Author: Steve Caunce
Date: August 2025
Introduction
Having spent over two decades at the intersection of B2B marketing, partner ecosystems, and sales enablement, I’ve seen firsthand how easily the potential of Market Development Funds (MDF) can slip through the cracks.
From running integrated campaigns with major vendors like Microsoft, Telstra, HP, and Cisco, to helping channel partners operationalise their go-to-market efforts, I’ve learned that MDF isn’t just a marketing lever – it’s a strategic growth asset that only works when sales and marketing move in tandem.
Too often, I’ve watched well-intentioned MDF campaigns fall short, not because of lack of effort, but because they were disconnected from the sales engine that fuels results. I wrote this article for those who suspect their MDF spend should be doing more – and want to understand where the misalignment lies.
Let’s take a look into the real cost of disconnected MDF – and how forward-thinking leaders are fixing it.
– Steven Caunce
Senior B2B Marketing & GTM Strategist
Outline
MDF can unlock millions in new pipeline – but only if sales and marketing are aligned on the outcomes. A disconnect leads to wasted funds, weak partner visibility, and missed revenue targets.
- CFO view: MDF as a sunk cost or a growth multiplier
- Breakdown of business risks: missed funding, pipeline loss, low partner ranking
- Reframing MDF as a strategic, sales-aligned asset
- Internal warning signs your MDF lifecycle is broken
- Downloadable CFO Briefing Note on “The Cost of Underutilised MDF”
Today’s Challenges
Too often, Market Development Funds (MDF) are treated as a marketing line item – a compliance exercise filed away under ‘nice to have’ or ‘use it or lose it’. But in a year where marketing budgets are being scrutinised harder than ever, this siloed approach is costing businesses far more than they realise.
Let’s be clear: MDF isn’t just a marketing issue – it’s a pipeline issue. When sales and marketing aren’t aligned around how MDF is deployed, you’re not just misfiring on campaigns – you’re leaving net-new revenue on the table, weakening your position in the vendor ecosystem, and inviting awkward questions from the CFO.
The Real-World Impact of Disconnected MDF Execution
Imagine this scenario – and it’s more common than you think:
Your marketing team rushes to put together an MDF proposal to spend end-of-quarter funds. The vendor approves it. The campaign launches, but sales weren’t involved in the planning. Leads arrive, but they don’t match the sales team’s priorities. No one follows up properly. Reporting is patchy. The vendor sees weak ROI and reduces next quarter’s allocation.
Sound familiar?
This kind of breakdown isn’t hypothetical – it’s happening in dozens of IT services firms every month. The root cause? A lack of shared ownership between sales and marketing in planning, executing, and following through on MDF campaigns.
CFO View: MDF as Sunk Cost or Growth Lever
From a financial lens, unused or misused MDF is more than just inefficiency – it’s a sunk cost that could have been converted into pipeline. With up to 60% of MDF going unclaimed every quarter (ZINFI Technologies), the opportunity cost is staggering.
For every $50,000 in unspent vendor funds, you’re potentially walking away from $500,000 in future pipeline – assuming a modest 10x ROI benchmark seen in high-performing campaigns.
Worse, even when MDF is used, if sales outcomes aren’t measured and reported, there’s no evidence of impact. From the CFO’s desk, that’s equivalent to throwing money into the void.
What Gets Missed When Sales and Marketing Don’t Sync
Disconnected MDF execution impacts the business in five critical ways:
- Lost Revenue Potential
Leads go cold, follow-up lags, and pipeline never materialises. - Lower Vendor Visibility
Vendors track MDF ROI. If your results underperform, your allocation shrinks. - Reduced Internal Trust
Executive leadership sees MDF as noise, not as a lever for growth. - Wasted Time and Resources
Marketing ends up duplicating efforts or scrambling for leads without sales input. - No Compounding Effect
Without shared learnings, every campaign starts from scratch.
Reframing MDF as a Strategic Sales-Enablement Asset
The shift is simple but profound: MDF should no longer sit solely in the marketing domain.
Instead, high-growth firms treat MDF as a joint sales and marketing asset – one that is planned together, activated in market with aligned messaging, and reviewed post-campaign with a focus on conversion metrics.
This means:
- Involving sales early when defining campaign objectives
- Aligning MDF spend with in-year revenue goals
- Building joint accountability for lead follow-up and conversion
- Presenting post-campaign ROI together to the vendor
In short, MDF becomes part of your go-to-market rhythm, not a quarterly scramble.
Internal Signs Your MDF Lifecycle Is Broken
If you’re experiencing any of the following, you likely have a sales-marketing disconnect undermining your MDF efforts:
- MDF proposals are created without input from sales
- Campaigns are measured by impressions or clicks – not pipeline
- Leads are not followed up within 48 hours
- Sales teams don’t know when an MDF campaign is running
- Vendor feedback mentions “lack of results” or “underwhelming impact”
- Quarterly planning meetings don’t include MDF performance reviews
These are more than admin issues. They are silent killers of growth momentum – draining resources, credibility, and pipeline.
What Leading Firms Are Doing Differently
High-performing IT services providers are embedding MDF governance into their sales and marketing operations.
Here’s what that looks like:
- Joint MDF Planning Workshops: Align vendor co-marketing proposals with both sales targets and customer pain points.
- Integrated Campaign Calendars: Ensure field teams are prepped with messaging and timelines.
- Pipeline Attribution Dashboards: Track lead flow from MDF activities through to closed-won revenue.
- Vendor Scorecard Reviews: Demonstrate how MDF investments impacted deal velocity, win rate, and customer acquisition.
This alignment not only increases MDF effectiveness, it strengthens vendor confidence – making it easier to secure future funding and co-marketing support.
Building a Business Case for Change
Equip your leadership team with the data they need to act. Develop a one-pager on the “The Cost of Underutilised MDF” outlining:
- The financial impact of unused MDF
- Industry benchmarks for MDF ROI
- Suggested KPIs to track
- How to reframe MDF as a growth engine
Next Steps
- Forward this article to your Head of Sales and CFO.
- Review your last three MDF campaigns and ask: “What business outcome did we target – and did we hit it?”
- Start building a shared MDF operating rhythm between Sales and Marketing.
Stay tuned for Blog 3: “Choosing an MDF Partner: What to Look For (And What to Avoid)” – where we’ll help you evaluate the providers who can own the whole MDF lifecycle with you.
About the Author
Steve Caunce is a B2B marketing strategist with over 20 years of experience driving growth through channel partnerships, co-marketing programmes, and go-to-market innovation. At Digital Pivot, he helps IT services and consulting firms unlock the full value of their vendor relationships by transforming Market Development Funds into measurable pipeline outcomes. Steven is passionate about bridging the gap between strategy and execution, and making partner marketing work harder in today’s ROI-driven environment.
Connect with Steve on LinkedIn
FAQs on how to turn MDF into a Competitive Advantage for IT Services and Consulting:
- Why 60% of MDF Goes Unused Every Quarter – And What That’s Really Costing You
- The Silent Pipeline Killer: When MDF Is Disconnected From Sales
- Choosing the right MDF Partner: What to Look For
- From Chaos to Clarity – Operationalising MDF for Growth
- Turning MDF Into a Competitive Advantage for IT Services
Ready to turn MDF into a growth engine?
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- ✅ Download a one page overview of MDF Maximiser
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