Look for IT vendors that have raised investment funds. A market development fund (MDF) is a monetary or knowledge-based resource designed to assist partners or potential partners with sales and marketing efforts. It can be used as an incentive to encourage sales channel partners to meet revenue or certification goals. Here are details about how MDFs can help MSPs.
Focusing on Vendors with Capital
Narrow your list of well-funded tech vendors by those that actually have offered market development fund programs to businesses. These incentive programs may award funding to help a partner generate leads and marketing lists or pay for equipment and presentation tools for trade shows, webinars or other methods that can expand a business. It’s an alternative to draining your budget on risky marketing that may not pay off.
Each vendor has its own partner program in terms of how much money or incentives they provide. Many times the key comes down to how hard your company is willing to work to build your client base. Sometimes an IT vendor is willing to invest in your company just from your commitment to work toward attracting new leads.
The best way to attract vendors that offer market development funds is to have a parallel marketing plan that is similar to their strategy. You need to be able to explain how the funding plan you request can help the vendor increase the value of their investment. Your track record of generating ROI from seminars and other public events can increase the interest level from such investors. Trade shows are ideal, since you will be able to meet many new prospects and showcase both businesses, while someone else pays for your booth, travel and accommodations.
Replacing Vendors That Don’t Offer Incentives
Make a hard choice by considering replacing current vendors that don’t have capital or a market development fund for those on your narrowed list of vendors that are well funded and have MDF programs. The reason you don’t want to get trapped into a relationship with partners that don’t offer these incentives is that you may end up paying traditional marketing costs that put a long-term strain on your budget.
One way to gain the interest of partners is by reselling their products and services through shared marketing efforts. Here are examples of campaigns that can benefit your company with funding help from a partner that can lead to ROI:
• traditional media advertising (billboards, print)
• direct mail marketing
• development support tools (innovative hardware and software)
• signage and booth materials for conferences
• purchasing equipment to make training or demonstration videos
• certification programs to raise industry credibility
Make it your priority to push the tech tools of these vendors by either up selling them, bundling them in your MSP proposal or by just selling more managed services agreements.
Developing a Marketing Strategy Proposal
After you have successfully appeared on these vendors’ radar by selling more of their solutions in your local market, it is time to make a proposal for a funding program by telling them how you will use the money and what their anticipated ROI should be. Your proposal should be similar to a marketing plan that lays out specific details on how your request will benefit your company, your partner and your customers.
Some ideas to consider that will make your proposal more attractive can come in the form of discounts, volume rebates and even non-payment incentives that boost efficiency and productivity of both operations. Cross-promoting both businesses is a crucial factor that can solidify a partnership deal, by reselling services through bundling.
In order to maximize your chances of approval for this type of alternative funding, you must keep flexibility and vendor pain points in mind. Remember that many market development funding programs don’t work, partly due to partners not understanding the other’s business plan or goals. Try to figure out and include backup plans in the event your main objectives do not lead to immediate or long term ROI. In other words, think like a quarterback who is determined to score, based on options.
Getting Approval and Proving ROI
Once your request has been granted, make sure that you spend the money wisely so you can show an ROI to the vendor and then continue getting these marketing dollars well into the future! You will help your cause greatly by being aware of competitor pricing and including customer testimonials in your marketing, which can accelerate leads. Stay within the realm of attainable goals and be prepared to share real-time metrics with your MDF partner.
About the Author
Gar Whaley is Principal and Founder of Aligned Technology Solutions, providing IT support in Northern Virginia and Washington DC areas. Gar’s broad range of experience provides him with a valuable perspective on leveraging technology to help organizations lower costs, grow and enable innovation. He leads ATS with a passion and commitment to providing clients with phenomenal customer service combined with sound technology guidance. Prior to co-founding ATS, Gar spent several years in franchise restaurant ownership before the lure of the dot-com boom enticed him to the technology sector.