The MDF Marketplace – Why every vendor should have one
We are a little more than halfway through the year, a time when most leaders are taking stock of business, and Channel leaders are evaluating their partners and programs. You are probably seeing some good success, and there are probably areas where you would like to see improvement. At this time of the year, most are evaluating MDF – how it’s being spent by partners, the return to your company, and in most cases, how much is sitting unused from the first half.
If you still have utilization from only a subset of larger partners, if those partners are still spending on old-style events and tchotchkes, and 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. A global survey by Zinfi found 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.
The rest is spent mainly on events, with little spent on digital marketing and initiatives. This scenario leaves little opportunity for control by the vendors, and it makes it difficult to measure return. And – your partners aren’t investing in being found in the digital customer journey which is where every buyer is now.
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 marketing services in a marketplace that your partners can access. Sure, you can include event services, too – events will probably be around forever. But you can offer many more modern, digital options that will benefit both you and your partners.
- What if your partners could rank at the top of search for YOUR solutions in their local geography?
- Would you like your partners to send email marketing that is consistent, brand-compliant, and timed perfectly with your own corporate campaigns?
- How about monthly partner blogs that focus on your solutions, aligned with your own marketing messages?
- Would you like your partners to be more consistent on social media while sharing your messages and driving traffic to your content on their site?
- Would you want to see partners invest in search campaigns centered around your solutions?
- What if you could update your own content on partner sites with just the click of a button?
- How about account-based marketing campaigns that uncover leads for your solutions?
And what if it was effortless for partners?
If this sounds great on the surface, you may be wondering how this will actually reduce complexity.
We know that the vast majority of reseller partners are small or medium-sized businesses. ( In the technology channel, it’s as high as 90%.) Partner management 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?
Here’s what’s different:
The services in the marketplace are centrally controlled so that the messaging, content, and deliverables always align with your brand and company objectives.
- The services are pre-approved by you. You can skip the up-front process of funds request and approval.
- 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
- 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.
- This data gives you the ability to measure and report and take control of your budget and the results.
- MDF Marketplaces work. Our experience is that utilization doubles in the first 2 periods after implementation.
Ok – But what does an MDF Marketplace cost?
In most cases, it’s not 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.
What does an MDF Marketplace look like?
The partner logs into a marketplace with their account. They select their budget level, peruse the service offerings, and select what they want for that period.
During service delivery, progress is shared with you and your partner. And at the end of the period, you both get the results. New communication goes out for the next period and partners can either renew their service or choose something new.
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 the administrative burden for themselves and their partners
- To increase partner satisfaction
- To have better analytics and visibility of results
- To improve ROI
Which services are right for your business and your partners?
An MDF Marketplace with the right combination of easy-to-find-and-select digital marketing services can ignite partner engagement and improve all of these KPIs for you.
At AscendX Digital, we can help select and provide the right set of services for each of your partner types, in a ready-to-go, centralized marketplace that’s easy to access.
Want to explore it in more detail? Contact us. We’d love to show you how it can work for you!