How to Get Consulting Clients with Referrals

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Hi there!

A current McKinsey consultant and I exchanged DM’s earlier this week. He’s interested in solo consulting, so he reached out for some advice.

With his background, he’s (understandably!) not worried about doing the actual consulting work.

His biggest roadblock is getting clients.

That’s also understandable! It’s the number one priority for every independent consultant. It doesn’t matter if you worked at McKinsey or as a school librarian (like my mom did!)

You need to figure out how to get clients.

One relatively under-the-radar strategy is referrals from other solo consultants.

So, let’s talk referrals in independent consulting!

What do referrals look like in consulting?

This is up for negotiation between the referee and the referee.

However, the standard structure is:

• The referer sends the referee a client

• The referee shares 25% of the first project cost with the referer

• If a second project emerges, the referer keeps 100% of it

This is a big win for the referee! They get a project they otherwise wouldn’t have received.

Or said differently, 75% of a $100K project is a lot better than 100% of no project!

Why would the referrer do this?

It could appear like this isn’t a good deal for the referrer

However, this is a win for them too.

First, it reflects well on you to the client. The client now views you as a well-connected, influential consultant. Next time they need any consultant, they’ll come to you.

That’s a very advantageous position to be in with the client

Second, it reflects well on you to the consultant. The consultant is likely pretty happy with you! This can manifest into referrals from them back to you

Third, the alternative isn’t great.

Let’s say a client of yours reaches out to you for work. You are already busy and cannot do it yourself.

You could tell them that. You’ve now disappointed the client, and your involvement is zero.

Or, you could make the referral and build goodwill with another consultant and the client (see #1 and#2).

Fourth: money

You could theoretically make really good money sending referrals.

I personally believe the benefits of 1-3 are stronger reasons. I don’t charge when I send out referrals.

(BTW: I now get a huge flow of projects due to Twitter and this newsletter. If you would like me to refer you work, you can sign up HERE. Again..no charge!)

How do you get people to refer you to consulting clients?

There are a couple of strategies here.

First, join a large consulting project where there are 5+ other independents. You’ll naturally meet them and see what they are good at. Then, you can refer work back and forth.

This is where most of my referrals came from, pre-Twitter blowing up! I would highly recommend you focus your energy here. Other consultants aren’t competition on these projects, they’re a future sales channel.

Second, network with other independents.

This is less fun, because people don’t love networking (I know I don’t.)

But, it’s worth it to know other independents. Find events, Linkedin communities, Twitter communities, etc.

Third: Again, happy to refer work out for free if a logical project project fit for you. That link is HERE.

How can I help?

If you reply to this email, it will come directly to me & I’ll respond as quickly as possible

To head off a very common question: I’m sorry but I don’t have any quickstart guides, courses, communities, or other paid resources!

What would be most helpful to read about next week?

Let me know what would be most helpful for you :)