Why Referral Groups Actually Work For MSPs (And How to Turn Them Into MRR Machines)
Most MSPs say referral groups like BNI or GoldStar are a "waste of time".
They complain about all the insurance, finance and B2C people who typically comprise these groups.
My question to them would be - why in the hell are you spending money in a paid referral group consisting of B2C salespeople?
Because I agree - in that case this would be a waste of time. But I'm here to tell you that these groups are not only a great prospecting channel, they produced some of my biggest MRR deals I ever closed.
And the biggest MRR deal came from a chimney sweeping company.
In this blog I will break down why these groups are so powerful and what you have to do in order to turn them into one of your biggest assets.
Why You Fail in Referral Groups
Our industry is a trust-based, relationship-building sales process. It’s the exact same with referral partners.
With MSPs practically being a dime a dozen these days, why would someone care enough to remember you — let alone refer an associate they know who’s struggling with their IT?
There are numerous reasons why MSPs fail in referral groups, and these generally add up to:
Being in the wrong group with the wrong people
Having the wrong mindset and expectations
Having transactional interactions instead of building real, long-term relationships
Not demonstrating value to your peers
Each of these points on its own can cause failure, but when more than one shows up, you’re pretty much guaranteed it.
Being in the Wrong Group with the Wrong People
This one is so avoidable. You just have to search for a paid referral group in your area that includes one or more of the following types of personas:
Telecommunications
Commercial security
ISP
Commercial mover
I call these personas my power partners. When you’re researching which group to join, look for a power partner you can easily refer deals to — and who can easily refer deals to you. Another great fit is a copier or product-based company that doesn’t offer managed services.
Another point here: you want hustlers. You don’t want people who are comfortable with cushy salaries and aren’t going to go out and get you deals.
Having the Wrong Mindset and Expectations
Do not expect any leads from these groups for at least the first month or two. Go into it with the mindset of I’m going to get tons of leads for everyone else.
You need to become a connector — a “bringer-together” of people — and open up your network for the benefit of your group. This will, in turn, cause others to get leads for you.
Having Transactional Interactions Instead of Building Real, Long-Term Relationships
The previous point plays a major role here. A referral group is not a short-term play — it’s a long-term growth engine that will continue to feed you month after month.
To accomplish this, you must drop your own agenda and simply build quality relationships with your power partners. I used to go canvassing with them, attend other networking groups with them, grab lunch, etc. It has to be genuine — not an “I’m your friend just to get leads” thing.
When you build real bonds, they’ll produce pure gold.
Not Demonstrating Value to Your Peers
This one is really important. Even with long-term relationships, why should they refer leads to you and not their other IT friend they’ve known for years?
Any time I did a presentation for the group, I always tried to prepare something that would benefit everyone in the room. Think consultative — talk about a real problem everyone faces, and follow it up with why your MSP is best suited to handle it.
And of course, do not talk tech jargon in these groups. Talk about real-world IT problems they face daily, and make it crystal clear that you’re the company that can handle them.
Talk about your wins whenever they happen — new clients, helping a customer avoid a massive cyber incident, getting a server back up in hours, etc.
Your Referral Group Will Become One of Your Biggest Assets
I promise you that if you do these points, you will be the one bragging about your referral group instead of joining the ranks of MSPs who complain about them.
I founded Resonant Impact Systems to help MSPs put in place a better sales and marketing org, so they can win at what they do best.
If you want to hear me talk about this point LIVE, join me on Youtube this coming Wednesday November 12th at 10 AM eastern time.
In this live session, I’m breaking down:
✅ Why most MSPs completely fail at referral groups
✅ How to position yourself as the go-to IT expert in any room
✅ The simple weekly actions that turn coffee meetings into real MRR
✅ How to spot the right groups - and avoid time-wasters
And of course, you can always book a meeting with me if you'd like to go more in depth in a one-on-one session with me. No strings attached, just help.
