- Creating an indirect sales channel is one of the most efficient ways for vendors to market newly created start-up businesses or for a running business to promote a new product or service. So, as more of these vendors come to market, MSPs, Value Added Re-sellers, and Cloud Service Providers need to be on the same page to expand. Marketing a business is expensive, but if you align with a vendor with forward-thinking vendors, then you can use MDF funds to benefit your marketing plan. Let us look at MDF and Co-Op marketing and how to build the right practices that may benefit your MSP marketing plan.
Market Development Funds
MDFs are in an indirect sales channel in which funds are created by a brand or manufacturer to help VARS, resellers, distributors, and other affiliates to create awareness of the brand and sell its products. These are funds issued in advance. MDFs go well with markets where the number of sales is not the best indicator of how some funds should be rewarded.
Co-op Marketing Funds
These are funds earned based on the percentage of sales, rewarding and recognizing those who are performing at a high level. Co-op marketing funds are usually better for partners that consistently distribute in large amounts and allow partners to plan for the long-term.
Best Practices and How to Take Advantage of MDF and Co-Op Marketing
Business would benefit from using excess MDF and co-op funds to sell their brand online through social media and a larger internet presence. Here are some strategies to use in order to succeed:
Marketing should be a joint process, so being able to customize marketing methods, materials, and messaging in accordance with your channel partners is important. Channel partners usually have a good relationship with their customers and may be able to give advice and insights into what works the best. This involves having a collaborative spirit and listening to others for the best decision.
Easy and Understandable
It is important in your partnership to have program guidelines that are easy to understand. It may not matter the number of presentations, promises of money, and templates you use because if they are difficult to navigate, then partners may not take advantage of it and can ultimately slow down your sales.
Balance of Business and Education
Successful MSP marketing incorporates the tough but necessary balance of educating potential customers on how your service or product themselves and staying competitive with other companies. Consumers should see the number of benefits that they can get from you and understand that you are their best choice. Devoting co-op and marketing funds to create eBooks, informative content, and blog posts all teach potential customers about your service and products.
Gaining Knowledge of Who You are Selling to
One of the best decisions you can make with excess funds for MDP and co-op marketing is to learn about how to appeal to the customers. Your company should create content that attracts the type of customer you want, but that takes time and effort. Your marketing team should spend time on learning how to cater to your market. This may benefit greatly with a new influx of potential customers.
Making the most of your MSP marketing is not easy. With joint planning, hard work, and the ability to be open to new ideas, MDF and co-op marketing can benefit everyone involved. Working with the wrong vendors can prove costly for you and your marketing budgets. Therefore, it is important to know about MDF and Co-op marketing and how it can affect your company, for it can be driving force that takes your business to the next level.