Education

Presented by Larry Carnell CFE,CBI,CFB
WHY VIRTUAL EVENTS: Virtual Events Statistics Report Below Intro

Intro -What Consumers Prefer - Over the last few years many other industries have already discovered the preference and migration of consumers to attend virtual events over live events and internet portals - of particular note is that these consumers tend to be better educated and have higher financial resources - IDEAL FRANCHISE PROSPECTS. Others have recognized the declining lead to close ratios of internet portals and declining attendance of trade shows. Many companies in other industries have completely eliminated their live events and gone virtual. A recent national convention illustrated that many leaders in the industry are experiencing 60%+ to 300% growth (report below). This resource is now being made available to the franchise community - unlike other events, FreeFranchiseExpo has been created and cooperative supported "within" our franchise community by several of the top experts and franchisors – including service providers.

THE IMPORTANCE OF SOCIAL MEDIA & WHY VIRTUAL EVENTS ARE SUCCEEDING AND WILL GAIN EVER GREATER APPEAL - We have all seen and recognized the dramatic surge in the use of social media... for those that are educated in sales, marketing and training - this was predicted... The most effective marketing efforts use psychological and motivation attibutes to create not only better traffic but better engagement. This explains the past migration of consumers looking for business opportunities from newspapers, to magazines, to the internet, to brokers, to social media... and now the migration to virtual events. History is simply repeating itself... Consumers have ALWAYS migrated toward resources that provide the following:
• Better Convenience - Easy Access (No travel, no parking, no entry fees)
• Low Costs (FreeFranchiseExpo is FREE to attendees)
• Better Education - buyers want to be EDUCATED not SOLD
• Credible information from experts (Look at the success of LinkedIn)
• Quicker Response (Look at the success of Facebook, instant chat, texting etc.)
• Interactivity (Look at the success of Wii entertainment systems)
These desires explain the migration from virtually every declining lead generation resource to newer channels - and for the savy and smart... an indication of where the BEST candidates will be... Virtual Events ARE the Next Evolution in Lead Generation !

The IDEAL CANDIDATES: Are often Better Educated, Better Skilled, and have Better Financial Resources - Those candidates have ALWAYS tended to follow the newest technology and resources that provide the above attributes.
FreeFranchiseExpo has been specifically designed to deliver what consumers want and more specifically what your Ideal Candidates desire.

Virtual Events
Get the latest information regarding virtual events, online conferences, and online tradeshows
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Virtual Edge Summit How to Make Your Next Virtual Event Fascinating

