Franchise Mathematics; How Many More Franchise Broker Networks Do We Need? 10? 20? 50? 75?

                               

Franchise Consultants. Franchise Brokers. Let's do some Franchise Math.

Well, I haven't written a post that's totally guaranteed to decrease my future franchise brokerage friends in a while, so what the heck. After all, I'm the No-Spin Franchise Blogger, right? Ok. Here goes.

There are way too many franchise consultants/brokers in the marketplace. How do I know? I am one. I've even written about this subject before.

Let's just assume that I actually know what the heck I'm talking about. If there are already too many of us vying for the attention of a relatively small number of serious prospective new franchise owners, how is it that every month, {It seems} there is a new franchise brokerage outfit starting? Am I missing something here? I mean, I should know right? I interact with franchise consultants and brokers almost daily, and know how busy or not busy they are. Heck, some of them even subscribe to this blog!

Could it be the way business is being done? No. Impossible! Well, look at the marketing messages offered up to potential new franchise brokers;

• Become an entrepreneur!
• Small one time up-front fee
• No experience required!
• Professional training available
• No cold calling/Leads provided
• No inventory/No employees
• Executive level income
• Work part-time or full time

Donald Cranford, a fellow franchise blogger over at Franchise Direct, allowed me to dissect the marketing tactics above, plus a heck of a lot more, in a guest post I did for Franchise Direct, recently.

Read "Franchise Broker Networks; How Many More Do We Need?" over at Franchise Direct.

What do you think?

Comments

[Leads]

Great post glad to know about this formula you rock

[The Franchise King]

TJ,

I can share my secret sauce with you. But then I'd have to ...

The Franchise King
Joel Libava

[TJ McCue]

Good post, Joel. So, what's the formula for just getting to the 20%. I'm tired of the 80% ;-).

I'd like to see another post on the lead generation details. Makes total sense that cold calling would not be the way to go, but share some ideas on the lead gen work you do. Lead gen is part of what I do and I love learning about it from other industries. I know some of this is the secret sauce you can't tell me about, but say what you can...

[The Franchise King]

Thomas,

Thank you so much for commenting. {And agreeing}

it's the usual 80-20 rule that applies here.

The Franchise King
Joel Libava

[Thomas Scott]

I agree there are too many!
There are not enough good ones, though. I'm not sure why most brokers get into the business but its rare I meet one that really understands the industry or has a real handle on what advice to give. As a result the majority of leads we get from brokers are poor fits. Some are poor fits for owning any franchise and others are clearly not a good fit for ours. The few good brokers out there, though, have more business than they can handle. I see a trend in these brokers with them generating less web leads from portals and doing more old-school local networking and creative blogging/ social media.