Are Franchise Brokers Or PPC Cheaper?
One of the most common questions that we get from prospective clients is, “Are Franchise Brokers Or PPC Cheaper?”. This is actually a fabulous question, but the answer might not be what you think.
In general, the Cost Per Sale (CPS) via PPC is going to be about 1/2-1/3 of the cost of using a Franchise Broker Network. Using a Franchise PPC agency like us here at Lead PPC typically runs about $5,000-$15,000 per sale with most clients falling in that $7,000-$12,000 range. Conversely, the average CPS of using a Franchise Broker Network is going to run you about $25,000-$40,000 per sale with a premium being charged for newer franchisors that have few non-corporate stores and not much data around an Item 19.
But, Which Should I Use?
The answer of whether or not you should use a Franchise Broker Network or hire a Franchise PPC Agency is actually…. both. But, there’s an order to it. Typically, you’re going to be best off hiring a solid Franchise PPC Agency FIRST. Since the Cost Per Sale is generally quite a bit cheaper, you can and should take profits from your PPC efforts and instead of growing your ad spend from around $1,500-$4,000 / mo. with Google and Meta Ads up to $5,000-$15,000 / mo., you’re actually better off keeping your ad spend at that sweet spot $1,500-$4,000 / mo. range and going and hiring 2-3 good Franchise Broker Networks like IFPG or Franserve.
Which Broker Networks Do You Recommend?
We see a lot of our clients go with a combo of IFPG and Franserve. However, FBA and TES are also solid as well.
Below is a list of what we consider to be the Top 13 Franchise Broker Networks.
More Thoughts On Franchise Broker Networks Versus Franchise PPC
When it comes to franchise expansion and growth, there are a multitude of strategies a franchisor can employ. However, two key players have continuously held significant roles in the industry: franchise brokers and franchise PPC (Pay-Per-Click) advertising. Both have their unique advantages, and the choice between the two usually depends on a franchisor’s specific goals and circumstances.
Franchise brokers are essentially consultants who guide prospective franchisees through the process of buying a franchise. They have a broad understanding of the franchise marketplace and can provide invaluable advice and support to both franchisors and franchisees. The strength of a broker lies in their extensive network, industry knowledge, and the personalized service they offer.
On the other hand, franchise PPC advertising is a digital marketing strategy that allows franchisors to directly reach their target audience online. With PPC, franchisors only pay when their ad is clicked, thereby ensuring that their marketing budget is spent efficiently. PPC advertising can provide immediate results and offers measurable metrics, enabling franchisors to continuously optimize their campaigns for better performance.
However, the question arises – which strategy is best? The answer isn’t straightforward as it largely depends on the unique needs and objectives of the franchisor. If a franchisor is looking for a more hands-on, personalized approach to recruiting franchisees, then working with a franchise broker might be the best option. This approach can be particularly beneficial for new or smaller franchises that don’t have an established brand presence.
On the flip side, if a franchisor wants to leverage the power of digital marketing to reach a wider audience and generate leads quickly, then PPC advertising may be the way to go. This approach can be especially effective for franchisors with a larger budget and a well-known brand.
In conclusion, both franchise brokers and franchise PPC advertising have a place in a franchisor’s expansion strategy. The key is to understand your unique needs and objectives, and choose the approach that best aligns with them. Remember, the goal is not to choose between franchise brokers or PPC advertising, but to effectively utilize both strategies to achieve optimal growth and expansion.
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Entrepreneur with a focus on Lead Generation, Google Adwords, Bing Ads, and Conversion.