Partnerships, The New Referral: Unlocking Growth for Digital Agencies

Having worked with agency and technology business for his whole career, Guy saw that founders had 3 ways in which they could grow their business - hire full-time, use an intermediary or hire a traditional consultant. But is there more to it?

We hosted Guy Littlejohn at our Agency Partnerships Summit in May. If you missed his session, here’s your video recap and link to Guy’s full article.

Referrals have always been the backbone of growth for most agencies, providing an effective, low-cost method of acquiring leads and closing deals. But what if we told you there’s a modern alternative—a refined, scalable version of traditional referrals? Enter partnerships.

At Facets, we believe partnerships represent the next evolution in agency growth strategies. By building strong, strategic partnerships with other businesses that share your target audience, you can generate a consistent stream of high-quality leads while expanding your network. Over the past 18 months, we’ve seen partnerships compete with, and often outperform, direct customer sales for our clients.

This blog explores why partnerships are the future, how they differ from conventional referrals, and how you can harness their power to take your agency to the next level.

The Shift from Referrals to Partnerships

Referrals have been, and probably always will be, a powerful way to drive business growth. However, not all agencies excel at cultivating a steady stream of referrals. Some rely on luck, while others attempt to systematise referrals, often with mixed results.

What’s changing now is the emergence of partnerships—a more intentional and scalable approach. Partnerships don’t just happen by chance; they are deliberately cultivated relationships with businesses that complement your service offerings. For example:

  • SEO agencies can partner with PPC agencies to cross-refer clients without overlap.

  • E-commerce agencies specialising in Shopify could collaborate with platform specialists in BigCommerce or Salesforce Commerce Cloud.

  • A social media marketing agency might team up with a chat support agency.

The goal? To build a network of strategic partnerships that not only generate referrals but also bolster your agency’s reputation and service offerings.

Why Partnerships Work

Unlike one-off referrals, partnerships are built on mutual benefit and collaboration. Here are the main reasons partnerships are so effective for today’s agencies:

  • Predictable Lead Flow: Referrals can be sporadic, but a solid partnership delivers a consistent stream of leads.

  • Shared Expertise: Partnerships strengthen your positioning by enhancing the value you provide to clients, especially when accompanied by complementary services.

  • Stronger Branding: Collaborations with trusted partners boost your agency’s credibility, making you more attractive to potential clients.

  • Growth Opportunities: Partnerships often lead to collaborative pitching, joint events, and co-branded marketing campaigns, creating additional growth channels.

How to Build Strategic Partnerships

Building a partnership ecosystem may sound daunting, but by following these clear steps, you can make the process both straightforward and effective.

Step 1. Identify Potential Partners

Start by identifying service providers who share your target audience but don’t directly compete with your core offerings. Ask yourself:

  • Who works with my ideal clients but offers different services?

  • Who are the “go-to” agencies within my niche?

Tools like LinkedIn, Google, and even your existing network can help you uncover potential partners. For example, if you’re an SEO agency focusing on pet brands, look for PPC agencies, content creators, and e-commerce specialists with experience in that niche.

Step 2. Conduct Research

Don’t jump straight into contact. Research your prospective partners thoroughly:

  • Review their clients and case studies to ensure their quality aligns with your agency’s standards.

  • Check for cultural alignment. While having a shared ethos is important, the core focus should be on complementary services and how well you can collaborate.

Step 3. Make the First Move

Reach out to potential partners with a clear, transparent pitch. This could be through:

  • LinkedIn Messages: Personalised and direct.

  • Phone Calls: Quick and effective if you manage to connect.

  • Email: Ideal for outlining your mutual benefits in detail.

When initiating contact, avoid making the conversation overly transactional. Instead, position yourself as a collaborator and focus on building trust. For example:

“Hi [Name], I see we both work with [Target Audience]. I’d love to explore how partnering could benefit both our businesses. If you’re open to discussing potential collaboration, would you be available for a call next week?”

Step 4. Hold a Partnership Meeting

Once you’ve scheduled a meeting, prepare to make it productive:

  • Clearly outline your services and identify potential areas for mutual benefit.

  • Be transparent about your goals. For example, “I could introduce you to three businesses that align with your services, and you could do the same for us.”

  • Discuss shared KPIs or practical next steps for collaboration, such as co-hosting events or exchanging case studies to boost credibility.

Meetings shouldn’t just focus on niceties. The best partnerships stem from results-driven discussions.

Step 5. Maintain the Relationship

Partnerships require ongoing maintenance to thrive. Stay engaged by:

  • Scheduling regular check-ins to review progress.

  • Collaborating on joint marketing activities or shared initiatives.

  • Ensuring transparency in deals, including using NDAs if needed to protect sensitive information.

A well-maintained partnership can evolve beyond merely exchanging referrals into a true source of peer support and strategic advantage.

What Small Agencies Should Keep in Mind

Smaller agencies often see partnerships as the domain of larger firms, but this couldn’t be further from the truth. In fact, smaller agencies may benefit even more from partnerships due to:

  • Focused Niches: Specialised services make smaller agencies attractive partners.

  • Direct Access: Founders in small teams are often more hands-on, making partnership execution faster and more authentic.

If you’re a smaller agency, don’t shy away from partnerships. Instead, lean into them as an integral part of your growth strategy.

From what I’ve observed, challenges arise when competing against large multidisciplinary agencies, particularly those specialized in e-commerce
and offering a wide array of services. Instead of presenting a multitude of services, it may be more effective to focus on specific offerings and clearly express your unique value proposition.
— Guy Littlejohn, Facets

The Power of Niche Partnerships

Transitioning from a generalist to a specialist agency can amplify your ability to form meaningful partnerships. Consider focusing on a particular niche and building a network around it. For example:

  • An SEO agency specialising in e-commerce can partner with analytics, advertising, and CRO agencies in the same space.

  • An events-focused content creation firm can collaborate with PR agencies and event management companies.

Niching down does more than clarify your value proposition—it makes you an obvious choice for potential partners seeking complementary services.

Start Building Partnerships Today

Where referrals end, partnerships thrive. The dynamic and collaborative nature of partnerships allows for scalable growth, predictable lead generation, and stronger branding that traditional referrals simply can’t match.

At Facets, partnerships are more than just a tactic—they’re one of the key pillars of business development alongside sales, marketing, and customer success. By treating partnerships as a strategic priority, your agency can unlock untapped potential, adapt to market demands, and achieve long-term success.

Previous
Previous

Defining Partnership Success From The Technology Vendor’s Perspective

Next
Next

How To Kill Agency Churn - Tips From Over 100k Agencies