How to Identify the Best Referral Partners for Your Agency: A Guide to Maximising Partnership Opportunities

“Who makes the best referrer?” To help you get the best answer here, I like to think of where your service offering sits within the hierarchy of an in-house business (ie a brand or a non-agency) this way it can give you a strategic approach to sourcing partners and having higher value conversations.

To get started with this, visualise where your service sits within the hierarchy of your clients business. 

I would then double and treble the size of your client – do you still sit in the same position or have you shifted? These are important questions to ask and consider so you can position your service offering across the full life cycle of your clients growth. It will also help you to understand if your target persona shifts as your client grows.

Below is an example of what this could look like:

Top-Top-down referrals

The best sources for lead referrals are other agencies or consultants positioned above your service offering in the hierarchy.

For example, with NOVOS, a CMO consultant, fractional CMO, or head of eCommerce role would be ideal as SEO sits under the marketing department.

These consultants or agencies can provide powerful lead referrals because part of their role often involves revamping entire departments. As a result, they seek third-party opinions and expertise. When these consultants are brought in, businesses generally follow their recommendations, as not doing so would defeat the purpose of investing in them.

Another advantage of these roles is that they often report directly to the CEO in small to medium-sized enterprises (SMEs).

In recent years, the popularity of fractional C-level roles has increased. These roles are similar to contractor positions, where individuals are brought in to turn around underperforming departments or improve current operations. Typically, these individuals work with 3-4 clients at a time and stay for 6-12 months before moving on. For agencies, these roles present an excellent source of leads and introductions.

The top-down approach could include broader agencies too; they may have a big client requiring additional resources that their in-house team can not provide. However, be careful with this approach if you position your agency as value-led and a ‘thinker’ for your clients. This set-up won’t get the best out of your business as the broader agency will always want to be the middle-person or be heavily involved in defining the strategy and just want you to fill a resource gap. I talk more about this and the different positioning options for agencies in my course.

Horizontal referrals

These service providers are ranked second on the list in terms of referral lead quality. They perform well, but not as well as those mentioned above. They are part of the same team as you if you work in-house or for a brand.

For instance, NOVOS provides SEO services and would be in the marketing team along with agencies that offer services like Adwords, Paid Social, Affiliates, etc. Typically, these agencies send us one lead per year. If you have multiple referral agreements in place, you can potentially receive a handful of leads each year or even more.

However, these referrals are the ones that work best as actual partnerships because you operate at the same level and can complement each other well, as opposed to the top-down approach, which is often one-way and transactional. These referrals or partnerships are great for content collaborations.

Within this bucket you can also include cross department leads at the same level.

Bottom-up referrals

In my experience, I have found that these roles are not particularly fruitful. In the SEO world, these roles include copywriters, freelance SEO specialists, designers, and even web developers. Since they sometimes report to the SEO team, either directly or indirectly, I have noticed that the leads they bring in are often of lower quality or have lower budgets when taking a bottom-up approach.

Client referrals

Finally, one route agency owners often overlook is utilising their clients. Clients can become advocates for your agency and promote your services within their network. In my experience with different companies, I have successfully established referral agreements with certain clients. This creates a robust scenario where satisfied clients advocate for your services to potential leads or their network. Once you have a happy client who has benefited from your services, once they’ve provided a case study, offer them a referral kickback if they can refer you to their network. I have never had a client turn down this option in the past.

Understanding the hierarchy of your clients’ business is crucial for effective referrals. Top-down referrals from consultants or agencies positioned above your service offering can be powerful, while horizontal referrals from agencies or service providers within the same team can also be beneficial. Bottom-up referrals from roles like copywriters or freelance specialists may not yield high-quality leads. Additionally, leveraging client referrals can be a valuable strategy. By considering these referral sources and positioning your service strategically, you can maximise lead generation.

If you would like to learn more about sourcing, nurturing, and elevating your agency partnerships, please refer to my course available here https://theagnc.co.uk/c/agency-architect-course