Market development funds (MDF) offer a brilliant business opportunity for vendors and resellers. MDF provide financial support to offset resellers’ marketing costs, are best used for activities that grow both partners’ brands, and raise product awareness in a specific market. However, despite the great potential of MDF, many vendors and resellers have difficulty implementing successful programs. That’s why the Institute of Partner Education and Development (IPED) researched how Best-in-Class Solution Providers used MDF and how their techniques differed from those of other resellers.
IPED found that best-in-class resellers put significant focus on the MDF funded marketing activities. And, rather than invest a little bit of money into every program-approved marketing activity, these resellers opted for a more focused approach. They used MDF for the two to three campaigns most likely to penetrate the market, and they applied the funds in the first fiscal quarter as “an integrated part of a sales pipeline and conversion process.” Successful programs were highly ROI-oriented and integrated sales and marketing (using the vendor’s expertise) for a more holistic approach.
Which of these strategies are you currently using for MDF programs?