Unlock Hidden Revenue: Getting Started with Marketing Development Funds

Struggling to generate leads and close business? You’re not alone. For many VARs, resellers and MSPs, keeping the sales pipeline full can be a constant battle.

However, there may be a hidden resource waiting to be tapped: Marketing development funds (MDF). Offered by many vendors, MDF programs are financial incentives designed to help channel partners like you drive mutual growth.

MDF can be a challenging, complex topic—but also provide MSPs with tremendous opportunity if you know what it is, how to request funding and understand which activities can maximize your return on investment.

Understanding the Basics

Vendors allocate MDF to support collaborative marketing activities with channel partners. It’s a win-win situation designed to generate qualified leads, expand your customer base and ultimately boost your bottom line.

While MDF programs vary by vendor, they generally follow a similar structure. Partners submit proposals outlining marketing activities that align with the vendor’s goals and target audience. If approved, the vendor co-invests in the proposed activities, sharing the financial cost.

Common MDF categories include:

• Co-branded advertising: Share the cost of advertising campaigns showcasing the vendor’s products and the MSP’s service or solution
• Lead generation: Attract qualified net new prospects that fit a target audience that is searching for solutions the vendor offers
• Partner enablement: Arm your team with the knowledge and skills to effectively sell and support the vendor’s solutions
• Customer events: Host educational events to engage existing and prospective customers about the vendor's offerings

Securing Funding

MDF programs are typically available to authorized partners in good standing with the vendor. Requirements may include completing product training, achieving specific sales targets or maintaining certifications.

When requesting funding, be prepared to submit a proposal that includes:

• A clear description of the marketing activity
• How the activity aligns with shared sales goals
• A detailed budget for the campaign
• Success metrics to report after the activity concludes

Knowing Where to Start

Securing MDF is a win, but most partners miss the bigger picture: Strategically investing those funds to maximize ROI. This starts with uncovering the most impactful marketing activities for your specific business and target audience.

Start with  Business Objectives

When deciding how to utilize MDF, the first step should be to align your campaign with current business objectives. Are you looking to acquire new customers, expand your existing customer base or retain current clients? Focusing MDF investments on activities that support your primary goals will maximize the return on investment.

Consider Your Internal Resources

Not all marketing activities are created equal. Before requesting funding for lead generation campaigns, for instance, ensure you have the necessary sales staff in place to follow up on qualified leads. Investing in lead generation without the resources to convert those leads into sales can be a waste of MDF.

Evaluate Existing Areas of Success

Identify areas where you are already running successful marketing initiatives. If customer events are a proven strategy for your business, consider requesting MDF to expand or enhance these events. Leveraging your existing strengths can be a successful way to use MDF dollars.

Consider Co-Marketing Activities

Co-marketing activities present a powerful way to leverage MDF. Some examples of co-marketing activities that qualify for MDF investment include:

• Developing co-branded content such as white papers, case studies or webinars
• Joint email marketing campaigns
• Co-hosting industry events or trade shows

When Vendor Funds Aren't Available

Even if MDF are not available, there are still ways to leverage vendor resources to support your marketing efforts. Many vendors offer free content like:

• Social media posts
• Marketing collateral
• Technical documentation

These resources can be incorporated into your own marketing tactics like email blasts, blog posts and social campaigns. In addition to marketing materials, many vendors have channel account managers (CAMs) or other technical resources available to participate in webinars or speak during your events. Leveraging these subject matter experts can add credibility to your initiatives.

Knowledge Is Power

By effectively utilizing MDF, solution providers can expand marketing efforts and accelerate business goals. Remember, MDF programs are a collaborative effort, so work closely with your vendor partners to maximize success.

In my personal experience, unique and seasonal, timely or thematic campaigns garner the most engagement and highest ROI. For example, I’ve worked with clever partners who play off product-related themes, hosting events like deep sea “phishing” or craw-“phish” boils. Unique sporting experiences during high-profile events, like the Indianapolis 500 or Kentucky Derby, always leave lasting memories and build deep customer rapport. Even leaning into a seasonal campaign like the 12 Days of Christmas, delivering a piece of high-value collateral for 12 days in December, will garner higher clicks and conversions than a random marketing email.

By thinking outside the box and having fun, your MDF campaign will surely standout from the crowd.

Terez Leach is manager, MSP community engagement, at Trend Micro and an executive council member of the CompTIA Community – North America.