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Most vendors that are selling through the channel depend on their partners to generate demand instead of just relying on leads generated by the vendors. However, the sad reality is that the channel often remains as a fulfillment arm. Despite heavy investments that many vendors have made in channel marketing\u2014particularly in automation and concierge services\u2014most partners do not use marketing development funds (MDF). In fact, our worldwide channel survey data shows as much as 60% of market development funds (MDF) are not used on a quarterly basis. In this article we explore the key reasons why.\nBefore we delve into the issues, however, let\u2019s spend a few minutes on the 40% of the cases where market development funds are claimed and used. In the majority of these cases, the funds are used by large partners who know how to navigate the MDF approval process and have a much larger bucket of funds. These tend to be large channel partners who have deep relationships with the vendors and have competencies in place to market, sell and fulfill demand. Also, these large channel partners usually have dedicated marketing resources in place to apply for funds and utilize them properly. While corruption tied to misuse of market development funds remains a major issue in the channel, with proper auditing and personnel management organizations can ensure that funds are being used appropriately. This part is not easy, but is highly necessary.\nNow let\u2019s take a look at the 60% of the cases where funds are not being claimed or used. Why is this the case? Market development funds (MDF) are available primarily for partners who have achieved a certain level of sales output. And this assumes that such partners have developed specific competencies in selling products and services for which market development funds (MDF) have been provided. However, as we noted earlier, most of the time these funds remain unused. Based on our research we have discovered a set of core barriers that prevent market development funds (MDF) from being claimed and used.\n\n\n \tPartners are not focused on selling vendors\u2019 products. Most of the time partners sell a vendor\u2019s product as an alternative to the core solution or as an add-on. This scenario is quite common in banking, insurance, finance, technology and many other sectors where partners (agents, resellers, brokers, etc.) typically represent multiple vendors in order to provide choices to their client base. This lack of primary engagement leads to partners focusing on marketing the primary solution, but skipping any marketing activities for the add-ons as a standalone initiative. In most of these cases, partners do not apply or claim for market development funds (MDF).\n \tPartners tend to focus on the short term. Most channel partners who generate less than $5 million to $10 million in annual revenue and lack dedicated marketing resources tend to focus their business activities on quarterly intervals. However, we know that effective marketing is not just about running events; it\u2019s about putting together a comprehensive, 360-degree approach tied to inbound and outbound activities over the long term. The focus on quarterly initiatives can cause partners to bypass a structured approach to marketing, thus failing to apply for market development funds (MDF).\n \tPartners do not have digital marketing expertise. Marketing has changed dramatically during the past 10 years and even more so over the past five years. In the past, B2B marketing relied heavily on telemarketing and lead generation, and B2C marketing depended heavily on advertising. However, both marketing approaches have changed\u2014primarily due to the evolution of social media, content marketing and social selling activities. In spite of the changes, most partners are not equipped properly with the appropriate tools and techniques to exploit the advantages of digital marketing. Instead, many partners tend to rely on old techniques,