How to Make the Most of Market Development Funds (MDF) for MSPs

As an MSP, finding ways to promote your business and increase revenue can be a challenge. Fortunately, Market Development Funds (MDF) offer a valuable resource that can help MSPs grow their business and promote technology vendors’ products and services. In this blog post, we will provide an overview of MDF funds, how they work, how MSPs can use them effectively, and the vendors that offer MDF funds.

What are MDF funds?

Market Development Funds (MDF) are a type of co-op marketing program that technology vendors offer to their channel partners, such as MSPs. The purpose of MDF funds is to help channel partners promote the vendor’s products and services to end customers.

MDF funds are typically a percentage of the vendor’s sales revenue, which is set aside for marketing activities. The percentage may vary depending on the vendor, the product, and the target market. For example, a vendor may allocate 2% of their sales revenue for MDF funds for a specific product line.

MDF funds are designed to provide channel partners with financial assistance to create marketing campaigns that promote the vendor’s products and services. The funds can be used for a wide range of marketing activities such as creating whitepapers, hosting events, and running social media ads.

The vendor typically has guidelines and criteria for how the funds can be used, and MSPs must follow these guidelines to receive reimbursement for their marketing activities. Some vendors may require MSPs to submit a marketing plan before providing MDF funds to ensure the marketing campaign aligns with the vendor’s goals and objectives.

How do MDF funds work?

MDF funds are typically allocated to channel partners based on their sales performance or the vendor’s channel program levels. Once an MSP qualifies for MDF funds, the vendor will provide guidelines and criteria for how the funds can be used. These guidelines may include:

1. Eligible marketing activities: Vendors may provide a list of eligible marketing activities that MSPs can use the funds for. These activities may include hosting events, creating whitepapers, running social media ads, and producing videos.
2. Reimbursement process: Vendors may provide guidelines for how MSPs can claim reimbursement for their marketing activities. MSPs may be required to provide proof of their marketing activities, such as receipts, invoices, or attendance records, to claim reimbursement.
3. Fund expiration date: MDF funds typically have an expiration date, and MSPs must use the funds within a certain time frame. If the funds are not used by the expiration date, they may be forfeited.
4. Fund caps: Vendors may limit the amount of funds that MSPs can use for a particular marketing activity. For example, a vendor may set a limit of $5,000 for hosting an event.

MSPs must follow the vendor’s guidelines and criteria to use the MDF funds effectively. Failure to follow the guidelines may result in the forfeiture of funds or the rejection of reimbursement claims. To ensure compliance, MSPs should communicate regularly with the vendor and review the guidelines before using the funds.

How are MDF funds used?

MDF funds can be used in a variety of ways to promote the vendor’s products and services. Here are some examples of how MSPs can use MDF funds effectively:

1. Trade shows and events: MSPs can use MDF funds to participate in trade shows and events that attract their target market. These events provide a platform for MSPs to showcase the vendor’s products and services, generate leads, and network with potential customers.
2. Online advertising: MDF funds can be used to run online advertising campaigns, such as Google Ads or social media ads. These campaigns can target specific audiences and increase brand awareness and lead generation.
3. Content marketing: MSPs can use MDF funds to create high-quality content, such as whitepapers, case studies, and e-books, that educates their target audience about the vendor’s products and services. This content can be shared through email marketing, social media, and the MSP’s website.
4. Incentive programs: MSPs can use MDF funds to create incentive programs for their sales team to promote the vendor’s products and services. These programs can include bonuses, rewards, and other incentives that encourage sales team members to focus on the vendor’s products and services.
5. Training and certification: MDF funds can be used to provide training and certification to MSPs’ sales and technical teams on the vendor’s products and services. This training can improve the sales team’s knowledge and expertise, resulting in more effective sales and customer support.

By using MDF funds effectively, MSPs can promote the vendor’s products and services, generate leads, and increase revenue. However, it is essential to ensure that the marketing activities align with the vendor’s goals and objectives and follow the guidelines provided. MSPs should regularly communicate with the vendor and track the results of their marketing activities to ensure they are getting the most out of their MDF funds.

What vendors offer MSPs MDF funds?

Many vendors in the technology industry offer MDF funds to their MSP partners. Here are some examples of vendors that offer MDF funds and the programs they offer:

1. Microsoft: Microsoft offers MDF funds to its MSP partners through its Microsoft Partner Network. The funds can be used for a variety of marketing activities, such as online advertising, trade shows, and events. MSPs can apply for MDF funds through the Partner Marketing Center.
2. Cisco: Cisco offers MDF funds to its MSP partners through its Partner Marketing Central program. The funds can be used for a variety of marketing activities, such as webinars, content marketing, and lead generation programs. MSPs can apply for MDF funds through the Partner Marketing Central portal.
3. IBM: IBM offers MDF funds to its MSP partners through its PartnerWorld program. The funds can be used for a variety of marketing activities, such as events, webinars, and content marketing. MSPs can apply for MDF funds through the PartnerWorld portal.
4. Dell Technologies: Dell Technologies offers MDF funds to its MSP partners through its PartnerDirect program. The funds can be used for a variety of marketing activities, such as trade shows, online advertising, and events. MSPs can apply for MDF funds through the PartnerDirect portal.
5. HP Inc.: HP Inc. offers MDF funds to its MSP partners through its Partner First program. The funds can be used for a variety of marketing activities, such as online advertising, events, and lead generation programs. MSPs can apply for MDF funds through the Partner First portal.
6. Amazon Web Services (AWS): AWS offers MDF funds to its MSP partners through its AWS Partner Network (APN) program. The funds can be used for a variety of marketing activities, such as online advertising, events, and content marketing. MSPs can apply for MDF funds through the APN portal.

These are just a few examples of vendors that offer MDF funds to their MSP partners. Many other vendors offer MDF funds as part of their partner programs. MSPs should check with their vendor partners to see if MDF funds are available and what marketing activities they can be used for.

How can MSPs ensure successful MDF campaigns?

To ensure a successful MDF campaign, MSPs need to plan their marketing activities carefully, ensure compliance with the vendor’s guidelines, and measure the success of their campaigns. Here are some tips for MSPs to ensure a successful MDF campaign:

1. Develop a marketing plan: MSPs should create a marketing plan that outlines the marketing activities they will undertake, the target audience, and the expected outcomes. The marketing plan should align with the vendor’s goals and objectives and take into account the guidelines provided.
2. Allocate funds strategically: MSPs should allocate MDF funds strategically to achieve the best possible return on investment. This may involve allocating more funds to high-impact marketing activities that generate leads or sales, such as trade shows or online advertising campaigns.
3. Track campaign results: MSPs should track the results of their marketing activities regularly to ensure that they are meeting their goals and objectives. This may involve tracking website traffic, lead generation, or sales conversions. MSPs should also track their expenditure and reimbursement claims to ensure compliance with the vendor’s guidelines.
4. Communicate with the vendor: MSPs should communicate regularly with the vendor to ensure that their marketing activities align with the vendor’s goals and objectives. This may involve sharing the marketing plan, reporting on campaign results, or seeking feedback from the vendor.
5. Measure and optimize: MSPs should measure the success of their marketing campaigns and optimize their marketing activities based on the results. For example, if a particular marketing activity is not generating leads or sales, the MSP may need to adjust the activity or allocate funds to a more effective marketing activity.

By following these tips, MSPs can ensure that their MDF campaigns are successful and generate a positive return on investment for both the MSP and the vendor.

Need help executing your MDF marketing campaigns? Contact eBridge today.