A Sirius Decisions report states that in order to help drive demand generation, channel organizations send between 35-54% of channel marketing budgets on programs for their partners. But, did you know approximately $250 million made available to channel partners in MDF goes unclaimed each year?
2. Are You Utilizing the MDFs Available
To You As A Reseller?
A Sirius Decisions report states that in order to help
drive demand generation, channel organizations spend
between 35-54% of channel marketing budgets on
programs for their partners. Of these programs, 80-90%
are funded through proposal-based Market Development
Funds (MDFs).
While it’s no secret that manufacturers have adjusted
the way they distribute partner-funded programs,
rest assured, there IS money out there for you to
have. Also, trends are showing partner-driven demand
programs are on the rise.
So, What’s the Big Problem Around
MDF Programs?
Successful MDF programs can drive revenue, produce
increased awareness about your business, and, in some
cases, offer incentives and rewards from the manufac-
turer. Each year, approximately one billion dollars are
made available to channel partners, but did you know an
estimated 25% of the $1 billion in MDF available to the
channel goes unclaimed each year?
After years of working with manufacturers and their
channel partners, we find there are two common prob-
lems around resellers and distributors accessing MDF
Funds: Awareness and Participation.
Are you eligible to
participate in MDF
programs? Contact
your manufacturer
to find out.
Awareness of the Funds
Don’t kick yourself for not knowing! Some manufacturer programs have sales tiers or quali-
fiers in order to participate, so you should check with your manufacturer to see if you are
eligible. Your manufacturer may also require you receive training or achieve certain levels of
certification.
Co-op funding may be more readily available than MDF funds, as they’re usually allocated
based on incentives or sales levels. They also don’t require much pre-qualification. MDF funds
can be a little more challenging as the programs tend to be less defined and manufacturers
rely on the partner to “propose” how to use the funds.
What Can MDF Funds Do For You?
Brand
Awareness
Increase
Sales
Create
Leads
Strenthen
Relationships
> > >
in MDF available
to the channel
goes unclaimed
each year.
$250M
3. Available MDF/Co-Op Programs
Lead
Generation
The generation of
buyer interest or
inquiry into prod-
ucts or services of a
business.
Lead
Nuturing
The building of rela-
tionships with poten-
tial clients even if
they are not currently
looking to buy.
Appointment
Setting
The making of quali-
fied appointments
to develop sales
leads and increase
new client revenue.
Attendance
Generation
To drive qualified
prospects to events
such as tradeshows,
conferences, presen-
tations and webinars.
Google
AdWords
Keyword advertising
system in which ads
appear as “sponsored
links” on the Google
results pages.
Social Media
Campaigns
The process of
gaining traffic or
attention through
social media, i.e.
blogging, Facebook.
Multi-touch
Campaigns
Marketing
campaigns that
utilize multiple
methods of reaching
out to prospects.
Email
Marketing
A form of direct
marketing which uses
electronic mail as a
means of communi-
cating to consumers.
List
Purchases
Custom-targeted
mailing lists based
on geographic and
demographic criteria.
Website
Redesign
The process of
revamping a website
to keep it fresh,
up-to-date, and user-
friendly.
Direct
Mailings
A form of direct
marketing which uses
mail as a means of
communicating to
consumers.
Market Development
Funds (MDFs)
range from sales
support to full-scale
marketing nurture
campaigns.
Manufacturers Want You To
Participate In MDF
When we talk to the manufacturers, the biggest chal-
lenge heard involves getting their channel partners to
participate in these programs!
To address some of the complexities around MDF
proposals, more channel marketing teams are putting
together prescriptive channel plays from which a partner
can choose to simplify the process. These plays outline
the marketing activity, cost, duration, components and
deliverables. For those who are new to the MDF world,
the idea of planning, executing and reporting ROI can
be overwhelming, so manufacturers are also lining up
third party marketing and sales resources to help.
How Do I Get Started?
Channel marketing teams have goals for field partici-
pation, so the impetus is on your reseller organization
to determine their eligibility and take advantage of the
programs being offered to accelerate sales.
• Contact your manufacturers to learn about their MDF
programs, and find out if you’re eligible.
• If you are not eligible, find out how to become
eligible in order to participate.
If you are eligible for MDF, you will need to consider the
parameters of your goal:
• What, specifically, are you hoping to achieve?
• How much money is available to you?
• How long are you expecting the program to last?
• How much involvement do you want with the execution
of the program?