When it comes to generating referrals for your MSP business, there’s a common misconception that offering a great reward is the key to success. Sure, everyone likes a nice bonus or incentive, but the reality is that referrals often stem more from the relationship you have with your clients than from any gift card or monetary reward you might offer. Let’s dig into the real secrets of getting those valuable referrals and how to ensure they keep coming.
The Real Driver Of Referrals: Relationships Over Rewards
Most business owners think, “If I just offer a big enough incentive, the referrals will flood in.” But here’s the truth: people refer you to others because they trust you, value the relationship, and feel good about the work you do for them—not because of the reward you offer.
Think about your own experiences. When you have a great relationship with a service provider, like a skilled dermatologist or a brilliant business consultant, you’re naturally inclined to refer them to others. You don’t need a push or a special incentive; you want to help them succeed because you know they’re great at what they do. For example, I have a fantastic dermatologist, and if she asked me for referrals, I wouldn’t hesitate to give her a few names. Why? Because I like her and trust her. It’s that simple.
The same applies to business referrals. If you’ve built a strong relationship with your clients, they’ll be more than happy to refer you to others in their network—especially if they know that you genuinely care about their success and the success of those they refer.
Don’t Be Afraid To Ask
It’s one thing to be referable, but you’ve also got to take that next step and actually ask for referrals. A lot of business owners shy away from this, thinking it’s pushy or uncomfortable. But here’s the reality: if you don’t ask, you’re missing out on a huge opportunity. And most of the time, your clients will appreciate you for thinking of them as someone who can help connect others to valuable services.
Consider this: when you’ve just finished a successful project or resolved an issue for a client, that’s the perfect time to ask for a referral. It could be as simple as saying, “Hey, we really appreciate your business, and we’d love it if you could refer us to anyone else who might need our services.”
You can also integrate this ask into other interactions:
- Quarterly Business Reviews (QBRs): A great time to discuss how things are going and ask if they know anyone else who might benefit from your services.
- Service Calls: When wrapping up a support call, mention that you appreciate referrals.
- Newsletters: A small reminder in your newsletter can go a long way in keeping referrals top of mind for your clients.
The key is consistency. Make asking for referrals a natural part of your client interactions, and you’ll be surprised at how many new leads come your way.
Recognizing Referrals: It’s Not About The Amount
Now, I’m not saying you should ignore rewards altogether. Recognizing and showing appreciation for referrals is crucial, but it doesn’t have to be over-the-top. Even a small gesture can go a long way in making a client feel valued.
For example, you could offer $100 for each referral that becomes a client. Or, take a page from the Angie’s List playbook: they used to send a fun surprise like a big bag of M&Ms to clients who referred others. It’s a small token, but it’s memorable and appreciated because it wasn’t expected.
The idea is to find something that acknowledges the referral without making it the sole reason someone would send business your way. It’s about showing that you appreciate their effort in thinking of you, not necessarily trying to buy their recommendation.
Follow-Up: Keep Referrals Top Of Mind
Once you’ve asked for a referral, don’t let it be a one-time thing. Build reminders into your regular communication with clients. After each project or service interaction, remind them that you’re always open to referrals. You might even include a note in your email signatures or send a follow-up message thanking them for their business and mentioning that you’d love to help anyone else they know.
It’s also worth considering a structured referral program where you lay out the benefits for both the referrer and the new client. But remember, the heart of your strategy should always be maintaining a strong relationship with your existing clients. It’s the quality of that relationship that will ultimately drive the most valuable referrals.
Building A Referral-Generating Culture
In the end, generating referrals comes down to being a business that people want to talk about. It’s not just about a good incentive or fancy marketing tricks. It’s about building a solid reputation, delivering excellent service, and being the kind of MSP that clients feel proud to recommend to others.
By focusing on relationship-building and simply asking for referrals, you can create a steady stream of word-of-mouth business that’s far more valuable than anything a one-time incentive can buy. And don’t forget to show appreciation when those referrals come in—whether it’s with a heartfelt thank-you note, a small gift, or a bit of recognition in your newsletter.
