Market development funds (MDF) are cash or other incentives granted by vendors to channel partners and resellers of various kinds. Many MSPs leave MDF money on the table, costing them resources and valuable opportunities to build brand awareness. ChannelPro talked with a vendor, ColorTokens, which recently revamped its MDF program and a channel marketing strategist to ask how MSPs can best secure and use MDF funds. They also shared the biggest pitfalls that MSPs should avoid.
Steve Durkin
Wowing Your Prospects
Capturing the attention of prospective customers requires creativity and strategy, particularly when it comes to securing their participation in events. “Getting users to attend an event is a challenge,” said Steve Durkin, AMEA channel director for ColorTokens, a firm in the Zero Trust space that uses network microsegmentation to contain breaches and malware. “Our preferred way of meeting new customers is through an executive briefing at the CISO level.”
Durkin relies on resellers who are in the right markets and that service their ideal customers. “We’ll help with our marketing expertise and dollars to develop clients for both of us.”
But Durkin understands the need for special events to pull in executives. He’s funded getaway-style meetings at an indoor golf center in London and onboard the HMS Belfast, a British Town-class light cruiser that was active in the D-Day invasion in World War II, as two examples. “We use our funds to prime the pump. We help set up the events, create and send invitations, and more. If we spend perhaps $100,000, we expect to get five million dollars in the pipeline,” he added.
Crafting a Winning Proposal
Amy Bailey
To successfully receive MDF for an event, a lot of prep work is required. So said Amy Bailey, owner of Unusually Unusual Consulting. Your MDF proposal needs to explain the progression from the event to the follow up, prospect nurturing, and ultimately the sale. “You have to prove what’s in it for the vendor, so you need a plan. Golf can be a great experience or a boondoggle.”
Bailey reminds her clients that vendors make a variety of great content available through their MDF managers. “It’s a light lift for them to get you content pieces, often even customized for you, including a three-step email sequence for a client,” she added. Some vendors may be willing to offer website development help if you’re willing to focus a section of the site on vendor and use their marketing language.
Bailey works with clients to explain the requirements for many MDF proposals. “There are rules and regulations to be aware of, such as compliance rules and GDPR requirements, such as true opt-in when turning over mailing lists of prospects.” Verify all the paperwork details, such as timelines for invoice submission and rules for using vendor logos. “Ask your vendor contact for a branding guide,” advised Bailey. “This is not the place to ask forgiveness rather than permission.”
Mike Bloomfield
Along with the golf meetings and naval museums, Durkin and ColorTokens are enabling new technology on their partner portal, deal registration, and tracking revenue to be able to get a more systematic approach to MDF success. “It’s all about giving partners access to our MDF process, and ways to review with partners the effectiveness of our spend,” said Durkin.
Be Creative and Find the Wins
Mike Bloomfield, president geek of the Staten Island-based MSP Tekie Geek, uses MDF for traditional lunch-and-learns and other meetings. But getting creative with vendor funds can be extremely effective, according to Bloomfield.
For example, five years ago, Datto gave Tekie Geek $3,000 to mail potatoes to 100 prospects. Bloomfield’s wrote his pitch, “Be a couch potato and let Tekie Geek handle IT,” on each potato. He added a sticker saying, “Not for consumption,” and included a return postcard.
A week later, his team followed up with a traditional swag box with goodies and brochures. He immediately signed two clients that are still with him today. In fact, prospects still ask him about the potatoes today, Bloomfield admitted. “I wouldn’t have spent my own money on that campaign, but it worked well.”
For Bailey, the key for MSPs is to think of this type of project as a true partnership. “Don’t ask for money from a vendor before you sell something, and don’t adopt a ‘gimme’ attitude. It must be good for you and good for them.”
Featured image: iStock
