We know from experiment experience that many channel businesses see proactive marketing as a significant expense, often opting for tried-and-tested tactics, such as networking and telemarketing instead. For those without a clear blueprint for success, attempting to drive new business through digital marketing can be quite overwhelming, and the costs quickly add up. when marketing isn't working and you're footing the bill yourselves, it's easy to get frustrated: an almost bottomless pit of expense with sometimes no clear route to profitability.
However, unlike a lot of verticals, some channel partners are fortunate enough to be able to take advantage of vendor marketing development funds (MDF), which are designed to support the growth of vendor-specific sales. Many IT businesses overlook these funds (either by assuming they're ineligible or by not knowing about them), which is an incredible missed opportunity.
These strategic funds are set aside for channel distributors, MSPs and resellers to use to fund proactive net-new-customer-focused marketing campaigns, and can be used to drive lead generation and increase brand awareness.
In this post, we look at vendor MDF, with tips on identifying the right marketing tactics to execute, the importance of delivering a strong return on investment (ROI), and the benefits of working with a trusted channel marketing partner.
The Basics of Vendor MDF
Vendor Marketing Development Funds (MDF) are funds allocated by vendors for their partners to use for a variety of marketing activities, including - but not limited to - advertising, events, training, and promotions. Each vendor has its own set of guidelines and rules regarding the use of MDF, so it's essential to read and understand them before applying for and spending MDF funds to avoid any complications.
The purpose of vendor MDF is to provide channel resellers with access to funds to promote their products or services effectively to a net new audience. With MDF, businesses can gain access to a more comprehensive range of marketing opportunities that might otherwise have been unavailable to them.
To access MDF funds yourselves, it's important to have a solid marketing plan in place, which should include a well-defined set of campaign goals, an overview of your target audience, an outline of what marketing tactics you are going to do, as well as timelines for execution, the budget you are looking for and what you hope to get back in return.
Why Vendor MDF Matters
With limited budgets and a very competitive marketplace, it can be challenging for the smaller MSPs and resellers to compete with larger companies in terms of advertising and wider marketing efforts. By utilising MDF, those smaller but ambitious businesses can access additional funds to support their growth strategies, enabling them to reach a wider audience and compete more effectively.
One of the major advantages of MDF is that it allows businesses to access a range of marketing opportunities or expertise that may have been out of reach otherwise; either by providing funds to support wider campaign reach or by providing additional marketing budget, which can be used to fund the costs of a third-party consultant or agency. Through MDF, channel partners can look to generate more leads, increase brand and product awareness, and ultimately boost their vendor-related revenues.
MDF can also be seen as an effective tool for strengthening the relationships between a vendor and its strategic partners. Through the allocation of funding and support, vendors can demonstrate their commitment to a partner's success and build trust over time. Similarly, channel partners can showcase their dedication to working with a particular vendor and their solutions. This two-way beneficial relationship can lead to more opportunities for collaboration, joint marketing efforts, and ultimately, growth for both parties.
Identifying the Right Marketing Tactics to Execute
When it comes to selecting the right marketing tactics to execute, there is a wide range of options available. Some popular MDF-funded tactics include events, paid social media advertising, PPC (pay-per-click), email marketing, and content marketing. However, selecting the right tactics for the target audience and marketing campaign is crucial to maximising the effectiveness of the MDF.
One way to identify the right marketing tactics is to consider the goals of your marketing campaign. For example, if your goal is to generate new leads, email marketing or a form of advertising may be the most effective tactic to use. However, if the goal is to increase brand awareness, social media posting, content marketing or event sponsorship may be more appropriate.
The most important factor to consider when selecting marketing tactics is your target audience. For instance, if your target audience is primarily active on social media, social media advertising or influencer partnerships may be the most effective tactics. Alternatively, if the target audience is primarily in the B2B space, events or targeted email marketing campaigns may be more suitable.
Ultimately, selecting the right marketing tactics to execute with vendor MDF requires a well-thought-out marketing strategy that links to your business objectives and has your target marketing personas in mind.
Example Activities
It's important that whatever activities you undertake, there's a strong likelihood of return. It's simply not enough to think about MDF as a one-time fund. Instead, approach marketing development funds strategically - with a view on driving the greatest ROI possible - and you could unlock additional funding to continue executing your go-to-market strategy longer-term.
Example activities that you could fund under the MDF umbrella include:
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SEO - a long-term play, building search visibility through a strategic approach to content creation
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PPC - responding to search terms driven by intent
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Paid social advertising - proactively engaging your target audience with your campaign content
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Email marketing - ad-hoc or automated comms promoting your content and CTAs
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Events - on-the-ground activities engaging your prospects; as a host to attendee
Delivering a Strong ROI
Delivering a strong ROI off the back of your MDF-funded marketing activities requires tracking the effectiveness of the marketing activities throughout the campaign and adjusting them as necessary. Key performance indicators (KPIs) such as website traffic, leads generated, and conversions should be monitored to determine the effectiveness of the campaign. By tracking these KPIs, you can adjust your marketing tactics to maximise effectiveness and ensure a strong ROI before it's too late. We recommend undertaking a continuous campaign monitoring and optimisation programme so that you can adjust your strategy throughout. This can involve adjusting the messaging or targeting of the advertising or changing the format or frequency of the content marketing.
You'll be expected to report back at the end, and sometimes throughout the campaign, so having these metrics to hand will be important.
Reporting Back on Activity (ROI)
Your reporting back to the vendor should include as many performance marketing metrics as you can. We always suggest working in a full-funnel way so that the vendor can see not only what leads you are generating, but how good your efforts are at moving people through your customer journey.
It's important to present the data clearly and concisely to make it easy for the vendor to understand the effectiveness of the campaign. Providing an analysis and insights about the campaign's performance also helps to bring to life the challenges and opportunities. Having an open and honest dialogue is key to building a long-term relationship.
In addition to reporting on performance, you may also be required to provide POE (proof of execution) in the form of screenshots, links and metrics. To avoid doubt, liaise with your awarding vendor to understand their specific requirements as failing to tick all of the necessary POE boxes may mean that you are unable to claim all of the activity costs back.
Working With a Trusted Marketing Partner
When it comes to utilising vendor MDF, working with a trusted marketing partner can make all the difference. A channel marketing agency with expertise in MDF can help you navigate the rules and guidelines associated with the funds and provide guidance on the most effective marketing tactics to use. Additionally, a marketing partner can help with the execution and reporting of the marketing activities, ensuring a strong ROI.
Your chosen partner should have solid experience delivering channel marketing campaigns, which will give your campaign the best shot at success. One of the major benefits of working with an experienced channel marketing partner is that they are likely to have plenty of experience in this space, and can bring learning and insights from other campaigns into yours. That means that your campaign has the best chance of hitting the ground running as a lot of the foundational learnings (such as understanding the channels and tactics, as well as content formats that will work) have already been done before.
Ultimately, working with a marketing partner can save you a considerable amount of time and resources.