This document outlines an agenda for discussing MDF and co-op programs. It defines MDF and co-op funds, explains why vendors offer them and why partners do not fully utilize the funds. It provides best practices for effective MDF/co-op programs, such as streamlining processes, improving communication and measuring effectiveness. Finally, it introduces Hawkeye's channelMDF solution for maximizing fund utilization through automated workflows and integration capabilities.

1. 18 November 2009Vaughn AustWilliam GilsingThe Basics of MDF & Co-Op Programs

2. AgendaWhy joint marketing and sales campaigns?Why do vendors fund partner marketing and sales campaigns?What are MDF and co-op funds—and how do they differ?What are best practices in MDF/co-op programs?Why do partners not fully utilize MDF and/or co-op funds?How can you measure the effectiveness of MDF/co-op programs?What are the best practices of an effective MDF/co-op program?Why hawkeye’s channelMDF solution?Why the hawkeye channelMDF solution?What tools are available to promote the channelMDF solution?2Agenda© 2009 hawkeye, all rights reserved.

3. Why do vendors fund partner marketing and sales campaigns?Joint campaigns grow business through the channel3Why joint marketing and sales campaigns?© 2009 hawkeye, all rights reserved. MDF/Co-Op SpendNearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programsPartners contribute 4% of their marketing budgets to MDF/co-op programs

4. What are MDF and co-op funds—and how do they differ?Funds differ by partner type and objectiveMarket Development Funds (MDF): distributed to partners in advance of salesIdeal for partners with a services business model who “push” products through channel; specify brand, develop markets, and grow businessCo-op (Cooperative) Funds: distributed to partners based on % of trailing salesIdeal for partners who fulfill demand and “pull” products through channel; do not specify brand or sell services© 2009 hawkeye, all rights reserved. Why joint marketing and sales campaigns?Service PartnersConsult, Design, ImplementPUSH ABILITYMixed ModelTransactions + Services“VAR”Fulfillment PartnersTransaction, VolumePULL REQUIREMENTFrom a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.4

5. Why do channel partners not fully utilize MDF/co-op funds? By some estimates, as much as 50% of all potential funds go unused 5What are best practices in MDF/co-op funds?© 2009 hawkeye, all rights reserved. Why do funds go unused?Unfamiliarity/unawareComplexities, administrative burdensProcesses that do not engender trustLong delays in approvals and paymentWhat do partners want in MDF/co-op programs?Clear processes with simple rulesSpeedy payments—30 days or lessOnline status/tracking and updatesPay claims in cash, not creditGreater flexibility for activities—trust the partner to know their customers and how to market to themVertical-friendly optionsSolution-friendly options Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows.Partners want to easily apply for funds—and receive payments quickly“Simplifying the tool is the best way. I suggest having someone who knows nothing about marketing or co-op try to work the tool and see what difficulty that person has.”–Partner

6. How can you measure the effectiveness of MDF/co-op programs?Use solid, consistent metrics to measure performance6© 2009 hawkeye, all rights reserved. What are best practices in MDF/co-op funds?

7. What are best practices in MDF/co-op programs?Eliminate complexities—and foster relationships of mutual trust7© 2009 hawkeye, all rights reserved. Make programs easy to useClear, concise program guidelines that can be downloaded, printed and savedIntegration with other systems—business planning tools, collateral buildersOffer pre-approved activities for quick deployment and pay-outs—”Campaign in a Box”Easy access to customer supportStreamline documentationDeliver a collaborative, transparent processOnline tools—to track status of approvals and payoutsOnline account statements—to view available funds and historical usage dataBe competitiveBe aware of how much your competitors are paying for similar activitiesIndustry Benchmarks Time from claim to payment—3 weeks Administrative cost / project—$20-$30 per project Program cost vs. total value—Less than 1% Fund utilization rate—12%-50% industry range What are best practices in MDF/co-op funds?

8. What are best practices in MDF/co-op programs?8© 2009 hawkeye, all rights reserved. Sell the program—to the field and partners alikeEngage channel reps in the process from the startDemonstrate the valueIncrease adoption with training, education, incentivesProactive, timely, ongoing communicationClose the loopRequire that partners estimate ROI when requesting approval for projectsMap factors to activities and use consistent values to facilitate reporting—drop-down and numerical valuesRequires that partners review and amend ROI estimates as a part of the claiming processWhat are best practices in MDF/co-op funds?

9. Why the hawkeye channelMDF solution?Maximize fund utilization—and partner satisfaction9© 2009 hawkeye, all rights reserved. Easily manage funds and approve/deny requestsHighly flexible, automated workflowOnline submission and managementSpeed time-to-paymentElectronic funds distributionSimplified compliance with tax and legal regulationsEasily track and measure program metricsSingle view of program activity status and reportsComplete, visible audit trail through integration of all functions—Finance, CAM, Partner, and AdministratorQuickly deploy the solution—worldwide Integration with your existing systemsMulti-languages, multi-currencies, local business rulesWhy the hawkeye channelMDF solution?Powered by hawkeye’s proven channelconduit platform

10. What tools are available to promote the channelMDF solution?Integrated tools to generate awareness and demand© 2009 hawkeye, all rights reserved. WebsiteData SheetWhite PaperChannel Fact SheetWhy the hawkeye channelMDF solution?… With more on the way!10

11. THANK YOU© 2009 hawkeye, all rights reserved.