Making The Most of Partner Funding
Here’s a harsh truth, which too many channel partners learn the hard way; If you don’t use your Market Development Funds (MDF), you lose them. Every quarter, millions in partner funding remain untouched, sitting in budgets that were meant to generate leads, boost brand visibility, and drive revenue.
In fact, while a precise percentage is difficult to pinpoint, recent industry reports suggest that up to 60% of allocated MDF goes unused every quarter. That’s not just lost budget, that’s lost pipeline, lost growth, and lost opportunities for market impact.
From CRN partner guide research, the vast majority of partners stated that focus is on demand generation and therefore MDF funding usage should reflect this.
There is also funding support available for go-to-market (GTM) initiatives that align with a vendor’s strategic goals. A well-executed GTM strategy can attract investors and improve funding outcomes.
What is MDF and Why Should it Matter to You?
MDF (Market Development Funds) are budgets provided by vendors to their channel partners to support sales and marketing initiatives. Think lead generation campaigns, co-branded advertising, ABM programs, event sponsorships, or digital outreach.
These funds are designed to accelerate your success, helping you reach the right buyers faster, often with zero impact on your own marketing budget.
But there’s a catch – most MDF is “use it or lose it.” These funds expire quarterly, and unspent allocations don’t roll over.
So, while your vendor may have set aside thousands for your marketing efforts, if you’re not proactive, that money simply disappears.
The Opportunity You Might be Missing
Globally, vendors allocate billions every year in co-op and MDF funding programs. And yet, studies show that more than half of all funding remains untouched every single year, which is a huge waste of potential.
Imagine what this additional funding could do for your pipeline:
– Telemarketing outreach to high-impact leads
– A LinkedIn re-targeting campaign targeting key decision-makers
– A virtual event or webinar to educate and engage
– A nurture campaign to warm up cold accounts
These are all MDF-eligible initiatives that vendors want you to run.
So why is so much MDF left unused?
There are various reasons that businesses don’t use up all of the funding provided.
Navigating the process can be difficult. MDFs are often allocated without a clear understanding of the channel’s needs or the desired ROI and there can be a disconnect between vendors and partners regarding funding usage and expectations. Also, without proper tracking, it can be difficult to determine which MDF activities are truly effective and which are not.
These factors, along with lengthy approval forms, missing deadlines and the fact that partners are too busy to build campaigns from scratch, can all contribute to MDF ending up being wasted.
Overall, a lack of strategic planning, poor communication and poor coordination are the overriding factors. But what’s important to remember is that MDF isn’t extra budget, it could well be your competitive edge!
When treated like a ‘nice to have’, it becomes a missed opportunity. But when you treat it like part of your strategy, you unlock an avenue to more reach, more revenue, and better results, all of which is co-funded.
So, How Do You Make The Most of Your MDF Before it Expires?
1. Develop a clear strategy. Define specific goals and objectives for your channel program and align MDF allocation accordingly.
2. Know your funding window: Track the deadlines, set reminders and be proactive, not reactive.
3. Create a ready-to-go marketing menu: Have pre-scoped campaigns (like telemarketing and digital outreach, paid media, or events) that align with what vendors typically approve.
4. Engage your vendors early: Ask what’s available and what types of campaigns they’re prioritising for funding.
5. Partner with experts – work with an agency or provider experienced in MDF-eligible campaigns. They can help with planning, approvals, and delivery.
6. Report ROI clearly: Vendors are more likely to fund your campaigns again if you show results, so build a simple reporting loop.
How Can We Help?
Don’t let free funding go to waste! If your vendor has allocated MDF, it’s not just money…it’s belief in your potential to grow together.
At GCL we have worked with many companies to help them maximise return on their MDF spend and we have over 35 years of experience in B2B telemarketing outreach, lead generation, lead nurture and data strategies.
If you have any questions, or would like some more information on how we could help your business, feel free to contact us today on 0121 452 2020 or email us on info@gclb2b.com.
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