Virtual Event Statistics
On December 16, 2010, in Virtual Event Statistics, Virtual Event Trends, Virtual Events Market, by Ike Singh
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Virtual events by the numbers – show me the data!
There is a saying that goes – “In God we trust – all others bring data”. In the world of virtual events there is one statistic that no one is denying. It’s big business. How big? Well Market Research Media’s forecast shows that the worldwide virtual conference market is forecasted to grow at a compound annual growth rate (CAGR) of 56% between 2010 and 2015 and to generate $18.6 billion revenues over the same period.
Virtual Edge Institute, organizers of the upcoming Virtual Edge Summit, (Social27 is a Gold Sponsor), took a look at all the surveys published in 2010 and put together a fascinating infographic as a resource for those considering going virtual, researching virtual or seeking to demonstrate the value of virtual. They highlight that worldwide the Global Meeting and Events Industry is worth $650 Billion ($230B in the United States alone) and as I mentioned $18.6 billion is projected to be spent on virtual events between 2010 and 2015. In terms of business value, exhibitors find virtual events good for attracting more participants (71%), extending global reach (62%) and one in five marketers have done hybrid events. In addition, 3 in 4 brand marketers anticipate trade shows will include virtual in the future. How’s that for data! However the devil as they say is in the detail so let’s dig a little deeper.
Virtual event market growth drivers – technology, economics, and customer experience
What’s behind this amazing growth?
• Improving Technology – For starters, the technology is finally catching up with the consumer’s preference for an always-connected lifestyle. Real time web, portability of content across multiple screens and more experiential transfer of information are all influencing factors.
• Favourable Economics – The turbulent recession and resulting push for travel reduction and operational cost cutting has had a huge impact on the redirection of conferences to a virtual or hybrid format. USA Today reports that leaders in the virtual events business are reporting that 70% of companies that it has queried are “producing, considering or interested in pursuing virtual events.” As they say, necessity really is the ‘mother of invention’. Not only that, the Virtual Edge Institute found that virtual events do in fact generate revenue. Sponsorships account for 49% of revenue, booth fees 44% and online banner ads 39%.
• Customer Experience – Finally, the virtual events business is philosophically based on agility and an intense focus on the customer experience. It has evolved with almost every virtual event and fine-tuned its ability to deliver a higher ROI product with decreased production costs and increased attendance.
A competitive market, with huge growth potential
As you might expect, not all companies in the virtual events space publically report their growth numbers. However, the ones that have announced their growth numbers show impressive results. For example, in July this year, one company stated that they are experiencing 60% YOY growth. Likewise, another noted they are very likely to see 300% growth in 2011.
As we move into 2011, the stars are aligning for continued growth in the virtual events market. As Business Travel Trends mentions, travel budget cuts and the tough economy continue to provide a tail-wind that can only benefit online event providers. For example, in a recent survey, carried out by IET ventures, 30% of traditional event organizers said that they expect travel costs to go up and 50% would consider a virtual event. Not surprisingly, 76% strongly agreed that cost is the primary concern when either organizing or attending an event. So the planets are aligned.
Virtual event benefits by the numbers
As previously mentioned, one of the key drivers of the virtual events market is the continuously improving event experience. This improvement can be seen in terms of event providers, the environment, and attendees.
• For Event Providers – Last year, an On24 survey of 5000 marketing professionals, showed how virtual events provide benefits for event providers. Along with the astronomical growth of the virtual events market, 74% of the professionals said they were interested in staging virtual events to save money. 50% were interested in virtual events to save time.
• For Attendees – The same On24 survey showed significant benefits for attendees. For starters, anyone can easily attend a virtual event, which was reflected when 63% of the marketing professionals said they were more likely to attend a virtual event than an in-person event. The biggest surprise of the survey was that many actually considered it easier to network virtually. 72% said they were equally confident interacting virtually, with 15% saying they actually preferred it. The ability to network virtually is a main concern of virtual event providers, and this survey suggests that virtual networking may have the potential to be better than physical networking. Whether they truly do is yet to be seen.
• For the Environment – According to ON24 spokesperson Kimberly Gengler, an average virtual event with 2,300 participants reduces carbon emissions by 3,300 tons, which is the equivalent of ~17,000 trees. Also, an average of 36,000 pieces of paper are saved per virtual event.
The future is in the numbers
These statistics show some of the strengths and the weaknesses of virtual events. From the numbers, it is clear that the virtual events market is experiencing significant momentum. However, it is still relatively young and is still finding its feet. One thing is for sure – the virtual events market is facing a perfect storm of innovation, favourable economic conditions, and changing corporate perceptions. These trends are already being felt in the industry. Tomorrow, they will be seen in the numbers.
About Ike Singh
Ike Singh Kehal is a seasoned business professional with 15+ years of marketing, sales, and business development experience. His latest company, Social27 was founded in 2007 to take advantage of the growing need for social media and game dynamics integration in virtual events. Prior to starting Social27, Ike drove numerous startup projects, including Indiabulls Retail, where he was CEO. Previously, he held various business strategy positions at Microsoft, spread over a seven-year period. Ike is a committed member of the virtual events community and contributes regularly to the discussion at http://www.virtualeventshub.com

Starting a business from scratch may be too much risk for some people, but taking the reins of an operating franchise or buying a non-franchise business may have some appeal. So, what does a buyer look for when buying an existing franchise? First, franchises are for a specific term, normally ten years with additional five year options. With each renewal term there is a renewal fee. This may be a percent of the current fee. So if you purchase a franchise in year eight of a ten year agreement, you can factor in the renewal fee into the cost of the business.

What if the franchisor does not renew the franchise at the end of the franchise term? If the franchise is operating as it should, then the franchisor must renew the agreement. The franchisor can not unreasonably withhold renewal. At the end of a franchise term there may be some requirements for renewal, for instance, with retail and restaurant franchises, they may require updating or modernizing the décor or purchasing new computers and software. Franchisors are in the business of franchising and in most cases have no interest in taking over your franchise. They know a franchisee does a better job of operating the business in their market…that's franchising.

What are the advantages of owning an existing franchise over a non-franchise business? Two important factors should be considered in weighing the decision of buying an existing franchise or a non-franchise business. One is equity potential. Franchise businesses usually command a premium over non-franchise businesess because of the branding and market dominance of franchises. The second factor is support. A franchise business with the systems and support will have a competitive advantage in the market place over non-franchise businesses.

How does the due diligence compare, franchise verses non-franchise business? The due diligence the buyer performs to make a decision to buy an existing franchise business is more comprehensive than a non-franchise business. The buyer can contact other franchise owners in other markets to gauge the performance of the franchise under consideration verses the performance of other franchise owners in the system. It is important to understand, are you buying a franchise from an underperformer or a top gun and what is the potential for improvement. With a non-franchise business, you have nothing to compare and it may be difficult to determine the level of sophistication of the owner and the potential for the non-franchise business.

How do royalties paid to the franchisor factor into the equation? Theoretically, any royalties paid to the franchisor should be outweighed by the benefits received by the franchise system. For new and emerging franchises, an argument can be made that the benefits are minimal. In a mature franchise system, the benefits are obvious.

