Author: Steve Caunce
Date: August 2025
Introduction
For more than two decades, I’ve worked at the intersection of sales, marketing, and partner ecosystems across the tech sector in New Zealand. From rolling out multi-vendor go-to-market campaigns to navigating the highs and lows of co-funded initiatives, one truth has become crystal clear: most IT services businesses are sitting on a gold mine of untapped value in their MDF allocations — many don’t realise they have it and those that do often don’t take full advantage of it.
In nearly every role I’ve held — on both the vendor side and on the partner side — I’ve seen talented teams scramble to execute campaigns that were rushed, compliance-driven, and disconnected from revenue goals. Meanwhile, funding that could’ve fuelled pipeline sits idle, quarter after quarter.
This blog is the one I wish had existed years ago when I first started managing partner marketing budgets. It unpacks the real cost of underused MDF and how to spot the early warning signs before opportunity walks out the door — or worse, into a competitor’s funnel.
— Steven Caunce
Senior B2B Marketing & GTM Strategist
Outline
Most partner-led businesses are overlooking a goldmine in unused Market Development Funds (MDF) – not because funds aren’t available, but because execution is broken.
- Learn why over 60% of Market Development Funds (MDF) go unused each quarter by partner-led IT service providers.
- Understand the real cost of unclaimed MDF, including missed pipeline growth and weakened vendor relationships.
- Discover the structural reasons MDF strategies fail, from administrative overload to lack of ROI measurement.
- Identify the 5 warning signs your MDF strategy is leaking pipeline.
- See how leading IT service and consulting firms are turning MDF from a compliance task into a competitive advantage.
What we are seeing
You’re not imagining it – MDF feels harder than it should be. The red tape. The scramble to justify spend. The last minute requests to come up with a campaign at the end of a quarter. The uncertainty around ROI.
But here’s the truth: most of your competitors are in the same boat. The smart ones? They’ve stopped seeing MDF as a compliance task and started treating it as a strategic growth lever. And that shift is making a significant difference to their pipeline.
In this article, we’re unpacking why 60% of MDF goes unused every quarter, what it’s really costing your business, and how to recognise if your MDF strategy is quietly leaking growth.
The State of MDF Underutilisation in 2025
If you’re working in a partner-led IT services, SaaS, or consulting business, chances are you’ve been offered MDF from a vendor like Microsoft, Cisco, Fortinet, or Veeam. Yet globally, more than 60% of these funds go unused every quarter (Zinfi Technologies).
This isn’t a new problem – but it is getting worse. As channel ecosystems become more crowded and vendors tighten scrutiny on ROI, partners who fail to use or prove the value of MDF risk being left behind.
Why MDF Often Feels Like ‘Just More Admin’
Let’s be honest. For many partner managers and marketing leads, MDF feels like a chore:
- The application process is complex and inconsistent.
- Internal stakeholders see MDF as “someone else’s job”.
- The campaign planning is often last-minute and reactive.
- Funding cycles typically look a quarter ahead so planning is very short term focused.
- Claim cycles are manual and painfully slow with the partner very often waiting months for payment.
- The claim process often feels like an insurance claim with compliance teams almost looking for a reason not to pay out.
- There’s limited visibility into ROI.
Sound familiar? You’re not alone. These structural issues are what lead many businesses to forgo claiming MDF altogether — or worse, invest effort into campaigns that deliver zero measurable impact.
What That 60% Really Means for Lost Pipeline
Leaving MDF unused is not just a missed marketing opportunity – it’s a missed revenue event.
Let’s do the math:
- If your business is allocated $50,000 in MDF per quarter across multiple vendors , and you’re only using 40% of it…
- That’s $30,000 per quarter – or $120,000 per year – going to waste.
- Even at a modest 3x pipeline-to-MDF ratio, that’s $360,000 in potential pipeline left unrealised.
Worse still, it sends a signal to your vendors that:
- You may not value their investment,
- You struggle with execution,
- You are not their partner of choice in New Zealand.
- You’re less likely to deliver impact compared to other partners.
This makes it less likely you’ll receive future allocations, co-marketing opportunities, or elevated partner status.
How Other Companies Are Quietly Turning MDF Into Growth
Some organisations are starting to flip the narrative:
- Instead of treating MDF as a tick-box exercise, they’re building repeatable, co-branded go-to-market motions.
- They’re aligning MDF initiatives with sales goals and tracking real ROI.
- They’re using automation and AI-enabled reporting to streamline claim cycles and prove value.
- They’re engaging expert support to manage strategy, execution, and vendor relationships across the full lifecycle.
The result? A consistent flow of net-new pipeline, stronger vendor partnerships, and a seat at the table for future joint growth initiatives.
These organisations aren’t necessarily bigger — they’re just more deliberate.
First Signs You May Have an MDF Problem
If you’re unsure whether your MDF approach is costing you growth, here are five early warning signs:
- You’re unsure how much MDF you have access to each quarter.
Lack of visibility often means missed opportunities. - Campaigns are built around funding windows, not sales strategy.
If activity feels rushed or reactive, it likely isn’t aligned with your business outcomes. - Sales teams don’t know (or care) about your MDF campaigns.
If there’s no GTM alignment, pipeline outcomes will be weak. - You spend more time preparing claims than planning campaigns.
Administrative overload signals a broken process. - You can’t point to a single campaign that directly influenced pipeline.
Without ROI proof, you’re flying blind — and your vendors know it.
So What’s Really the Problem?
It’s not a lack of funding. It’s not a lack of opportunity. It’s a lack of strategy and operational execution.
The market has moved. Vendors are doubling down on partners who prove value. Competitors are building repeatable MDF motions. And the expectations around measurable ROI are rising.
The problem is systemic, but that also means the solution is structural. The companies winning in this space aren’t just spending MDF — they’re integrating it into their growth engine.
Next Steps
It’s time to assess whether your MDF strategy is working for you — or against you.
Review this free checklist: “5 Signs Your MDF Strategy Is Leaking Pipeline”
This short diagnostic will help you evaluate whether your approach to MDF is leaving growth on the table.
| Sign | What It Looks Like in Practice | Impact on Your Business |
| 1. Lack of Visibility | You don’t know the total MDF allocation available each quarter or how much has been claimed. | Missed opportunities and unspent funds left on the table. |
| 2. Reactive Campaigns | Campaigns are rushed to meet vendor deadlines rather than aligned with sales goals. | Poor pipeline conversion and wasted effort. |
| 3. Sales Disengagement | Sales teams are disconnected from MDF campaigns or don’t see how they drive revenue. | Weak pipeline impact and lack of buy-in. |
| 4. Admin Overload | More time spent on forms, claims, and compliance than on campaign planning. | Delayed execution and high internal cost. |
| 5. No ROI Evidence | You cannot clearly link MDF activity to new opportunities or sales outcomes. | Vendors reduce future allocations and pipeline stalls. |
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
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