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
Rebates
A percentage of qualifying revenue paid back to you, varied by motion (acquisition, usage, retention) and solution area.
Co-op funds
An accrued pool tied to revenue you can spend back into approved marketing activity.
MDF
Proposal-based funds Microsoft allocates against a specific go-to-market plan you commit to deliver.
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.