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Turning Your MSP Competitors Into Lead Sources 

When I was an MSP, some of our best partners were other Managed IT providers. These relationships took various forms and arose from unique situations but almost always proved valuable. One of my biggest regrets looking back is not doubling down and attempting to engineer these partnerships at scale. Since we were pretty active in our lead generation efforts, we had a lot of closed-lost opportunities that likely could have been distributed to a partner in exchange for some form of future compensation. This helps cover the lead cost, and expands the 

This opportunity is partly enabled by the rich community experience that the IT industry has to offer. It is also compounded by the fact that MSPs are niching down, verticalizing, and narrowing their focus as a means of survival and growth. That specialization creates a byproduct of partnership opportunities as it attracts leads and referrals that no longer fit their ideal client profile (or ICP). You may be thinking, ‘But who in their right mind would give away a customer?’ As MSPs mature, they often realize that taking on a low-fit opportunity can do more harm than good. Sometimes, it’s more beneficial to pass the lead to a trusted partner in exchange for a reciprocal benefit or a commission-based fee. 

As I described with my experience, these relationships often begin as situational. One MSP has an opportunity they either can’t or prefer not to pursue, and rather than refuse it outright, they decide to seek a partner. These are almost always “give-to-get” scenarios, meaning that MSP with the opportunity in-hand is likely the one initiating it. This doesn’t have to be the case however. Recipients could reach out to prospective MSP partners with a specific scenario and partnership in mind. That is what I hope to explore in this article.

MSP-to-MSP Referral Scenarios 

If you’d like to proactively seek MSP-to-MSP referrals, it helps to first understand the common scenarios where this occurs. Here are a few situations that I can think of where a cooperative approach may be mutually beneficial: 

Service Area Conflicts

One of the most common referral scenarios that I’ve personally experienced is with conflicting service areas. For example, let’s say I was a locally focused MSP in the Philadelphia, PA metro area. I might often receive leads for companies in the Harrisburg, PA metro area, about two hours away. If I determined this was outside my jurisdiction, I might choose to pass these opportunities to a partner willing to reciprocate or cooperate to provide the service. Given how geographic restrictions are being lifted by cloud and distributed workforces, this may become less common in the future, but as of now, the opportunity still exists in some markets.  

Geographic Expansion

A similar situation can arise when an MSP has a customer that is expanding into a service area that is out of reach. Using a similar example, let’s say my locally focused MSP in Philly had a customer that opened a satellite office in Pittsburgh, PA, about a five-hour drive away. Rather than make the trip whenever the company needs onsite support, I decide to partner with a local MSP to provide boots-on-the-ground support when needed. They then become my de facto Pittsburgh partner which I defer to any time the situation arises and vice versa. 

Company Size / Budget 

As an MSP grows and matures, their target audience often grows with them. This means that some larger MSPs become far less interested in supporting small businesses of less than 10-20 endpoints, especially those who are focused on the enterprise market. If you are an MSP that is just starting out and are willing to take on these customers, then I would seek out these partnerships. Find a large or enterprise MSP, talk to their executive and business development teams, and offer something in exchange for the leads they don’t want. If you can prove that you are not a threat and that they have some upside in the relationship then they may just take you up on it. 

Technical Specialization

Every MSP seems to have their own unique blend of technical expertise. On some occasions this is intentional, and others it is simply the sum of the collective experience of founders and team members. This technical specialization is a fit for some customers but not for others, depending on their needs. This creates opportunities for partnerships or referrals when appropriate. For example, a customer may have a need for custom software integrations with their ERP that extends beyond the capabilities of a general MSP with basic cloud experience. That MSP can choose to work with a skilled competitor either directly or by referral. If successful, this can be the start of an established partnership. 

vCISO / Compliance 

A growing trend in the IT industry is the cooperation between MSPs, MSSPs, and IT Providers around cybersecurity. Those building out comprehensive vCISO, SOC-as-a-service, penetration testing, and compliance (e.g., HIPAA, GDPR, CMMC) offerings are not only attracting interest from highly regulated end-customers but also from other MSPs serving these customers. In many cases it makes more sense for these general MSPs to find a trusted partner rather than to take on risk and climb the steep learning curve that cybersecurity and compliance presents. 

Vertical Specialization

When it comes to deep vertical specialization, it is difficult for MSPs to achieve this in multiple industries simultaneously, which creates opportunities for referrals and partnerships. In some cases, there are also MSPs that simply choose not to work in certain verticals. For example, I once talked to an MSP that preferred not to take on any new contracts in the healthcare industry. They were so committed to this that they passed any leads they received to a competitor. In exchange, they received leads in education, which was their primary vertical of focus. 

Opportunity Scale / Resources 

Sometimes a project or opportunity is simply too large for a single MSP to take on. I can recall a scenario that we encountered where we had the opportunity to bid on a network infrastructure / cabling project in a massive building. To successfully complete the project, we had to bring together another local MSP and two telecom contractors. One of those contractors became a great partner of ours who we would use for other structured cabling projects. They also referred us managed services clients, since this was not their core area of expertise. 

