How Do Franchise Brokers Get Leads?

If you are considering a career as a franchise broker you are probably asking yourself and others, "how do franchise brokers get their leads?". It's a good question and one that I will try and help answer. There are a few "broker models" out there and a lot of these models are defined by the method in which a broker finds and works with their candidates.

1. Internet Based Leads

This is probably the most common method brokers use to get leads. Most franchise broker organizations such as FranchiseOfficer or The Business Alliance buy leads from a number of different sources and then sell them to their brokers. Franchise brokers may also buy leads directly from many of the franchise sites online such as DreamFranchises.com. Generally speaking leads will cost a broker $15 - $30 per lead and are purchased in packs of 25, 50 or 100. Leads will range from someone specifically requesting information on one of the franchises a broker represents to a general "help me find a franchise" lead. The broker contacts the lead, discusses their situation and goals and hopefully helps them find their perfect franchise, thus earning a commission.

Internet leads can be a great source for franchise brokers but they can be frustrating as well. The internet makes it so easy for a person to request more info that you can rest assured not all leads are truly qualified or serious about owning a new business. In addition it's easy for someone using the internet for research to end up in the hands of multiple franchise brokers thus reducing your chances of putting together a deal.

2. Face To Face Consulting

Depending on who you ask, some will say this method offers the highest percentage of deals done thus is how some of the most successful franchise brokers conduct their business. While I don't agree 100% that may just be my style as I certainly know some very successful franchise brokers who use this method exclusively. Basically as a franchise broker you will attend things like chamber meetings, entrepreneur meetings, etc. and just like any sales effort make contacts, collect business cards and so on. Most brokers will then contact people they feel would make great franchise candidates and invite them to lunch or coffee and discuss a certain opportunity.

Again, for the right broker this can indeed be the best plan, I personally don't care to take people to lunch everyday - but that's just me. I like working in my jeans. If you are they type that likes putting on a tie and meeting new people then this could be your best method of growing your franchise consulting business.

3. Conferences and Seminars

Conferences and seminars can certainly be the most impressive and professional method of growing your franchise consulting business. Many brokers will rent auditoriums, private rooms in restaurants or company board rooms to discuss franchising and franchise opportunities to groups of potential franchisees. This method can certainly be the most powerful way to establish yourself as a true expert on the industry and when done correctly can lead to many franchise deals.

The challenges with this method are the costs that can be associated and the risk that no one shows up. Renting a small auditorium, providing coffee, printing materials, etc. only to have 1 or 2 people show up can be a big waste of money. At the same time, having 50 people show up can almost guarantee you will help at least one or two people in your group buy a franchise. Because you are the person at the podium people will automatically perceive you as the expert (provided you give a good presentation) and will confidently turn to you in the future should they have questions about franchising.

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