOrganization: Clients on Demand™Russell Ruffino is the entrepreneur behind Clients on Demand™. Ruffino is one of today’s most successful internet marketing gurus.The challenge:Rufino’s business success depends on generating leads, establishing trust, and qualifying the leads to guide those that are appropriate to the next step — a Strategy Session on the phone. Ruffino experimented with all different types of lead-generation strategies to achieve those goals, including downloads, mind maps, minicourses, videos and even a book. They were doing well but not as well as he wanted.Then he tested an automated webinar. The webinar became his most successful strategy up to that point. His business was growing, but it wasn’t doing what it should have been doing.The automated webinar software he was testing wasn’t StealthSeminar. He noticed the other automated webinar systems he tried weren’t stable — sometimes they worked, sometimes they didn’t.In addition, he noticed none of the other automated webinar software converted for mobile traffic, which now makes up 51 percent of all traffic. StealthSeminar alone is the only one that runs webinars correctly on iPhone. All others show a video length and fast forward button. That isn’t good if you want to control how your attendees consume the content.The solution:Ruffino tried StealthSeminar and was amazed with the results. His business soared 1503.33 percent initially and since then, much more. Ruffino has found the best way to connect with potential clients, build trust and qualify them is via a StealthSeminar.Related: 6 Steps to Creating the Ultimate WebinarHe has a fantastic webinar that his attendees love. During the webinar, the attendees, who have no previous knowledge of Ruffino, are introduced to him and his system. Ruffino provides terrific content, builds trust, makes the connection with each attendee, and then drives those who are qualified to make an appointment. A link appears for the attendees to click on to set an appointment for a Strategy Session.In the Strategy Session, the prospect learns more about the program and is further qualified. If the match is appropriate, the offer is made for the individual to join Ruffino and Clients on Demand.The direct-sale webinar In simpler sales, speaking to someone isn’t required and often can cost you sales. These types of sales typically run from $47 to $2,500. The sweet spot for direct-sales webinars is $197 to $1,497.Case study: Direct-Sale webinarOrganization: Forex Trading HispanoChristian Helmut is the driving force behind Alfonso & Christian. They are business growth consultants running multiple businesses and multiple different webinar types. They help people scale and automate their processes. Let’s look at a direct-sale webinar.The challenge:Helmut wanted to automate the sales cycle process. In addition, his company wanted to provide value and position itself as the best inside the marketplace — all without human intervention.Helmut and his colleagues tried different ways to generate leads and establish their expert positioning. While successful, it didn’t satisfy the goals they’d set for themselves. They weren’t getting the number of leads they wanted at an acceptable cost to them. They also weren’t selling the number of products they knew they could.The solution:Helmut then created an automated webinar, and started to drive cold traffic from Facebook and YouTube video ads to the automated webinar. Helmut’s list started to grow rapidly, and the company’s positioning reached the top of the marketplace. The automated webinar started to generate sales on autopilot. In fact, it’s getting a 15x ROI. For every $1 the company spends, it gets back $15 — all automated.The financial industry webinar The financial industry is also being heavily impacted by automated webinars. In the past, a lot of individuals would do seminars in a live setting, such as a restaurant or hotel. Now it’s getting harder and more expensive to get people to attend such events. The online webinar allows you to reach those individuals much more cheaply and make it much more convenient for them to attend from their home or office.Case study: Financial Industry webinarOrganization: AnnuityCheck™Steve Hutchinson is the founder of AnnuityCheck™. He has a lifetime of experience in the financial industry and wanted to maximize his success with AnnuityCheck, a SaaS fintech firm.The challenge:Hutchinson wanted to help financial advisers automate their financial calculations and maximize the retirement income they generated for their clients. He spent the first two years doing live webinars and would waste 10 to 20 hours every week getting prepped for one or two webinars. It was a drain on him mentally and physically. It took away from other professional and personal activities.Related: 4 Secrets to Becoming a “Presentainer” Who Grabs an Audience’s AttentionThe solution:Hutchinson finally turned to automation via Stealth Seminar for his webinars. He found a “whole new marketing gear” in online optimization and finally turned to the same type of automation his clients depend on to streamline the process. “Now I can update a simple file a few times a month as needed and get my life back,” says Hutchinson.AnnuityCheck did its first two automated webinars on a Friday through Sunday and Monday. The statistics show they had 538 registrations, 272 attendees, and 46 signed up with credit card — 17 percent.As you can see, there are a lot of benefits to creating your own automated webinars. They’re a powerful tool that can be used for many different applications, such as list building, generating leads, or converting sales. Getting your webinar up and running is easy to do. I wish you much success!Did you enjoy your book preview? Click here to grab a copy today—now 60% off when you use code CAREER2021 through 4/17/21.

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