MDF eligibility (who gets it, how much)
MDF eligibility should follow tier. Standard pattern: Silver tier partners are not eligible (focus their attention on first closed deals). Gold tier partners receive a quarterly cap, typically $5K-$10K. Premier tier partners have removed quarterly caps and receive an annual commitment as part of joint business planning.
The eligibility decision is binary at the tier level. Within an eligible tier, every MDF request still needs to win on its specific business case. Tier gates the floor; the request determines the dollar.
The request form (fields)
Every MDF request should be submitted on the standard form capturing:
- Partner name and tier
- Activity description (one paragraph)
- Activity type (event, paid ads, content, etc.)
- Requested MDF amount
- Total activity budget (partner contribution + requested MDF)
- Expected pipeline (named target accounts or quantified leads)
- Expected closed-won by quarter
- Measurement plan (how will we know it worked)
- Activity dates
- Reimbursement model (pre-pay vs reimbursement after proof of completion)
Requests without a measurement plan should be rejected on first submission, with feedback. Train partners to think in terms of pipeline, not events.
Approval workflow
The workflow that prevents both bottleneck and rubber-stamping: under $2K is approved by the channel manager within 5 business days. $2K-$10K requires channel marketing review within 10 business days. Over $10K requires VP channel sign-off within 15 business days.
Decisions are communicated in writing with one of: approved as requested / approved with modifications / rejected with rationale. "Rejected silently" or "approved verbally" both lead to disputes; always write the decision.
Reimbursement vs pre-pay
Two payment models, both valid:
- Reimbursement after activity. Partner pays vendors, submits proof of payment, receives reimbursement within 30-45 days. Default for established partners.
- Pre-pay. Vendor pays the activity vendor directly or wires advance to partner. Used selectively for cash-constrained partners or large up-front commitments (event sponsorships).
Both models require proof of completion: photos, attendee list, screenshots of campaign, etc. Reimbursement without proof is a budget hole.
Accountability and post-activity review
Every funded activity should have a post-activity review within 30 days of completion. The review compares promised pipeline against actual: named accounts engaged, leads delivered, opportunities sourced, deals closed. Partners with consistently weak conversion should see future MDF requests scrutinized more heavily; partners with strong ROI should be advocated for additional budget. Without this loop, MDF becomes pure cost.