For many MSPs and system integrators, marketing sits in an uncomfortable space. Everyone agrees it is important, but when margins are tight and delivery work always comes first, marketing budgets are often constrained, inconsistent, or cut entirely. The irony is that many IT businesses are already entitled to marketing funding; they are just not accessing it.
Across the channel, vendors and distributors allocate millions of dollars every year to co-marketing initiatives designed to help partners generate demand. These funds, often referred to as Market Development Funds (MDF), exist specifically to offset marketing costs for partners. Yet in the small- to mid-sized IT services market, they remain significantly underutilised.
When used well, co-marketing funds can dramatically reduce out-of-pocket marketing spend while improving campaign quality, discipline, and outcomes. The challenge is not availability of funding; it is knowing how to access it and how to use it effectively.
Vendors and distributors do not provide MDF out of generosity. They do it because partner-led demand generation is one of the most effective ways to grow market share. When an IT business promotes a solution to its customer base, the message is trusted, targeted, and far more likely to convert than broad advertising.
Technology vendors such as Microsoft and cloud distributors like Pax8, Ingram Micro, and Software One want partners who actively create pipelines. To encourage this behaviour, they allocate budget to campaigns that promote products, expand usage, and acquire new customers.
From the vendor’s perspective, helping a partner run a webinar, event, or digital campaign is often a better return on investment than spending the same money on generic advertising that never reaches the right audience.
Despite the clear benefits, many IT businesses never tap into co-marketing funds. Some assume MDF is reserved for large partners with dedicated marketing teams. Others are put off by the perception that the process is complex, slow, or bureaucratic. In many cases, businesses simply do not ask, or they ask too late, after a campaign has already run.
Another common issue is the lack of a defined marketing plan. Without a clear campaign idea, timeline, or objective, it becomes difficult to approach vendors with confidence. As a result, MSPs and IT service businesses self-fund marketing activities that could have been partially or fully subsidised.
The reality is that vendors are often far more flexible than expected. Most would prefer to fund a small, well-executed campaign that actually runs than approve a large, ambitious plan that never leaves the planning stage.
One of the biggest misconceptions about MDF is that it only applies to large events or major brand campaigns. In practice, co-marketing funds can be used for a wide range of everyday marketing activities, provided the vendor’s solution is clearly promoted and the campaign has a demand-generation focus.
Educational webinars, customer workshops, lunch-and-learn sessions, paid LinkedIn or Google advertising, co-branded landing pages, email campaigns, video content, and customer case studies are all commonly approved activities. Even modest initiatives, such as promoting a security assessment offer tied to a specific vendor solution, can qualify for funding.
The key requirement is alignment. Vendors want to see that the activity promotes their product, targets the right audience, and has a clear intention to generate leads or opportunities.
The most successful MSPs treat MDF as a partnership rather than a reimbursement process. Instead of running a campaign and hoping it qualifies afterwards, they engage their distributor or vendor early and shape the activity together.
A good starting point is a simple, focused campaign idea. Rather than trying to promote multiple solutions at once, it is far more effective to centre the campaign around a single problem and a single vendor solution. This makes approval easier and messaging clearer.
Engaging your distributor partner manager early is critical. They can confirm what funding is available, advise on what types of activities are most likely to be approved, and often provide templates, speakers, or pre-approved content that reduces effort on your side. In many cases, they will also help you navigate the approval process and set expectations around reporting.
Budgets should be clear and realistic. Vendors do not need complex spreadsheets; they want to understand what they are funding and why. Advertising spend, event costs, content creation, and platform fees should be outlined simply and transparently.
After the campaign runs, basic reporting goes a long way. Even lightweight metrics such as registrations, attendance, leads generated, and follow-up opportunities are usually sufficient. Businesses that consistently report outcomes build credibility and find it much easier to access future funding.
Beyond the financial benefit, co-marketing funds often improve how MSPs and IT businesses approach marketing altogether. Knowing that a campaign needs to be planned, approved, and reported forces a level of discipline that many smaller businesses struggle to maintain.
Over time, MSPs and SIs that regularly use MDFs tend to move away from ad hoc marketing and towards repeatable campaigns with clear objectives. Sales and marketing alignment improves, messaging becomes more consistent, and marketing starts to feel less like an expense and more like an investment.
In many cases, the structure imposed by co-marketing programmes is what helps turn marketing into a predictable growth engine.
For IT businesses new to co-marketing, the best approach is to start small. Choose your most strategic vendor, often the one generating the most revenue today. Ask your distributor what MDF is available in the current quarter and what types of campaigns they are keen to support.
From there, propose one campaign that you can realistically execute within 30 to 45 days. Focus on education, keep the message simple, and make sure follow-up is planned before the campaign launches. Once you have successfully run one funded activity, accessing future MDFs becomes significantly easier.
Marketing does not need to be a constant drain on cash flow. If you are already selling vendor solutions, you are part of an ecosystem that is willing and eager to help fund your growth.
The MSPs and system integrators that win are not necessarily the ones spending the most on marketing but the ones who understand how to leverage the support available to them. Co-marketing funds exist to be used. The only real cost is leaving them on the table.