Hey guys. In today’s video, I want to talk to you about how to create a referral snow storm. This is just a lead gen hack that is going to allow you to grab a ton of clients. I’m just going jump on to my computer and walk you through what we’re doing here.
Alright, so first thing you want to do is head over to Google, type in franchises, and what you’re going to want to do is scroll down to the 2017 top franchises from entrepreneurs’ franchise list. This is just a great place for you to mine relationships and gather a ton of information. Everything’s disclosed here for you and there’s just a lot of benefits of working with franchisees and franchises, if you know what you’re doing.
Alright, so, we’re going to skip over McDonald’s. Some of the bigger franchises, they’re really dialed in and the likelihood of you breaking into them, it’s a lot more effort. If you’re later on and you’re familiar with working with franchises maybe you’ll go down that path at that point. What I would do is I would scroll through and look for things like … Maybe I’d look at the math center, maybe I’d look at a fitness center, something like the massage center here. What this is is it’s a business that sells memberships for massages. Why they do that is they know that if you buy a membership for $60 dollars a month you’re going to pay $720 dollars over the year, which is greater than the amount you would pay if you were paying out of pocket at $80 dollars a massage.
What this page does is it gives us a lot of information. It tells us what their initial investment is, what the high investment is, the number of units they have, the change in number of units, so how they’re growing. Tells you a little but about the business, when it started and when it began to grow, what year they started franchising. Most importantly, what it starts to tell us is what kind of support they provide. Purchasing, co-ops, newsletters, meetings, toll free line, grand opening, internet meaning they have a national website that everyone uses, they provide the security field operations.
Here is where it gets into our area of expertise and we really want to focus, is marketing support. They have co-op advertising, they have ad slicks, they have a national media and a regional media play. Ultimately, what you need to understand is some of the things that franchises mandate of their franchisees. One of them is they have a percentage of revenue that gets devoted to national marketing. Then they have a percentage that goes to regional marketing. Then they have a percentage that they have to spend on local marketing in their area. With a lot of these franchises what happens is they don’t have control over the website. Meaning that the particular location in a particular town just gets that page and the national kind of internet strategy is deployed to drive traffic. They’ll work on things like Google My Business and they’ll work on things like search engine optimization for the site to create domain authority and hopefully have it ranking in the local area.
But, ultimately, they’re left on their own to do all the kind of grass roots or guerrilla marketing in the area to create inbound traffic and actually sell massages, in this case. This is the perfect opportunity for us to step in and say, “Hey, we know this franchise owner is not a marketer.” They’re in the business to take over this franchise, they’re given the playbook. They’re just watching the playbook and running the playbook but there’s a gap. They have to be able to bring people from the local community into their massage parlor, studio, whatever you call it, and sell them memberships.
It’s just a perfect opportunity where you can come in and show them about Facebook ads or PPC or auto-responders, retargeting, landing pages. There’s a bunch of stuff that we would be able to bring to a business like this and the way I would approach this is I would look at the number of franchises that are there. In the U.S., there’s 1,184, zero owned by the company. If you can break into one, speak to that business owner, understand their pain points, understand the business from the perspective of what is a client worth? What is an average customer come in and how long do they stay? If they spend $60 dollars a month and they spend six months with that business, then an average customer generates $360 dollars. What’s the profit on that? What can they afford to spend? What is the customer acquisition cost that’s allowable plus your marketing fee that would work where you build out that funnel?
As soon as you have that, you can perform this initial one basically for free and call it research for your platform. You now have 1,184 other clients who have the exact same problem. The beauty of franchises is, generally speaking, somebody has a franchise and it’s working, they’re likely going to buy other franchises. They may have the rights to open two or three or four in the vicinity, and ultimately, they’re going to need your services at all of those. More importantly, if you get a referral, if you create a case study and you build out proof that you can deliver customers at an acceptable cost, then the other 1,184 locations are just prime candidates to want to work with you.
This is how you create that perfect referral storm. You go in, you serve this initial business owner, you understand their pain points, you get to understand their business model, you build out an attraction strategy that brings in their ideal prospects, converts them at a cost that they’re accepting of, and they have to spend this money anyways. This is the key point to understand. Franchises dictate that franchisees spend a certain amount of money on local marketing. Which means they have a budget to be spent.
If you’re coming in specifically on the front end and saying, “Hey, I want to work with you. I want to do some research, I want to build a case study,” and they allow you to do that and you go in and you invest your time with this one franchise, look at this as research. I’m not proposing that you spend six months. This is not SEO. This is understanding how to build a Facebook Ad campaign, or this is understanding how to use PPC, or this is understanding how to mine their existing database with email marketing to bring more people back in. Maybe you’re going to create a referral system. Whatever you’re going to do for their business to help them attract more customers is something that you’d be able to deploy for the rest of the people in the franchise.
I’m just going to pop back and show you. There’s a ton of these in here that you would be able to reach out to. Again, fitness centers are great. Hair places could work. HVAC systems. HVAC systems are great, this is something that I’ve done, I’ve played in this niche. Not necessarily national franchises but definitely co-ops where there will be 28 or 30 in a local area. You break in with one and once you do and once you have a system that shows them, “Hey, I can predictably bring in clients for you at a predictable rate that’s acceptable to you,” they’re more than happy to introduce you to their counterparts in their co-op because they all have protected territories. It’s not a matter of they’re worried about their secret sauce getting leaked out to somebody else. They benefit from that. That’s the reason they join a franchise or a co-op is they have that protected territory so they’re not worried about somebody coming in to their territory with this particular method.
It just opens up that opportunity and I would preempt it certainly if I was giving away free services where I was working with a business owner to create this case study, it would be something that I would mention at the beginning. “If we provide this for you, and we generate you business at a predictable rate that’s allowable and it’s something that you would want to go forward with, will you create a video testimonial? Will you create a written testimonial that we can go to either the Director of Marketing for the actual franchise,” because they also have an incentive to promote you. If you come up with something that is going to build their business, the marketing director has a national kind of portfolio, but they also want to see the franchise work because the more the franchisees make, the more the master franchise makes, the more the business brings in, right? It’s kind of a virtuous cycle.
The people at the top of the franchise want each franchisee to do well, so if you have something that’s working they’re more than happy to promote you to their team of franchisees once you show them that you can deliver results. This is just a great way for you to create that referral snow storm by working with one, figuring out a problem they have, using your marketing chops to solve that problem, and then getting a testimonial or a case study and leveraging it for a ton of lead gen.
Anyways, I hope you got something from this video. If you did, definitely hit the subscribe button, give me a thumbs up, I’d love to hear if you have any questions or comments. Specifically if you have any questions about how I would implement this, specific to an industry or a franchise, I do have some kind of past experience with franchisees. I’m happy to engage with you here on the channel and, as always, I appreciate the thumbs up so that YouTube gets a little bit of engagement as do I, and help spread the word of the channel. I’ll see you in the next video. Thank you very much for watching. Stuart Trier from SEO Cheat Guides.