MDF: Most partners have the opportunity to receive the funds but not all take advantage of spending them. Why is that? We spoke with a Cisco representative in charge of distributing funds and a Distributor Marketing Manager who helps partners to plan activities that MDF will cover.
Before we jump into the Q&A, let’s define Marketing Development Funds. These funds are given to partners to pay for the marketing materials and activities necessary to sell the vendors’ product or service.
Here are five key points on getting approved for funds by a Cisco representative:
1. What type of marketing activity will make you decide to give a partner funds? When it is up to me, I like to see a partner doing something out of the box. They don’t have to be the most innovative with their marketing but putting in the effort to try something that is outside of their norm will make me want to fund them over another partner. I want to see that they have put thought into their plan and are not just asking for money for the sake of asking for more money.
2. What factors are considered when deciding to give a partner additional funds on top of their quarterly MDF budget? For the last few years, Cisco has had a very big push on digital marketing. Partners who are willing to try a digital campaign or tactic are more likely to receive additional budget than those who stick to more traditional tactics like telemarketing campaigns, events or sales incentives.
3. What is the main reason marketing activities don’t get approved for MDF funds / what are some activities that will automatically make you say no to giving funds? The main reason that marketing activities don’t get approved for MDF is that they do not meet the requirements for the funding program. Partners try to submit for something that happened in the past or for a future campaign that they already paid the vendor for. Both big no-nos.
One reason that activities do not get reimbursed is that the partner is not able to provide the correct proof of performance by the deadline. Partners submit their activity and it gets approved, but then drag their feet to actually engage with a vendor and execute their plan. By the time the deadline rolls around, their proof of performance has dates that do not match the funded period or is non-existent because they still have not executed.
4. How early in advance do you recommend partner’s request funds for their marketing activities? I recommend partners ask in the current quarter for funding they want to use in the following quarter. Typically, the budgets are received in the last month of the quarter for the next quarter and are due a few weeks before the quarter ends. If I do not know what a partner is planning in the future, I have no way of requesting the funding for them. Any time during the current quarter is a great time to say, “Hey, I’m looking 3 months down the road and I want to run this campaign, do you think I can get some additional funding?” I can’t promise anything, but I can certainly request it if I know their needs.
5. In your opinion, how can partners avoid marketing funds going unspent? Partners can avoid leaving money on the table with a well thought out plan and by paying attention to proof of performance requirements early. If they know in advance what documentation will be needed for reimbursement and when it will be due, they will be ready to submit as soon as the activity is completed. Additionally, if they have a strategic plan in place early, they will be able to account for any unexpected setbacks or delays and still have time to submit for the funds.
Keeping these factors in mind, here are 5 key points that we uncovered when speaking to a Distributor Marketing Manager on how to spend funds.
1. Name a few marketing activities you’ve executed with MDF? The most common marketing activities that I execute with partners are retargeting ads, direct mailers, events and paid social media ads. These activities prove to reach the audience that partners are looking to gain as clients. I utilize IMS360 to develop retargeting and social media ads, as well as signage and collateral for events for two main reasons: partner bandwidth and agency expertise. In organizing these marketing activities, any opportunity to take tasks off the partner’s to-do list and alleviate their stress is a priority. It also helps that the creation of these tactics is second nature to the agency so they have an eye for what will or won’t work.
In terms of ROI, I encourage my partners to understand the value of custom content. Using cookie cutter manufacturer content puts partners at a disadvantage. When you have original content that is filled with messaging focused on your organization and key differentiators, your audience is automatically engaged with your story.
When it comes to event promotion, I feel that a direct mailer is a great way to engage your VIP guests. Although many people feel that an email invite is the quickest and most cost-effective way to promote an event, I believe a direct mail opens the dialogue to the audience that will be able to give you the best return on your investment. Even if 2 closed deals come out of 50 prospects receiving the mailer, the ROI is worth it.
2. What were the top marketing activities your partners used MDF towards in 2019? Events and content creation were the top two marketing activities that partners utilized MDF for. The top three types of events are lunch and learns, tradeshows and movie events. Lunch and learns are very popular because they’re quick to organize, efficiently timed and appealing to prospects.
This past year I have been encouraging my partners to invest in video content. This is something most partners don’t have in their wheelhouse but should. Not only is video content informative and impressive to share with a partner’s audience, but the video can be paused to take screen grabs to use as images too. You can take screen grabs and highlight certain points in a presentation or use as a social media campaign as well. Although video has been my go-to content this past year, I always begin my planning conversations by diving deep into why they need the content to determine what type will fit bests for their needs
3. What are the most common challenges that arise when trying to spend a partner’s funds? The biggest challenge is getting partners to approve the spending of MDF in coordination with efforts that aren’t in their original plans before receiving their funds. Often, when partners learn funding is available they want to put it towards something they originally planned or wanted to do that quarter. That doesn’t always work our perfectly. I typically advise that if a partner had a marketing activity in mind, they should use any new funds to enhance their current plans.
4. When timing is a factor, what are some time-sensitive marketing ideas that you’ve suggested to your partners? Direct mailers, door opener campaigns and paid social media ads are key marketing activities when timing is a factor. These are efficient on time because you start with a high-level overview. If they prove to attract interest, then you start diving deeper and giving more detail in your next activity. But to begin your efforts, these are great activities. I also recommend using existing collateral and making updates where needed. This is not only beneficial for timing purposes but allows you to put your funds towards new activities, while repurposing existing content.
If my clients have already worked with IMS360 in the past, their refresh package is the perfect way to bring existing content back to life.
5. How was IMS360 able to help you execute or drive marketing activities to fit your budget and timeline? Working with IMS360 is a unique experience for my partners. Greg, the Director of Agency Services at IMS360 has been working in the IT industry for 10 years and his knowledge of technology and ability to articulate key features that set partners apart from their competition is something no other agency can provide. He dives deeper than the “we’ve been in business for X years,” “we are a gold partner”, etc. Of course, these are important achievements, but Greg knows which questions to ask in order to create a relevant and engaging story for his clients.
Bringing in the IMS360 team to execute marketing activities is a great way to give your collateral a fresh perspective and voice. Aside from being industry experts, they set very realistic timing expectations that with the proper planning, can met your budget and timeline requirements.
We hope this provided you with some insight into new marketing activities you can recommend to your partners. Always remember, IMS360 can be a resource in your tool belt to help you create content for exceptional campaigns.
If you’d like more insight, just email Greg (ghammer@ims360group.com) to schedule some time to chat. Never let another quarter’s MDF go unspent!
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