Market Development Funds: Three Problems And Three Solutions

Three Problems That Lead to Stalled MDF Usage:

• "Use it or lose it" deadlines: According to Amazon Consulting, this is the most frequently cited complaint among VARs, who claim that they can't adequately prepare to leverage a vendor's MDF because the offers only last a quarter or, even worse, a mere 30 days.
• Stringent terms and conditions: In order to combat fraud and MDF misuse, many vendors have adopted strict rules that dictate even the smallest details of a solution provider's MDF-backed advertisement or marketing campaign. That makes it hard for resellers to develop creative efforts, and if they break the rules, they don't get reimbursed.
• Lack of vendor guidance: Some vendors are simply throwing lengthy rule books at their partners when it comes to MDF conditions and support. That won't help VARs, many of whom are inexperienced in marketing and advertising.

Three Solutions That Can Jump-start MDF Usage

• Relax the rules and deadlines: If vendors can put a little faith in their partners and give them more time and leeway with MDFs, then solution providers will have an easier time developing well-planned campaigns and effective promotions, which is good for vendors, too. And every partner's marketing plan won't look the same.
• Work together more closely: VARs have the customer relationships and insight into demand generation. Vendors have the marketing skills to pump that demand. If the two sides work closely with one another, giving reseller partners more direction on MDFs, it's a win-win situation.
• Try partner-satisfaction surveys: Amazon Consulting says many solution providers feel partner-satisfaction polls and surveys have helped them improve relations and communication with their vendor partners. Some of the more effective vendor MDF programs that Amazon Consulting has seen were helped along by such partner feedback.