How to start restructuring your marketing funds to better support ROI


The most common and obvious restriction to building a successful marketing partnership is funding. While channel partners view vendor marketing as cost reduction for their own business needs, vendors cut marketing funds by providing partners with minimal resources. The results: fewer products sold, weaker return on investment (ROI) for all. The solution is to examine the current structure of your funding and tweak (or revamp) it to achieve greater ROI.

To start:

  1. Understand the overall compensation approach your company is taking and where marketing funds fit in that model.
  2. Determine which marketing funding model you’re using (MDF or co-op) and understand the rules—both government and internal—that apply.
  3. Determine how success is measured for marketing investments (ROI).
  4. Review any materials, systems, and results your company may already have for partner funding.
  5. Review competitor programs as well as vendors in adjacent areas to understand the differences and similarities.

While this is only a basic overview of complex structures, it’s a proactive start to restructuring your marketing funds in a more productive (read: profitable) way.

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