The use and offer of marketing funds from your manufacturer can be a complicated process for many partners. Here is a quick guide to introduce some of the key things you should consider and how to supplement your marketing budget effectively:

1. Understand the difference between Co-op and Demand Generation Funds. The manufacturer will offer marketing support and funding to partners through the recognised partner programme. The amount of funding you can receive is linked to your commitment to them as a partner, the level of sales you can achieve and your solution focus. Co-op funds are offered as a reward for selling and reflect a percentage of what you sell. DGF (Demand Generation Funds) are offered to selected partners on request and are often there to promote certain products and solutions into the market. Some partners can apply for both funds but we suggest that you consider what support you need first ie. How much do you want to sell and by when, and then work out how to get it funded
   
   At Markit 4 we have over 10 years of marketing fund experience and can help you through the process - from pre- approval through to claim and reporting.
2. Make the right Relationships. Working with the right Distributor and contacts within your vendor can put your business in the right place when funding is made available. Does your distributor know and understand your business as well as the vendor’s business? A good Distribution partner should be able to work with you to gain funds, and your choice should relate to the solutions and markets you serve. Marketing support from the Distributor, in addition to what is offered by the vendor is often overlooked when choosing your supplier, so we often suggest this is prioritised as part of your agreement.
3. Set clear objectives for your own business with each manufacturer before you start to work out what they want you to deliver. In our experience, resellers who have a unique proposition to market that fits the vendor’s model tend to achieve quicker and profitable growth than those who rely on the vendor to provide them with business. What is the market value for your solution with their brand behind it? What is your sales conversion rate? Work out these details and you will know how many leads you need to reach a shared goal; Invaluable when you get to the point of applying for funds!
4. Plan early and ask for funding in advance. Funding is almost always allocated ad-hoc or quarterly, and approvals can take time to come through as proposals need to go through Distribution in most cases. Think about a six month plan with quarterly funding breaks as this will demonstrate to the vendor what your long term aims are, as well as setting milestones for revenue.
5. Work with the right people! - Your agency should understand the vendor’s technical proposition, how to position it and what to avoid when gaining approvals. Involving your existing agency to work on an a new vendor campaign can work but the effort will be on you to ensure they are trained and up to speed on the technology. It is critical that they understand the brand proposition and how to represent it correctly. Any mistakes in this area can result in agreed funding being unpaid by the vendor and you won’t often get to know this until it is too late - so the right agency can really save you time, work and money in the long run!

Markit 4 provides Business and Channel Development services to clients across EMEA. We work with companies like EMC, VMware and others to offer a wide range of field marketing services and channel support. Our services include Marketing Management; Channel Development; Marketing Services; Lead Generation Programmes and Partner Recruitment. Our team have experience working with major brands across the Technology sector and beyond; providing expertise that really does deliver results!

For a more comprehensive introduction to vendor marketing funds or to discuss a specific vendor’s programme please contact us on 01327 355195 or e-mail: heather.cotter@markit4.com