These two, seemingly unrelated statistics gave me pause as I prepared for a webinar last week:
1. By some industry estimates, 50% or more of all potential MDF/Co-op funds go un-used.
2. Everything Channel research reported that after reaching a high of 250,000 in 2007, the number of solution provider businesses in the North American market dropped to 200,000 in 2009. Most of the solution providers that closed up shop generated less than $1 million in annual revenue.
In this difficult time of shrinking budgets and companies going out of business, one would think that struggling SMB’s would jump at the opportunity to get free money to do marketing.
So what are the top reasons partners give as to why MDF funds go unused?
• Complexities, administrative burden
• Long delays in approvals and payment
In addition, most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows.
Because unused MDF Funds equal lost opportunities for additional business, try the following to increase utilization. Call partners that are not using funds and offer them a choice of several pre-packaged, pre-approved campaign that will utilize funds that you have already decided that the partner qualifies for.
Who couldn’t say yes?
Pitch here :) - hawkeye has recently added a service to its portfolio to enable vendors to increase utilization of funds thru a combination of direct awareness outreach and pre-packaged campaigns.