Partnership Terms & Agreements

Structuring these agreements can largely be dependent on the needs of the end customer, as well as a compromise that ensures value for both MSPs involved. They may also evolve over time once trust has been established and both parties are comfortable with the outcomes thus far. Here are a few examples of terms and agreements that may be common in cooperative relationships between MSPs:

Informal Verbal Agreements

Most MSP-to-MSP relationships begin as informal, verbal agreements (or handshake agreements as they are often called). In fact, if you are seeking out such relationships, it’s best to start here and use this as a launchpad to show what you can do. Trying to secure a formal agreement with restrictive terms will only introduce friction into the process before either party has had a chance to provide value. 

Reciprocal Referral Agreement 

As I previously mentioned, these partnerships are often give-to-get, and so in many cases it makes sense to clearly define how reciprocity should function. For example, you may be willing to give any Healthcare leads that you receive in exchange for any Education leads that they receive. The definition of these customers should be well defined and it should also be clear as to what happens if one party fails to deliver on their promise. In this case, you may agree that if one party does not reciprocate within 3 months time, then they should pay a finder’s fee to the referring partner. 

Revenue-Sharing & Commissions

In some cases, the referring is a one way street. This is often true of technical specialization and cybersecurity. In these scenarios, it may make more sense to implement a revenue sharing agreement, so the referring party has financial incentive to pass along these opportunities. In most cases, they cannot fulfill these services anyway; therefore, simply declining the opportunity results in lost revenue. These agreements are best suited for long-term partnerships that fill gaps in an MSP’s go-to-market strategy. 

Subcontractors & White-Labelling 

These scenarios may also involve a subcontractor or white-labeling agreement, where one MSP provides services under another MSP’s brand. In this case, the MSP pays for the services directly and then rebills those services to their end customer. This may also be true of project-specific services where an MSP is lending additional resources on an hourly basis.  These agreements are common, and can lead to valuable synergies between competitors. 

Exclusivity & Non-Competes

Depending on the depth of the partnership, it may make sense to build in some exclusivity or non-competes into the agreements. For example, in an out-of-service-area scenario, both parties may want to exclusively exchange leads within a defined geographic area, while simultaneously agreeing not to directly compete with the partner in that area. This makes more sense, the greater the distances are between the two regions, but can become difficult the closer they are together. 

Sourcing Referral Partners 

By now your wheels might be turning as you are thinking about all the different MSP referral partnerships that could work for your business. But where do you even find these partners to begin with? Here are a few of the most common places that you can make contact with other MSPs to initiate a referral partnership: 

Peer Groups / Events

If you are looking for a deeply integrated partner then peer groups and in-person networking events are a great starting point. Since these are often “safe spaces” for fellow MSP Owners and Executives, they will likely be more open to dialogue. The in-person aspect of the experience also helps you quickly gauge who they are and whether or not it’s someone that you want to do business with. Given that these events are often recurring on a weekly, monthly or annual basis, it also offers an opportunity to gradually build up the relationship over time. 

Forums / Communities

Whether you have a referral to offer or are looking to generate inbound opportunities, posting on r/msp, MSPGeek, or The Tech Tribe will likely spark some interest from peers and competitors. Just be sure that your value proposition is clear while also anonymizing any information that could lead to a lost opportunity. For example, you wouldn’t want to give away specific information regarding the customer or project until some agreement is formed. This would prevent silent observers from trying to take the opportunity for themselves and cut out the partnership angle completely. 

Online Directories

If you are looking for an MSP in a specific service area, or that services a certain industry vertical, directories such as Clutch.co can offer a lot of valuable information. These listings also contain reviews so that you can get a feel for how these potential MSP partners treat their customers. You wouldn’t want to refer to a company with poor service and at the same time, that company will be less likely to refer to you given their bad reputation. Ideally, you want to work with a strong provider that will make you look good for partnering with them.  

Local Networking Groups 

Another option to engage with local MSPs is to tap into networking groups such as BNI or Chamber of Commerce within the specific area you are looking to target. For example, if you are a member of BNI, you can attend meetings for other chapters. You simply have to reach out to the chapter ahead of time and let them know that you will be traveling to their city and that you’d like to attend. Most of these groups will be welcoming to visitors, especially if you make it clear that you aren’t looking to pitch them on your services, but rather you are looking for reciprocal networking opportunities. 

Vendors / Ancillary Partners

If you have strong relationships with your software vendors or ancillary service providers that also partner with MSPs, you can reach out to them to get recommendations on who you should be partnering with based on your objectives. They will likely know which MSPs are growing and have the ability to refer you new business, and which are stagnant and possibly shrinking. Since these relationships often originate or are nurtured at industry events, your vendors may have met these prospective partners in person and can provide insights into what it’s like to work with them.

Conclusion

Seeing competitors as collaborators rather than adversaries is a mindset shift that opens up countless opportunities. This isn’t just about gaining a few extra leads, but rather it’s about building a network where mutual trust and shared value create something greater than the sum of its parts. As you start identifying potential referral partners and crafting agreements that work for both sides, you’ll find that competition becomes a catalyst for growth, not a barrier. The real takeaway? Success in this industry isn’t about hoarding opportunities; it’s about knowing when to share them and trusting that the ecosystem will return the favor.