The global IT market is expected to reach nearly 4 trillion by the end of the year. This is according to research firm IDC. This is said to be an increase of 3.7 trillion over the last few years. It is currently estimated that two-thirds of all IT products are being sold through indirect channels. This includes services, infrastructure, information, software, hardware and more. Establishing an indirect sales channel is essential for vendors, including start-up businesses and even large enterprises. So as more and more vendors come to market, there is now a bigger need than ever for distributors to bring a new solution to the market.
Channel Marketing Funds
An indirect channel program includes a lot of support for financial manufacturers or even vendors. This can be a win-win for those who want to take advantage of growing sales and this is because it gives them the chance to get new customers quickly. It also gives them the chance to unleash new products and even services onto the market. It can also strengthen brand strategies, and boost the use of any particular product. This is usually done by increasing the sale for open markets and even MSPs in general.
Why Funds Aren’t Always Used
The actual amount of MDF and even co-op funds that aren’t used every year is well over 50%. This translates to billions every single year and the channel partners that are working in the current industry are taking advantage of this. Smaller partners also do not often have a team member who is responsible for marketing or even vendor relationship management. On top of this, they are not knowledgeable about the benefits for partners or even the funds that are available for their use.
Inexperience
Many channel partners, especially those who work in smaller firms, have all come out to say that they do not have the experience when it comes to marketing and that they can’t even manage their existing customers either. A vendor who is able to approach them offering access to MDF funds then doesn’t give the partner enough time to try and establish a successful campaign
Time
Partners have to try and manage multiple relationships with vendors and this can make the whole thing overwhelming, very quickly. On top of this, you have to worry about program management and even clerical tasks. Vendors who are always making changes to their partner program are then not appreciated by those who operate in the channel.
Bureaucracy
There is a lot of paperwork to be done for the partner to complete and even receive a reimbursement for their own efforts. Partners are then rushed to try and approve a new marketing program, but then they have to wait for the new funds to become available.
So there are many problems currently being faced by vendors, and a lot of them stem from MDF funds. By understanding the cycle, a lot of people can then benefit more from it.