Market Development Funds (MDF) are one of the most underutilised growth tools available to B2B technology companies. In many cases, they are treated as last-minute budget top-ups, or worse, left untouched altogether.
When used well, MDF can do more than fund a one-off campaign. It can help drive repeatable pipeline, support co-marketing efforts that vendors actually care about, and strengthen your position as a partner worth investing in. The key is approaching MDF with the same level of strategic thinking you apply to your own go-to-market efforts.
Why MDF often goes unused
Despite being widely available, MDF is often underutilised, not because businesses do not see the value but because the path to using it effectively is unclear. Internal teams are stretched thin and focused on day-to-day execution, with limited time to plan and apply for funding. In many cases, there is confusion about what activities qualify, how to get approval, and what metrics need to be reported back. Additionally, there is often no clear owner of the MDF process. It sits somewhere between marketing, sales, and vendor management, yet it is owned by none. As a result, opportunities for strategic co-marketing pass by, and businesses miss out on the chance to drive growth with someone else’s budget.
Vendors want you to use MDF, strategically
Vendors are not looking to simply distribute budget. They are investing in partners who can demonstrate alignment with their objectives and deliver measurable outcomes. MDF exists to support activities that drive awareness, generate demand, or influence pipeline within the vendor’s target markets. The more structured and strategic your approach, the more likely you are to secure funding, and continue receiving it. Vendors want to work with partners who can execute well, report clearly, and show impact. When you approach MDF with a well-considered plan supported by defined metrics and a clear path to market, it positions you as a reliable, results-driven partner. That makes future approvals faster and funding easier to access.
The hidden cost of treating MDF as ad-hoc
When MDF is used reactively, allocated to disconnected campaigns or spent to meet a deadline, the commercial return is often limited. These fragmented efforts may generate some activity, but they rarely contribute meaningfully to pipeline or business growth. Worse, they make it difficult to demonstrate ROI, which reduces the likelihood of future funding.
Without a repeatable structure, each MDF cycle becomes a scramble to plan, execute, and report, usually without the time or focus required to do any of it well. Over time, this erodes both internal confidence in the value of MDF and vendor confidence in your ability to deliver outcomes. The opportunity is not just the funding itself, but the ability to turn that funding into sustained, strategic marketing motion.
What high-performing MDF usage looks like
The partners who consistently secure MDF are not necessarily the largest or most resourced. They are the ones who bring structure, clarity, and commercial intent to the process. High-performing MDF usage is marked by forward planning, alignment with vendor priorities, and the ability to demonstrate how marketing activity supports shared business objectives.
These partners come to vendors with a clear idea of what they want to run, why it matters, and how success will be measured. They are able to show past results, outline expected outcomes, and connect each campaign to the broader sales motion. This level of preparation builds trust and simplifies approvals, positioning you as a partner worth investing in, again and again.
Conclusion
Market Development Funds are an opportunity to strengthen your vendor partnerships and scale your marketing without increasing internal costs. However, that opportunity is only realised when MDF is approached with intention. By treating MDF as a strategic growth lever rather than a once-a-year exercise, B2B companies can build credibility with vendors, unlock repeatable funding, and drive better commercial outcomes. The key is to move beyond ad-hoc activity and start thinking in terms of structure, alignment, and long-term impact.
Position your business for repeatable, vendor-funded success with Resonate
If you are looking to make better use of MDF, or want to build a marketing approach that attracts consistent vendor investment, Resonate can help. We work with B2B technology companies to design structured, high-performing campaigns that align with vendor goals and deliver measurable results. Get in touch to find out how we can support your growth strategy.
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