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9 Tips To Make Your MDF Go Further

For channel marketers, each new quarter brings a fresh set of market development funds (MDF). But how can you stretch those funds as far as possible and still drive results?

Sure, it helps to have co-branded marketing materials and a “campaign in a box” at your fingertips. But savvy channel marketers know that it takes more than tactics to bring success to both their company and their partner’s business. Instead, it takes strategy.

These nine hot tips can help you build a channel marketing strategy that will make your MDF funds go further...

1. Look Beyond The Quarter

Most vendors release funds on a quarterly basis. But if you wait to create your strategy until you know exactly how big (or small) your budget will be in the next quarter, you’ll fall behind fast. This kind of short-term thinking is why so many companies don’t use some or even all of their MDF funds.

You can get ahead by developing your strategies on an annual basis. Start with defining company goals across all of its partners. Then, match those goals to your partners’ spend. Focus your efforts on the partnerships that create the most opportunities for your company. This helps you develop proactive strategies that will impress partners and keep the MDF dollars coming.

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2. Know The Rules Of Engagement

There is no worse feeling than putting all of your efforts into a channel campaign, driving results, and then discovering that it’s not covered after the fact. (Cue the facepalm!) That’s why it’s important to know your partner’s rules for using MDF funds long before you spend a penny.

Vendors’ rules can vary greatly. Some may not cover media buys. Others may pay for ad creative but not for placement. Items like content syndication or website costs may or may not be permitted.

In addition, you must know and meet your partners’ submission and completion deadlines. Put them on your calendar so you can capture all eligible reimbursement.

3. Look For "Free" Opportunities

Not all channel marketing efforts require MDF funds. Many vendors supply co-branded campaigns that you can use for free.

To find them, review the materials in your partnership relationship management database see if the opportunities appropriately message both your partner’s brand and your company’s unique selling proposition.

Odds are, you’ll need to modify the messaging slightly, but if your partner’s materials are editable, you can edit and launch them quickly with little to no spend.

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4. Knock Down Silos

Unfortunately, not all vendors are excellent partners. Sometimes a company’s corporate marketing department may not fully understand why and how their channel partners contribute to everyone’s success.

You can get past these barriers by breaking down silos between you and your partner. Find a champion at the partner company who can help you understand more about your vendor’s overall approach to and support of their channel partners. Then, show that vendor why you’re an exceptional partner. Use your vendors’ premade campaigns. Post regularly in your vendors’ partner community. The more you engage, the more likely you’ll be approved for continued funding.

5. Collaborate, Don’t Compete.

Once you find the right champion inside a vendor’s corporate marketing team, ask them for insight into their campaigns. Then use that information to create complementary (and not competing) campaigns.

Sprinkle in the elements that make your company unique—the services you provide or the integration you offer. This collaborative approach will help you build your brand and generate leads for your vendors simultaneously..

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6. Go Full Funnel

Most vendors require their partners to generate a set number of leads per quarter. Seldom do they also require you to prove revenue. But even if revenue generation isn’t a written prerequisite, it’s a fact that all B2B companies expect their channel marketers to drive revenue.

The best way to become your vendor’s most valued partner is to always take a full-funnel approach with your campaigns, whether or not it’s required. Track all leads and identify when they convert into a sale. In some cases, you may be able to do this on your own. In other cases, you may need access to your vendor’s marketing automation systems or partner marketplaces..

7. Show Sales Some Love

In addition to finding a champion in your vendors’ corporate marketing team, you should become best friends with members of their sales team. Get them excited about the way you use their MDF funds and show how you’re helping them achieve their revenue goals.

Send thank you surprises like snacks or gift cards for including you within their channel marketing programs. When you’re top of mind with corporate sales, they’ll remember to tell their clients about your services when they identify the right fit.

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8. Spend It All

Never, ever, ever, EVER leave a penny of MDF money on the table. Even if you receive only a small amount of funds from a vendor, identify a low-spend activity that can help you drive results so you use every dollar—down to the last cent.

9. Find A Trusted Agency

Channel marketing is not the same as direct marketing. When you find an agency that understands this, you gain a partner who can help you stretch your MDF funds and scale your channel marketing efforts quickly.

When interviewing an agency, ask if they have channel marketing experience on both the vendor side and the channel partner side. Make sure they’re also well-versed in your industry. Also, ask your vendors if they work with any preferred agencies. If they do, you may be able to leverage a discount for using MDF funds.

Unreal Digital Group knows channel marketing inside and out. We understand how MDF funds work and know the rules of engagement. We also know how to create winning channel strategies that help vendors strengthen their partner relationships and help channel partners drive more leads and revenue.

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