BROADCASTS.com

b'There\\u2019s a pot of gold waiting for IT solution providers \\u2013 and technology vendors are almost uniformly frustrated in getting their channel to make use of it. Vendors who sell through a channel or an agent network allocate between 1 and 2% of their top line revenue as Market Development Funds for their partners. However, for the most part, these Market Development Funds (MDF)\\xa0fail to realize their potential. There are many reasons, chief among which are the lack of organized ways to allocate funds, track activities and measure outcomes. As a result, MDF is notorious for yielding the worst return in comparison to other direct marketing activities. Through our years of engagement in channel programs around the world, we have observed that companies who take the following steps to get the highest return from their MDF programs.\\n\\n \\tUnderstand where MDF will be relevant \\u2013 Vendor companies provide clear directives for their direct marketing teams that, in turn, should dictate how funds are allocated across business lines, product lines and activities. Some of these direct marketing budgets may be allocated for branding, with a portion also reserved for demand generation. This is an important dividing line. In a B2B environment, MDF initiatives focused on branding rarely produce good return, until and unless a large \\u2013 possibly huge - amount of fund is allocated. The \\u2018Intel Inside\\u2019 campaign, which is based solely on generating brand awareness, is an example of the behemoth branding approach. On the other side of the line, focused demand generation activities with specific sales or lead generation goals and defined time windows are more likely to produce measurable results.\\n \\tSet a clear strategy\\xa0\\u2013 Once you have determined where to allocate your funds, you need to determine where and how you want to drive return: marketers always need to begin with an end in mind. Identification of markets, business lines, products, customer types and partner capabilities are all critical elements. The majority of vendors open their MDF programs to all partners and offer a 50 to 80% reimbursement rate for approved activities - but often the funds are wasted in unproductive activities, or unused because partners can\\u2019t get beyond the planning stage. A better approach would be to pick a tightly defined solution or product set, focus on a market area, narrow the partner qualification criteria, and work within those boundaries with proven programs that you know will drive results.\\n \\tStick to tried and tested campaigns\\xa0\\u2013 Marketing is a blend of art and science, and new campaigns often need adjustment in the initial stages. The road to success takes experimentation with campaign targets, messaging, methods and offers. Since partners are invariably time-constrained and lack marketing resources, using the partner network to experiment with new campaigns and programs is a sure way to fail. Yes, there are exceptions, but if you want to ensure return, test new programs with your direct sales teams, and only then promote successful campaigns via your indirect channel.\\n \\tSet guidelines and reporting requirements \\u2013\\xa0We often see organizations allocate MDF, roll out programs, pay out on MDF claims and then move on to other initiatives without requiring partners to report back on activities and results. An effective MDF process requires a structured plan approval followed by an equally structured proof of perform and ROI reporting process. These must be enforced if the MDF program is to succeed. Channel account management team members need to have regular reviews with the partner base to make sure partners understand that they are not only responsible for driving execution, but also are on the hook for reporting results. Otherwise, you will not be able to track ROI.\\n \\tDeploy localized, automated tools\\u2013 We are all busy, but there is way to create more time: by strategically deploying\\xa0Channel Marketing Automation\\xa0tools to reduce workload and streamline tracking and...'