Attention Franchise Development Professionals: What Are You Doing to Monetize "Cold" Franchise Buyer Prospects?

By Tom Miller

This article discusses how franchise development people can have an alternative opportunity for franchise prospects that may not be able to purchase a franchise.

We are currently operating in a very challenging marketplace where several hurdles stand between a franchise buyer prospect and their dream of owning a business.  As the overall economy improves certain of these obstacles may become easier to deal with, but for the time being you should be aware of the substantial financial benefits created by those choosing to successfully operate businesses out of their homes.

These opportunities like any business come in a wide variety of shapes and sizes.  However, they all offer two basic financial advantages to aspiring entrepreneurs:  1) substantial tax savings, 2) the opportunity to develop a supplemental income stream.  I would strongly suggest consulting a trained tax professional for additional information on the former, but for the time being I will cite renowned tax expert Dr. Ronald Mueller who reports that average American households can typically save between $3,000 and $6,000 per year in aggregate tax reductions.  When these savings are coupled with an opportunity to partner with a reputable, national organization offering quality goods and services at reasonable price point, the individual is presented with an opportunity to earn additional income.  The Wall Street Journal recently published a 40-page insert on the direct sales industry, which includes a great of information and insight on the key players in this marketplace. 

I believe it makes a great deal of sense for franchise sales and development personnel to consider offering home based business opportunities to 'cold' buyer prospects as a mutually beneficial "Plan B" once that party has made a decision to pass on whichever concepts previously discussed.  As an example, a company by the name of Team National (www.bign.com) offers a group buying membership program allowing individuals and small business owners to pool their collective buying power to generate substantial savings on a variety of brand name services and products that they already use on a daily basis.  It is similar to direct buying clubs like CostCo and Sam's Club, but provides a much wider spectrum of member benefits.  In the case of Team National, the investment is only $2,195 and the savings are sufficient to often repay the investment several times over in a very short period of time.  This is a way to share a strong value proposition with individuals looking for a low-cost home business opportunity while also helping to monetize 'dead' franchise prospects leads. 

For additional information please feel free to contact Tom Miller at tmiller@alamosaadvisors.com or (612) 963-4004.