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Whitepaper on Advertising through Your Channel

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Advertising and marketing to and through your channel is one of the best investments a channel executive can make to accelerate growth – as long as it is funded based on performance. There are many opportunities to spend your money on marketing, but far fewer are tied to a measurable return on investment. This whitepaper is complied from a study of best practices in channel marketing to help guide spending management, marketing performance management, and the selection and deployment of a range of branding and marketing tools to achieve measurable revenue growth and ROI.

Channel marketing funds or MDF (Market Development Funds) are typically allocated using one of three possible methods:

  1. Earned MDF: Allocation based on a percentage of sales
  2. Proposal-Based MDF: Allocation based on individual proposals or funding requests
  3. Performance-Based MDF: The best option is the allocation based on past or forecasted performance

Historically, MDF program allocations were heavily weighted to “Earned MDF” based on a percentage of sales. Over time, this method tended to yield lower ROI because it became an automatic funding method that resellers viewed as enhancing Marketing Strategymargins versus investing in advertising or demand generation. While this is still the most prevalent methodology for MDF allocation, channel marketers are doing more to ensure that these funds are actually invested in demand generation activities. Proposal-based MDF programs are growing in popularity because they provide more flexibility and allow sales executives to allocate more opportunistically. The downside of this method is that the dollars are not always focused on new demand generation and often used to reward existing customers’ past purchases. Performance-based MDF is the smallest but fastest growing percentage of channel marketing allocation methods. It allows organizations to allocate monies where they will generate the best measurable return on investment for delivering new track-able revenue. This white paper focuses on helping channel marketers implement performance- based MDF programs to generate accelerated revenue and repeatable ROI.

Download the rest of this whitepaper here to learn more about advertising to and through your channel.

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