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
