Microsoft MDF, decoded for US partners.
Market Development Funds are budget Microsoft sets aside for partners to invest in demand generation tied to specific solution areas and Microsoft's July-to-June fiscal priorities. It works differently from co-op: you write a proposal in USD, wait for approval, run the program, then submit proof before Microsoft releases a dollar.
For most US Microsoft Partners, MDF is the biggest funded-marketing line on the books - and also the one that goes unclaimed most often, either because the proposal gets bounced back or because nobody keeps the receipts once the campaign wraps.
How MDF actually works for a US partner.
You'll request MDF through your Microsoft Partner Development Manager or Channel Marketing Manager, and it needs to map to a named solution area - Data & AI, Modern Work, Security, Infrastructure, Business Applications, or a specific workload push around Copilot, Azure migration, or Dynamics 365.
Proposals that actually get approved read like a business case: which fiscal priority you're supporting, which customer segment you're targeting (a regional bank, a group of hospitals, a state agency), a USD pipeline number, and the exact vehicle - not a grab-bag of tactics thrown together the week before the deadline.
Once the funds are approved, you have a fixed window to spend them and a proof-of-execution package to assemble: creative, audience reached, leads generated, pipeline tied back to the campaign.
How we run MDF for US partners
Map to Microsoft's current fiscal priority
We start with what Microsoft is actually funding this year, not the campaign your team has been wanting to run since last summer. Nail this and the rest of the proposal gets a lot easier.
Write the case your PDM can forward as-is
Named segment, named workload, a USD pipeline target, the exact vehicle, and a measurement plan that survives scrutiny further up the chain.
Run it to the letter of the approved plan
Content, media and events ship inside the approved window with UTMs and lead capture set up the way MDF reporting requires.
Package the proof before anyone asks for it
Creative, audience data, spend records, lead counts and pipeline attribution assembled ahead of the deadline, so the check actually clears.