How does the franchise relationship impact the decision to buy a franchise verses a non-franchise business? The franchise relationship between the franchisor and franchisee is a very important consideration. You must trust the vision of the franchisor to navigate the system through turbulent business waters. When buying a franchise, you must have trust in the Ray Krocs' and Dave Thomas' of the world because their decisions impact the value of your business.

Do I have to give up my freedom and creativity if I buy and franchise verses a non-franchise business? This is one of the big misperceptions in franchising, that if you own a franchise then you are part of the chain gang that slugs along producing profits for the franchisor. Nothing could be further from the truth. Talk to any successful franchise owner to understand they are operating THEIR business that is part of a system. OK, maybe they need to suck it in a bit and comply with Big Brother, but it's THEIR business. Buying an existing business you expect the owner to show you the ropes. At some point in time, enough is enough, it's time for you to forge your own path with nobody looking over your shoulder.

At the end of the day, you pay a premium buying an existing franchise or non-franchise business when the business is well run and producing predictable cash flow. What this premium buys you is peace of mind. You have bought a business with a level of risk that makes you comfortable, you are investing in the business and your future as a business owner!

Would you ever let your phone ring in your customer call center and not pick it up? This is what happens on a daily basis inside social media tools. I see where people are praising companies or complaining about a recent experience and no one is responding back to those comments. Are your customers talking about you or your company right now? Don't let that phone go unanswered!

What kind of information should you be listening for? Everything from comments about competitors to keywords, event triggers, and positive or negative comments. But don't worry—you don't have to be perusing social media sites all day long in order to catch these things. Here are some tools you can use to monitor what is being said about you, your company, or your brand:

You can use google.com/alerts or socialmention.com for free. Be sure to set the search for your name, leader names, company name, event triggers, or company brands.

For larger brands, consider using a tool that you pay for, such as alterian.com or radian6.com. These are dashboards that come with great workflows and analytics. They show user sentiment, identify the influencers in a situation, and allow more keyword search capabilities.

Social media is a great tool for research and customer service. When using it for research, listen for new ways that your product is being used. For instance, a manufacturing company recently learned that their product was being used in a different way than it was originally designed. This opened a new business opportunity that the company had not recognized before, and it might not have occurred to them had they not been using social media.

You can also use social media to improve your customer service efforts. A friend of mine once stayed at a hotel in Cleveland and had a bad experience there, so she posted it on Twitter. Within two minutes, the hotel was following her in Twitter and sent her their customer service number. She couldn't believe it. She called the number and they were very apologetic about her experience. Then they offered her a free night's stay for the next time she visited the hotel. That hotel turned around a negative situation. They answered the phone.

Have you thought about using social media to listen for potential customer needs? Has your company identified event triggers that it would look for in social media?

Anyone can run a franchise business during good times. When you are making money, it's easy to overlook some of the deeper issues that are lying beneath the surface just waiting for an excuse to move to the top of your business's list of challenges and create havoc. Paying attention, during good times and bad times, to these eight proven concepts will help your franchise business weather today's storm and make sure the next one won't hit you so hard.

1. Reconnect to every single employee and and ask them what you can do for them. Find out what their concerns are. If as the owner of the franchise, you are feeling concern, your employees are feeling it even more deeply. Fearful employees are not productive employees.

2. Make sure that your key indicators that you are tracking are still valid in a down economy. If you have been tracking profits and profits are predictably down, think about indicators that you've ignored that could give you insight into the inner workings of your business, i.e. inventory turns, customer feedback, follow up with leads, etc.

3. Identify what is keeping your operation from being as flexible as it once was. Today you have to be able to respond to your customers needs even more quickly and efficiently. If that isn't happening, fix it.

4. Find hidden pockets where profit is hiding. Examine every aspect of your franchise business with new eyes – to find those new eyes, tap into the intelligence that resides in your employees and your customers and find out what they see.

5. Look inward. Examine your own leadership skills. Now isn't the time to gloss over your weaknesses. Now is the time to reach deep inside and ask what other skills you can learn that will help your operations prosper.

6. Assess your team. Not every person is a fit. Release the ones that need to move on and open the door to find new talent, new perspective, new ideas and new blood.

7. What is your internal communication plan? If you don't have one you better believe that there are vast information voids in your operations and your employees are filling up those information voids with negative inputs. Start communicating your vision, your plan and be aggressive about telling your employees what they need to know.

8. Look outward. Who can help you get a better understanding of how to manage your challenges? There are experts who can bring clarity, who can help you look ahead because they have been in your shoes. Don't be afraid to ask for help.

It's my belief that the current economic downturn, while impacting anyone running a franchise business, will be fueled by determination, the ability to persevere and each Franchisee's commitment to asking the difficult questions, connecting to their employees and examing their own strengths and weakneeses. By focusing on the right things at the right time, franchise owners that have built their success on strong principles, customer-centered products and services and a belief in the people they employ will come out stronger than ever.