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JULY 2008
Making the most of JMF
Millions of dollars in joint marketing funds (JMF) are wasted every year. There are two paths that can squander this valuable resource. First, most of the waste comes when events are planned with no expected outcome, and follow-up programs are not well laid out. The other path is taken when channel partners don’t know the funds are available, and therefore budgeted money is never spent. This money either goes back into the manufacturer’s bank account, or worse, gets spent on something meaningless just so the marketing department can justify acquiring it again the next year.
Over the past five years, I have worked with many marketing departments and channel organizations that were looking for avenues where they could obtain and use marketing dollars; in ways that would yield the greatest return. Here is what you need to know to make the most of the remaining months in 2008.
"A refreshing approach to selling that challenges my day to day activities"....Jeff Gordon , Verizon Business
...a new approach to demand generation that is guaranteed to get results
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Unspent Dollars
Marketing dollars are not disbursed if resellers cannot justify spending them. Each manufacturer has an annual budget to spend on demand generation and branding for their partners. If you are not using this money, you are wasting a resource that is available to you and can effectively add dollars to your bottom line. If you are requesting them and not receiving them, it is because you are not providing justification. At the end of the fiscal year, that company will likely have dollars left over. Why didn’t they spend them with you when you requested them? It is because you were unable to show a clear path from spending this money to selling the investor’s product.
It’s a simple process. The channel manager is an influencer in this program. They are bringing their requests back to their managers to prioritize the expenditure of marketing dollars. They carry a large quota for products sold through the reseller, and then allocate their time and money where they think they will get the greatest return. If they believe it is with you, you’ll get the money. When the channel manager comes back saying they don’t have any money, what they are often saying is, “my manager did not approve the expenditure with you.” At the end of the year, you can be sure there will be millions left in JMF. The managers did have the money, they just did not have money for you.
Capturing Unspent Dollars
A solid plan is the number one thing you need to get these dollars. But there is more:
- Your level of loyalty to that provider is critical. In this market, unless you have some sort of high value offering that does not involve product, you will need to convince your partners that you are loyal to them. Align yourself with partners who are willing to invest in you and that will automatically put numbers on the bottom line.
- Planning events that drive new prospects is essential. Manufacturers are looking for incremental business more than customer appreciation. When you keep inviting the same people to every event, and they are already buying from you, the assumption is that they would have bought anyway. Why invest?
- Well planned events – don’t start with fund raising. Treat this like a new venture. Formulate a plan, know the target invite list, and why you are targeting them. Have a speaker that can generate interest. I recommend hiring someone from the outside as that will draw in new prospects. Also, have a date and venue selected. Treat this like you are going forward with or without funding.
- Leverage several non-competing partners for the greatest investment. Often there are several buckets of money managed by one partner. Some may be contributed by the marketing team, some may come from you local channel manager, while others may come from that same company but through another channel, such as your distributor.
- Sell this. It is not just another sale, so don’t make one call and quit. Prospect in the same way you would for a new client. Find out what they need that will give you an affirmative answer. Again, your contacts just want to be convinced that this program is a wise investment. If you can show results from other programs done in this way, you will have references. Use them.
Spend Wisely
The funding you receive is an investment. Treat it like an important investment in your company’s strategy, and work for the results. Here are some tips:
- The sales manager must be involved to build credibility
- Have a plan to get attendees there and manage it
- Have a formal follow-up plan in place before the event happens – share it with investors
- Track the results and report back to the investors – show a return on investment
There are many types of programs that use JMF. However, the concepts presented here will ensure that your marketing dollars are spent wisely, that you get most of the money available to you, and that you will be able to return for more funding as you move forward. Remember, it’s all about showing a strong return.
Please pass this on to anyone you know who is working to build a profitable solutions business today. Consider having David Stelzl speak at your next quarterly meeting or customer event. Create a value proposition that positions you as the expert and attracts new clients. Consider hiring a professional coach to accelerate the process.
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