Microsoft partner incentives

What US Microsoft partners get paid for, where the money comes from and how to unlock more of it - without losing the plot on customer outcomes.

Short answer

What are Microsoft partner incentives?

Microsoft partner incentives are the earnings a partner receives for driving Microsoft customer outcomes: rebates on qualifying revenue, co-op funds accrued from that revenue, MDF allocated against an agreed go-to-market plan, and time-bound engagement fees for priority motions such as Copilot, Security and Azure migration.

What you can earn is set by your Solutions Partner designations and Partner Capability Score. What you actually collect is set by planning - eligible motions chosen early, campaigns built to the customer qualification, and claim evidence captured as you go.

Microsoft partner incentives, explained for US partners

Microsoft Commerce Incentives (MCI) is the umbrella program that pays US partners for driving customer outcomes across Microsoft's solution areas - Modern Work, Business Applications, Digital & App Innovation, Data & AI, Infrastructure and Security.

Incentives split broadly into two buckets: rebates earned on qualifying revenue, and co-op / MDF funds you reinvest into marketing and customer-facing activity. Both are tied to your Solutions Partner designations and Partner Capability Score (PCS).

Where the money actually comes from

1

Rebates

A percentage of qualifying revenue paid back to you, varied by motion (acquisition, usage, retention) and solution area.

2

Co-op funds

An accrued pool tied to revenue you can spend back into approved marketing activity.

3

MDF

Proposal-based funds Microsoft allocates against a specific go-to-market plan you commit to deliver.

4

Engagement-specific incentives

Time-bound programs for priority motions - Copilot, Security, Sovereign Cloud, Azure migrations, ISV co-sell.

What unlocks more incentives

  • Solutions Partner designations in the areas you want to grow.
  • A healthy Partner Capability Score across Performance, Skilling and Customer Success.
  • Active co-sell motions and customer wins logged in Partner Center.
  • A funded-growth plan Microsoft can see, not just hear about.
  • A relationship with Partner Success or the local Microsoft team.
FAQs

Frequently asked questions

What are Microsoft partner incentives?

Payments and funds Microsoft gives partners for driving customer outcomes - rebates on qualifying revenue, plus co-op funds and MDF reinvested into marketing and customer activity.

How do US partners qualify for incentives?

By holding Solutions Partner designations, maintaining Partner Capability Score thresholds and transacting against eligible motions inside Microsoft Commerce Incentives (MCI).

What is the difference between rebates and co-op?

Rebates are paid to you as earnings on qualifying revenue. Co-op funds accrue into a pool you spend back into approved marketing and customer-facing activity.

Are incentives the same across all Microsoft solution areas?

No. Rates, eligible motions and earning windows vary by solution area and by time-bound engagement-specific incentives Microsoft runs each fiscal year.

How do I find out what incentives my company is eligible for?

Partner Center shows your earnings, but the strategic view comes from mapping your designations, motions and customer base against the current MCI guide and active engagement-specific incentives.