Understanding market development funds (MDF)
If you’re unfamiliar with market development funds (MDF), you’re likely leaving some eligible funding on the table. MDF can form a key part of the business strategy for organisations that operate, at least in part, within the IT channel ecosystem. MDF can be used to finance a variety of marketing activities, including:
- lead generation
- content development
- events.
An MDF program should be treated as an extension of the business and be mutually beneficial to the vendor and their channel partners. When successful, an MDF program should benefit channel partners in the following ways:
- increase brand awareness
- generate more leads
- provide additional marketing support.
Three ways MDF marketing can help channel partners reach their goals
Vendors can drive strategic transformation for their customers by establishing strong relationships with their channel partners and supporting them in implementing vendor marketing funds programs. This can help channel partners reach new audiences and/or gain a greater share of wallet with existing audiences. By working together, vendors and channel partners can exponentially increase the value of their marketing efforts.
However, campaigns that use MDF shouldn’t be run in isolation. Instead, they should complement existing marketing strategies, weaving in both organisations’ key messages and calls to action. By doing so, vendors can help to support their eligible channel partners to boost their marketing efforts.
There are three ways MDF can help channel partners reach their goals:
1. Market development fund programs accelerate business growth
Every company is looking to increase sales results, and the best way to do that is by improving product visibility and establishing a solid online presence. However, word of mouth isn’t enough to get your company to meet its growth goal. Instead, you need professional marketing. But what happens when you’re short on marketing funds?
MDF is available from vendors and can be used to fund your marketing program as long as it meets the vendor’s requirements. Far too many reseller partners are unaware of the MDF opportunities available to them for a variety of reasons, including:
- limited resources
- lack of understanding
- inexperience.
However, MDF programs can offer significant growth opportunities, uncover quality leads, and help build revenue. This helps to increase new business opportunities for channel partners, generating a quantifiable return on investment (ROI), which is essential to growing your business.
2. MDF programs create targeted opportunities
For channel partners, although the campaign is funded by your vendor, you remain in control of the program messaging itself and can tailor it to suit your needs, whether you’re looking to generate new leads, foster top-of-funnel awareness, or increase sales.
MDF programs offer significant flexibility and control over activities and the segments you will focus on.
3. MDF programs foster stronger partnerships
MDF provides a structured vehicle for both vendors and partners to invest in activities designed to optimise partner strengths and produce the highest possible returns for everyone.
Collaborating on MDF programs can improve your partner-vendor relationship by giving you opportunities to cooperate and build trust for the companies’ mutual benefit. By working together to run a successful campaign, both teams can become better acquainted with each other and create stronger partnerships.
Each member of the partnership brings a different strength. As a channel partner, you know your markets and account bases better than anyone. It also shows your vendor the level of commitment you have to the partnership, which will pay future dividends as you work together to build your market share.
Grow your business with market development funds
MDF programs can be complex and involve lots of moving parts. MDF that remains unspent represents a lost opportunity, so it’s important to understand the potential challenges of MDF and then work to overcome these barriers. This whitepaper will help you further understand the common challenges around maximising MDF programs and how to address these pain points with viable solutions.
Still, the MDF journey is often fraught with obstacles impacting lead generation, increased revenue, and future business opportunities. Partnering with a marketing agency with significant experience in helping resellers manage MDF opportunities is invaluable when it comes to achieving maximum success.
When your vendor engages the services of a third-party provider like Outsource to support IT channel partners like you with marketing support services, it streamlines the MDF marketing process and can make it easier and more efficient to achieve your goals. With expertise in the field, an agency can ensure your campaign is on the right track, effectively communicate with your vendor to achieve a mutually beneficial program, and provide additional marketing efforts that complement and bolster your MDF campaigns.
For more information on how to leverage MDF programs to reach your goals, contact the Outsource team today. Or, download our whitepaper to find out more about how we can help you streamline your MDF programs.
