by Madhur Duggar, Excendio Advisors
In the world of professional services and advisory work, your next best client rarely comes from a cold call. It comes from someone who knows, likes, and trusts you — or better yet, someone who’s already worked with you and is willing to vouch for your results. That’s the power of a well-designed referral program.
But while incentives and systems matter, what truly drives referrals is the strength of relationships — especially with the centers of influence (COIs) in your community. In this article, we’ll break down how to set up a powerful referral program and why building a network of trust with COIs is the most sustainable growth lever you can pull. Any questions, email madhur@excendio.com.
✅ Why Referral Programs Work
Referral programs channel the most valuable form of marketing: word-of-mouth trust. Whether you’re selling IT services, financial advice, or M&A support, the referred lead comes in pre-sold on your credibility. They close faster, churn less, and spend more — because someone they trust already vouched for you.
Studies show that:
- Referred clients are 4x more likely to convert.
- They have a 16% higher lifetime value.
- And they’re more likely to refer others in turn — if you give them a reason.
🛠️ How to Build a High-Performing Referral Program
1. Define the Ideal Referrer and Referral
Start by asking:
- Who already knows our value?
- Who is in a position to recommend us?
This could include past clients, professional peers, industry vendors, or COIs like attorneys and accountants.
2. Choose the Right Incentive
Match your incentive structure to your brand and industry norms. Options include:
- Gift cards or cash bonuses
- Discounts on services
- Donations to a charity of their choice
- Exclusive content, tools, or early access
For professional services, often the best “incentive” is reciprocity or reputation — not cash. A hand-written thank you, exclusive event invite, or spotlight in your newsletter can go a long way.
3. Make It Easy to Refer
Reduce friction by:
- Creating a referral landing page
- Offering a simple email script or form
- Letting people refer by just dropping a name or introduction
Clarity and simplicity drive action. If people are unsure who qualifies or how to refer, they won’t.
4. Follow Up and Close the Loop
Always thank the referrer — regardless of whether the deal closes. Let them know how it went and show appreciation. This keeps the goodwill (and referrals) flowing.
5. Track and Optimize
Monitor:
- Number of referrals
- Conversion rates
- Source of referrals (client vs. COI vs. vendor)
Over time, invest more in what’s working — whether it’s a specific incentive, audience, or outreach channel.
🤝 The Secret Weapon: Centers of Influence (COIs)
While individual clients may occasionally refer others, your greatest referral engines are Centers of Influence — the trusted professionals who advise your ideal clients every day.
Who are COIs?
- CPAs and financial advisors
- Attorneys (corporate, estate, M&A)
- Bankers and lenders
- Fractional CFOs and consultants
- Business coaches, peer group leaders, and industry vendors
These professionals often know when a business owner is in pain — before the owner even starts looking for help. If they trust you, they’ll point those clients your way.
🧠 How to Build Long-Term Referral Relationships with COIs
- Give Before You Ask
Refer opportunities their way, promote them in your network, or offer content or insights they can share with their clients. - Educate Them on Your Ideal Client
Help them recognize referral opportunities. Explain who you work with, what problems you solve, and how to make a warm intro. - Stay Top of Mind
Regular check-ins, newsletters, or inviting them to roundtables/podcasts can keep the relationship warm without constant asks. - Create Shared Wins
Consider formalizing the relationship through co-marketing, joint events, or collaborative content. If their clients benefit from your services, they benefit too.
🏁 Final Thought: Trust is the True Incentive
The best referral programs are not driven by discounts or gimmicks — they’re powered by trust, clarity, and consistency. And no one accelerates that faster than the COIs already serving your audience.
If you’re in professional services, building a thoughtful referral program is great. But nurturing a network of influential advocates? That’s what creates a self-sustaining engine for growth.
If you find this note useful and would like to learn more about what other things Best In Class MSPs are doing to grow their business and build out their operational maturity, click here.
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Feel free to contact Madhur Duggar, Senior Advisor at Excendio Advisors to learn more about how I am helping IT Service firms grow and exit.
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