Market Development Funds Best Practices that Demonstrates your Interest in the Success of Channel Partners
One of the Market Development Funds Best Practices that is easily overlooked is the vendor’s interest in the success of its partner.
Dale Carnegies famously coined, “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”
Apply that idea to the partner distribution channel.
When you fully invest in the success of channel partners, you will achieve greater buy-in.
Therefore, by developing a clearly mapped out incentive that leaves no room for mystery or subjective thinking—partners will invest in you.
Following is information on market development funds best practices and on how to create successful MDF programscreate successful MDF programs that demonstrate your interest in the success of channel partners by removing ambiguity:
1.) Market Development Funds Best Practices: Provide Overview of Eligibility and Objective
Do you make certain which partners are eligible to participate?
Partners—unsure if incentive applies to them—are likely to ignore opportunity due to the potential of ineligibility.
Examples of defining program-exclusivity:
- The Program applies to value-added resellers who are top-tier buyers
- Program pertains to partners selling to end-customers in the educational sector
- The program applies to partners that sell ABC product to ABC resellers
It is also essential that your MDF opportunity has a clearly stated objective.
The goal of ABC program is to give our ISV partner-base the opportunity to be the first to promote ABC product(s) to the X marketplace.
2.) Market Development Funds Best Practices: Ensure a Seamless Opt-in Process
Step-by-step instructions don’t only save time for partners, it also helps to remove any concerns associated with “am I missing anything?”
The more partners have to ‘figure out things for themselves,’ the less likely they will participate. Following are examples of providing comprehensive instructions for partners to participate:
A.) Available Market Development Funds
Partners will have access to marketing dollars as soon as they are made available in your Partner Portal account (this takes approx. one month after the quarter has finished).
To view how much MDF marketing funds you have available, follow these 4 steps:
1.) Go to https://www.abccompany.com/partners
2.) Log in your Partner Portal account
3.) Click on “available funds” in the top right corner of your screen
4.) Click the link to download claim request package
B.) Market Development Funds Claim Request Process
Step 1: Complete and submit the MDF form via Partner Portal in PDF format
– 3 weeks before marketing activity start data
– Must have adequate funds available in order to receive reimbursement
Step 2: Approval for a request will return within 24-72 hours
– Once approved, proceed with MDF activity
Step 3: Submit your pre-approved MDF claim request with 14 days of the program end date
– Include pre-approved MDF form (PDF format)
– Provide a catalog of costs accumulated for reimbursement (Excel format)
– Include invoice total and the amount claimed
*Pre-approved claimable amount is the cap amount that will be reimbursed, or credit may be less than cap amount after reviewing of claim
C.) Market Development Funds Parameters to Remember
– Include only one claim document (claim may have more than one invoice)
– In order to remain eligible for additional MDF opportunities, accounts payable must be in good standing with ABC company
– Partners may not deduct from an invoice for ABC company’s products or services
– Currency: $US dollars