Let me be clear: I’m not anti-referral. In fact, most MSPs should be generating referrals if they’re doing good work and taking care of their clients. A solid referral from a happy client can be one of the best leads you’ll ever get — they close faster, they trust you more and they’re often a good personality fit because they came from someone who already knows and likes you.
But here’s where MSPs get into trouble: they confuse referrals with a real marketing strategy.
And when I say “real marketing,” I’m talking about the kind of consistent, proactive lead generation that you can track, repeat and improve — not the occasional “Hey, I gave your name to someone” that may or may not turn into a sales opportunity.
Relying only on referrals is like running your business on word of mouth and wishful thinking. And that’s fine — until it’s not.
Referrals Feel Like Enough — Until They Aren’t
Let’s talk about how this actually plays out.
You start your business, or you’re still small, and you’re doing great work. Clients are happy. A few of them tell their friends. Maybe a local vendor throws you a bone. You start picking up clients here and there without doing any real marketing.
It feels great. Like you’ve cracked the code.
You think, “Why spend money or time on marketing when we’re already getting leads?”
Here’s why: because referrals are reactive — not proactive. You don’t control the flow. You can’t make them happen when you need them most. You can’t scale up or down on command. And worst of all, you’re not in charge of the message that’s being shared.
You’re relying on other people to bring you business. That’s not a strategy. That’s just getting lucky.
You Can’t Schedule Referrals
Let’s say you lose a big client unexpectedly, or your pipeline slows down right before the end of the quarter. What’s your play? If you’ve been relying on referrals and word of mouth, you don’t have one. You’re stuck.
No campaigns running.
No leads in your funnel.
No list to promote to.
Just a whole lot of quiet and a calendar that isn’t filling itself.
The MSPs I see grow year after year — the ones who build real companies, not just a job for themselves — have a marketing engine that works whether or not anyone’s talking about them. When one source slows down, the others are still feeding the pipeline.
They don’t scramble when the phone isn’t ringing — because they’ve already built the system that keeps it ringing.
Referrals Are Not Repeatable — Marketing Is
You might get 3 referrals in one month and zero for the next six. That’s not a system. That’s a fluke.
The whole point of having a marketing system is so you can build repeatable, predictable growth. You know how many leads you’re generating. You know what offers are working. You know what’s converting. You’re not guessing.
Real marketing gives you control. Referrals keep you waiting.
Don’t Mistake Word Of Mouth For Momentum
One of the most dangerous things that happens when MSPs grow by referral only is that they mistake activity for strategy.
They think, “We’re growing, so whatever we’re doing must be working.”
But here’s what I always ask: Is it working because of something you’re doing intentionally? Or is it happening by accident?
Because if it’s happening by accident, it can stop just as easily. One change in the market. One bad quarter. One referral source drying up — and suddenly that “momentum” vanishes.
If you want real momentum, it needs to be backed by a consistent marketing system that works even when no one’s talking about you.
Marketing Doesn’t Replace Referrals — It Multiplies Them
Now to be clear, I’m not saying referrals aren’t valuable. You should absolutely build systems to generate them more consistently — and we teach that. There are ways to engineer referrals from your clients, vendors and partners so you’re not just waiting and hoping.
But more importantly, when you actually start marketing, something interesting happens: you get more referrals.
Why? Because you’re visible. You’re top of mind. Your clients are seeing your content. They’re getting your emails. They’re watching you host webinars and send out useful information. That presence reminds them to talk about you — and gives them something specific to mention when they do.
In other words, marketing fuels referrals — not the other way around.
Multiple Lead Sources = Real Business Stability
Think about it like this: referrals are one fishing line in the water.
You want five. Maybe ten.
If one line stops getting bites, you’ve got others still producing. That’s how smart MSPs build real stability — by creating multiple streams of leads that don’t all depend on one client remembering to mention your name at lunch.
Here are just a few channels our members use to consistently generate leads:
- Outbound prospecting (cold email, direct mail, calling)
- Email campaigns to clients and prospects
- Website conversion strategies tied to real offers
- Educational webinars and events
- Re-engagement campaigns for old leads
- LinkedIn and social proof marketing
- Cross-sells and upsells to existing clients
And yes — referrals too. But those are the bonus, not the backbone.
Final Thought
If referrals are working for you, great. Keep them coming. But don’t confuse referrals with a strategy — and don’t make the mistake of assuming they’ll always be there.
You can’t build a real business on luck, word of mouth, and good intentions. You need a pipeline. A plan. A consistent system that produces leads whether you’re the topic of conversation or not.
Because at the end of the day, hope is not a marketing strategy — and referrals alone won’t get you where you want to go.
