Upcoming FCC Regulations to Transform Franchise Lead Generation Practices
New FCC rules will require one-to-one consent for lead generation, impacting lead volumes and quality. Texting regulations also face stricter opt-out rules.
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Navigating FCCs New Lead Gen Rules - ClientTether Webinar
Added on 10/01/2024
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Speaker 1: If you haven't heard about these, these are important, and it's going to make a massive impact on the way Frandev is being done because of the lead amalgamators, the lead providers that are doing things that the FCC is now going to regulate against. So the one-to-one consent, this is a new, they actually call it the lead gen loophole that they're trying to close, which is essentially the way that the majority of leads are generated in this industry through portals, where somebody shows up to a website, a consumer, and they say, oh, I'm interested in franchising, and I like this, let's say, you know, Painter 1 franchise concept. They fill out a lead form for Painter 1, and little do they know that their information is being sold to five other brokers or franchisors that might be related to Painter 1. So this is essentially their effort to refute that, and you now have to have a one-to-one express permission that they opt in per lead buyer for those leads. It's got to be clear and conspicuous, and it's per brand. So if I'm a consumer now, I have to say, I want to talk to Painter 1, oh, I also want to talk to Color Whip, oh, I also want to talk to Line Painting. They have, the consumer has to do that. So if any lead generators are on the call, God bless you. This is going to take a lot of effort to recode everything, but what'll happen, and I've talked to some of the lead amalgamators that do this in the home service industry. Guys like Angie Thumbtack, they're redefining their entire consumer experience before January 1, but the impact that they anticipate is about a 30 to 40% reduction in leads. Some of them is up to 50% reduction in lead volumes, but the lead quality will be significantly higher. I'm telling you this now because you need to be, as you're looking at brand budgeting for the next year, if you're reliant upon people who are doing portal leads, or you're depending upon portal leads for your franchise development, your volumes could cut in half, and that also means then the cost is going to jump through the roof, but you might get to the same level of conversion and deals done. I can't make any guarantees there, guys, but I'm just saying, be aware that those are the dynamic shifting in the industry. Texting. So you guys know there's a do not call registry, right, the DNR. That group, the FCC is saying, hey, we want people, if they, you can't text somebody if they're on the DN, the do not call registry, unless they give you express opt-in, right? So I don't think that one's going to be as big of a deal as some people are making it out to be, because frankly, you shouldn't be texting anyone anyway, unless you have an opt-in. So I think you're going to be okay, but the second part of this is the tricky part. If somebody says, hey, I want to, if they say reply stop to a text message, the FCC is trying to implement a rule that would then require us to not call them again. So if they opt out of texting, we can't call them anymore. And if they opt out of calling while we're texting them, they're trying to say, mate, you should probably shouldn't text them anymore too. There's a little bit of a TBD around this, like, well, TBD, we'll see how this gets implemented in some of the new rulings that are coming out in some of the suits and the dialogue. But I just want you to be aware that that's something that may very well be required in January.

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