Making the most of marketing development funds (MDF) can be confusing, especially with the guidelines and rules for proof of performance (POP) requirements. Many tech companies overlook valuable marketing opportunities by not fully exploring their available options.
Don’t let MDF go to waste! This blog covers strategies to maximize MDF impact while meeting POP rules.
If you are a technology channel partner and you are unfamiliar with what marketing development funds (MDF) are and how they work, then read on! You may be missing out on eligible funds that will help you plan your marketing strategy as well as generate qualified leads.
Marketing development funds are sometimes referred to as market development funds (or co-marketing funds) and more commonly by the acronym MDF. In the B2B SaaS market, MDF are financial initiatives offered by vendors or distributors to their channel partners, enabling them to increase brand awareness and drive product sales through marketing campaigns or development programs.
Some effective marketing tactics that you can use MDF to finance include:
When is the application deadline for any MDF available to your company? Find out what programs are expiring at the end of the current fiscal year and make sure you take advantage of any funds that you are eligible for. You don’t want to miss out on any available marketing dollars!
Get your channel manager (or an experienced marketing agency) to guide you through the proposal process and find out what specific tactics the funding covers. Also ensure that you find out critical details such as what date your tactic must be executed by and the deadline date to claim your MDF reimbursement.
Ensure your proposal is comprehensive and includes all the details of the marketing activities you are applying for. Specify your target metrics and clearly demonstrate how the tactics will achieve the overall marketing goals of both parties by promoting the vendor's solution while highlighting the added value your company provides.
Make sure the success of your chosen tactic can be measured and tracked, as vendors often require proof of performance (POP). Some examples of POPs could include: registering qualified leads with your vendor, providing invoices for advertising or event expenses, sharing screenshots of social media posts, or submitting engagement metrics from digital ads.
Keep in mind that certain practices, like giveaways or gifts, may be prohibited and certain expenses might not be eligible or may be limited in terms of reimbursement. To ensure compliance and get the most out of your MDF program, work closely with your channel manager or a knowledgeable marketing agency to help with requests and reimbursement claims after implementing your tactic.
By following these marketing development fund best practices, you can maximize the value of your available program funds.
Think of MDF programs as a means to support your broader marketing and business goals. Treat the funds provided by your vendor as if they were your own money and choose initiatives that deliver real value instead of spending just to use up “free” funds. Keep in mind that these tactics are also partially funded by your company’s hard-earned dollars. For guidance on getting the most out of your marketing development funds, consider consulting trusted experts like GamePlan Marketing, who specialize in managing these programs effectively.