I don't know if anyone cares or not, but a bunch of the macros I've uploaded to this forum, that a lot of people use, would break if nested folders were implemented. I don't have the time or energy to fix them, so for me personally, I'm thankful @peternlewis isn't going to implement this. 
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Ah, I get it.
But a refid is an inscrutable thing.
Just adding my +1 to this request as well. Even if there was a way to "tag" Macros or Folders, and then create some sort of Smart Folder system, that would be great for organization.
KM already has a “Smart Groups” concept available. Check it out here: https://wiki.keyboardmaestro.com/manual/Smart_Groups
Hey Renton,
Now you've gotten that off your chest again... 
I refer you to post #2.
I get where you're coming from and have some 164 macro groups myself.
I was wishing again just yesterday for nested groups, but Peter says we're an extreme minority – and it's not worth his development time, effort, and dollars.
Put up a cool million US dollars, and you might incentivize a change in his perspective – but your considered arguments aren't likely to build any ships.
So... We have to live with what we've got.
These macros by @DanThomas are worth looking at if you haven't seen them and might just ease your way a bit.
MACRO: [KMFAM] Favorite Actions and Macros
MACRO: Go To Group by Name (Spotlight)
Go To Macro by Name (Spotlight)
MACRO: Execute (Trigger) Macro by Name (Spotlight)
-Chris
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I've got a script that lets you export selected macros instantly – date-stamped, so you can save multiple versions if desired.
With a bit of work I could make them save to folders named for their Macro Groups, and I'll do this when I have a little time.
That makes the pain of saving versions and exporting things much less.
-Chris
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+1 for groups within groups. I think it will benefit all in some way or another, even those who don't have tons of macros.
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Just today I was proliferating visual icons on macro groups in order to, once again, create some kind of grouping hierarchy among the overwhelming classifications and modes of use.
It's true that while organization can be a wasted effort when implemented before necessary, it's never too early to get things organized.
Somewhere out there is a tech admin who is organizing Keyboard Maestro on multiple computers for multiple users and who wants a crystal clear, bulletproof organization, semantic also in its organization, to make everything dead simple in a high pressure situation. This person is dying for KM folderized macro groups. Again, this person is the minority. But most everyone would benefit from the discipline of setting things up like this, except where setting it up requires more time and brainpower than it saves.
As one gets older, one wants to waste as little extra time as possible - including searching through long lists of flat-list deactivated things. This brings up the idea of...
=== Searchable Folderized Macro Groups ===
Whether integrated into the existing Search scheme (macros) or a separate Macro Groups search plan, an all-encompassing search tool which would could locate instances of:
Macro Group Folders
Macro Group Folders (Nested)
Macro Groups
Macros
Ye Olde finding anything you're looking for 'search results appear as you type' in any layer of hierarchy. We don't need tags (tags feels overly complicated here but some would prefer this, and I can immediately imagine use-cases).
Macro Group Folder and Macro Group level search would be so great. Imagine searching by Macro Group name, or modification date range, or by Available In/Activated When/Palette descriptors... with a Folder structure hierarchy in place, Macro Group names could get longer and be more descriptive again, making intuitive searching more easy, especially when one's brain is full of 10 macros and 5 variables and 'where the heck did i do that thing three years ago'.
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Very-very-very need this nested groups! Already have a complete mess in my hierarchy with no option to nest groups 
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I understand the complexity Peter.
That said – the new option to display a Macro Group in the menu bar is fantastic – and the ability to then include nested groups within such a menu bar would add even more to the usefulness.
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+1
Nested ”folders” for Macro Groups.
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Oh man, add me to the list...I would love to have nested folders!
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BIGTIME ++++++1 for nested groups here !!!! 
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+1 folder and subfolder structure needed.
i have more than 500 macros. need more functions to manage them.
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yes. i have 273 macro groups and growing. any overarching folder structure should also have the same folder icon control, and also OSX Classic style colour-band labels at all levels of the hierarchy - so helpful!
Firefox has for its bookmarks an inelegant but functional basic organizer. It represents an easy place to crib from.
I would LOVE nested Groups in KM Maestro.
I hope enough users post in this thread to qualify as a significant number to Peter.
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+1 and another big vote for folder organization. As Brian Wilson once said "Wouldn't it be Nice"
I would appreciate nested folders.