As Channel Chiefs take stock of business, they are closely evaluating their partners’ performance and partner programs. Most are seeing some good success, and there are probably areas where improvements can be made. When it comes to Market Development Funds (MDF) – channel leaders are evaluating how MDF is being spent by partners, the return to the company, and in most cases, how much is sitting unused each quarter, half, and year.
If you are a vendor and find that only your largest partners are utilizing your MDF, if those partners are still spending on old-style events and tchotchkes, and/or if you struggle to measure return, you may need to modernize. And you’re not alone. Not by a long shot.
The numbers are staggering. Surveys report that up to 60% of MDF goes unused by partners. And, according to the Channel Marketer Report, $25 Billion in MDF and co-op funds go unused every year.
There’s a new trend for partner MDF – and it’s a Marketplace
Modern, digital marketplaces are everywhere, and their growth is rapid – for good reason. Marketplaces are convenient, buyers can very easily navigate them, find what they want, and purchase what they need. Why not give your partners the exact same frictionless experience?
Instead of handing out funds and hoping they are put to good use, you can list pre-approved, brand-compliant digital marketing services in an MDF marketplace that your partners can access. Sure, you can include more traditional and event services, too – events will be around probably forever. But you can offer many more modern, digital options that will benefit both you and your partners.
Effortless for Partners
We know that the vast majority of reseller partners are small or medium-sized businesses. (In the technology channel, it’s about 90%.) Partner marketing statistics report that 84% of partners do not have a dedicated marketing resource and fewer than 15% of partners engage in the marketing programs their vendors deliver. So, what’s different about this marketplace?
1. The services in the marketplace are centrally controlled so that the messaging, content, and deliverables always align with your brand and company objectives.
2. The services are pre-approved by you. You can skip the up-front process of funds request and approval.
3. Partners can select services that are fully managed and touch-free. After a simple onboarding session, the partners can sit back and watch the work get done while they (and you!) reap the benefits
4. At the end of the period (quarter/half/year), you can skip the claims process. The centralized nature of the services provides you with all of the data, analytics, and results that you need – by service, by partner, by period.
5. This data gives you the ability to measure and report and take control of your budget and the results.
What does an MDF Marketplace cost?
It doesn’t have to be an incremental cost at all. Instead of handing out funds to partners for reimbursement, the partners are given a budget to “spend” in the marketplace, and the funds flow to the service providers in the marketplace directly.
Same MDF budget. Fewer transactions for you with more control. Better services with less effort for your partners.
Improve Your Channel Program
If you’re currently reviewing your MDF program and thinking about how you can modernize it, and inject new, digital life into it – at any MDF budget level – consider the MDF Marketplace.
- To increase MDF utilization
- To include more partners
- To proactively drive growth with smaller or newer partners
- To add flexibility
- To increase modern digital marketing options for partners
- To reduce complexity
- To increase control
- To reduce administrative burden for themselves and their partners
- To increase partner satisfaction
- To have better analytics and visibility to results
- To improve ROI
An MDF Marketplace with the right combination of easy-to-find-and-select digital partner marketing services can ignite partner engagement and improve all of these KPIs for you.
Get Started Now
Want to explore an MDF Marketplace in more detail? AscendX Digital is a pioneer in next-generation partner marketing services built on modern technology. With decades of experience working with technology vendors and partners, we can implement an MDF marketplace for your business in a matter of weeks. Contact us for a demo or a no-obligation consultation. We can help you get more from your partner investments. Visit our website at ascendxdigital.com.
