This has been on my mind ever since ScaleCon.
I was attending a session when I overheard one of the speakers talking about their MSP’s new referral program. It was designed to ramp up “word of mouth” – and the top prize? A Tesla.
That’s right. Refer a new client and you might drive away in a brand-new electric car. It got a few laughs. And sure, it got people’s attention. But it also left me wondering if we’ve lost the plot a little when it comes to referrals.
In my own experience, and after working with dozens of MSPs, I’ve noticed a pattern: when it comes to getting more leads, many MSPs overcomplicate the simple and oversimplify the strategic. Referral programs are a perfect example of this.
Let’s be honest – most of us feel a bit icky about paying our clients cash to bring us business. It’s not that we don’t value referrals. In fact, many MSPs (maybe even most) are built entirely on word of mouth. But once we start formalizing that into a “program,” the authenticity often evaporates.
I’ve spent months thinking about this. I picked up Dan Kennedy’s No B.S. Guide to Maximum Referrals and dug into the psychology behind referrals. I revisited what I’d heard from other MSP owners, including one who donates the first month’s MRR to the person who referred the client – a strategy that’s grounded in the economics of client lifetime value.
But even that didn’t sit quite right with me.
Then I found a model that clicked – not just for me, but for the clients I work with.
The Charity Referral Model: A Win-Win-Win-Win
Here’s the concept: Instead of giving a financial reward directly to the person who refers a new client, donate the equivalent amount to a local charity in their name.
It sounds simple, but it’s surprisingly powerful. In fact, it creates four winners:
- The charity benefits from the donation and increased awareness.
- The referrer feels great – they’re doing good, getting public recognition, and they’re now tied to a positive story.
- The new client starts the relationship with you on the right foot, knowing that just by joining your service, they’re part of something meaningful.
- You get a new client, more goodwill, and a PR story that doesn’t feel salesy.
This model avoids the ethical weirdness of monetary kickbacks and instead builds deeper alignment with your brand, your values, and your local community.
How to Set It Up (What I’m Doing)
There’s no need to over-engineer this. Here’s how I’m rolling it out with MSP clients:
1. Partner With a Local Charity
Pick a cause that your clients will care about. Children’s education, cancer support, animal rescue – something real and local. Let the charity know you’d like to donate a set amount (e.g., first month’s MRR from any referred client) in the name of whoever made the referral.
Send out a local press release about the partnership – it’s a great excuse to get local media coverage. That alone can result in some inbound referrals.
Even better, work with the charity to publish a joint blog post or social media campaign. They’ll often give you a valuable backlink (great for SEO), and the story practically writes itself.
2. Build a Landing Page for the Program
You need a home for the initiative – a single place people can go to read about the partnership, learn how to refer someone, and fill out a quick form. Keep it human, not salesy.
I like to frame it like this in newsletters and email signatures:
“Learn how we’re helping kids in [City] through our IT services.”
That line alone sparks curiosity and makes the reader want to click. Once on the page, they’ll see it’s a referral initiative – but instead of receiving cash, their referral creates impact.
3. Promote Subtly and Consistently
Don’t rely on a one-time announcement. Mention the charity referral program regularly:
- In your quarterly newsletters
- At the bottom of invoices
- In client review meetings
- When a client says “thank you” or compliments your team
This soft-touch repetition is what keeps it top of mind.
Why This Works (And Why Traditional Programs Often Don’t)
During the Tech Tribe discussion where I originally shared this, several MSPs chimed in with similar feelings about traditional referral programs. One said, “It always felt icky offering money for referrals.” Another shared how their own early attempts to formalize a referral scheme – with cash rewards – fell flat and eventually got pulled.
But when we reframe referrals as shared storytelling – as something that makes our clients feel like they’re part of a mission – we remove the discomfort. There’s no pressure. No expectation. Just opportunity.
And it works because it aligns with human nature.
People love to be part of something bigger than themselves. They want to help causes they care about. And they like introducing people they trust to services they believe in. The charity model ticks all of those boxes – without triggering the “salesperson” alarm in their heads.
What If You Still Want to Offer Incentives?
Not everyone is motivated by altruism. And that’s okay. In the same forum thread, a few MSPs mentioned using creative non-cash rewards – like LEGO sets or Airbnb gift cards – to thank referrers. Others mentioned rewarding staff internally, which feels more natural because employees are already part of the business.
If you do want to give clients something physical, make it thoughtful, not transactional. Something personal goes further than something expensive. Think: coffee from a local roaster, a handwritten thank you, or a donation to a cause you know they care about.
And if your referral program still involves money – even indirectly – be transparent about it, and make sure it fits with your brand voice and company culture.
The Elephant in the Room: “Why Would I Refer You?”
One of the most honest comments in the thread came from a client who said, “Why would I refer you? The more clients you get, the longer I have to wait for help.”
It’s a valid concern – and one every MSP should take seriously.
The way I address this with clients is by being upfront:
“Our growth enables us to improve service, not dilute it. New clients help fund new hires, new tooling, and new capabilities that benefit everyone.”
And then – prove it. If you’re growing, show that service is improving. Add response time guarantees. Share stories about new hires. Be transparent in your account management.
Final Thoughts
Referrals are too valuable to leave to chance – but also too sensitive to treat like a sales tactic.
If you’re looking to grow your MSP sustainably and ethically, consider a charity-first approach. It removes the awkwardness, builds goodwill, and generates leads in a way that feels good for everyone involved.
You don’t need to give away a Tesla.
You just need to make people feel something meaningful when they send a new client your way.