Microsoft Co-op guidelines explained (FY27)

Microsoft Co-op is marketing money Microsoft Partners earn through the Microsoft Commerce Incentive (MCI) programme. Once incentive earnings pass $10,000 USD in a half, part becomes Co-op. You spend it on pre-approved marketing, skilling or market development activity, prove it happened, then claim reimbursement in Partner Center. Unused Co-op funds expire - they don't roll over.

Microsoft Co-op guidelines in one paragraph

Microsoft Co-op is marketing money Microsoft Partners earn through the Microsoft Commerce Incentive (MCI) programme. Once incentive earnings pass $10,000 USD in a half, part becomes Co-op. You spend it on pre-approved marketing, skilling or market development activity, prove it happened, then claim reimbursement in Partner Center. Unused Co-op funds expire - they don't roll over.

This page is a plain-English summary of the FY27 Co-op guidelines, last updated 14 October 2026. Microsoft publishes the official rules in Partner Center and the Co-op guide for each fiscal year, so always check your own allocation and the current guide before you commit spend. We're a marketing agency, not Microsoft, and the rules below are our reading of them.

How the Co-op process works

  1. 1

    Earn

    Eligible incentives

    Co-op accrues from qualifying Microsoft revenue, so check your balance and expiry date in Partner Center.

  2. 2

    Plan

    Choose activity

    Pick eligible activities that match a real commercial goal, then get the activity approved before you start.

  3. 3

    Execute

    Run campaign

    Deliver the approved activity on time, with Microsoft co-branding where it's required.

  4. 4

    Evidence

    Prove delivery

    Collect proof of execution as you go - assets, audience reports, invoices and results.

  5. 5

    Claim

    Seek approval

    Submit your claim with the evidence attached before the deadline so the funds are released.

Key Co-op numbers at a glance

RuleWhat it means
Earning thresholdCo-op kicks in once your MCI incentive earnings pass $10,000 USD in a half. Earnings then split between rebate and Co-op.
Usage periodFunds are allocated per half of Microsoft's July-June fiscal year and must be used within that period.
Grace periodYou get 45 days after the usage period ends to submit claims. After that, unclaimed funds are forfeited.
RolloverNone. Unspent Co-op doesn't carry into the next half.
ReimbursementMicrosoft typically pays roughly 60 days after it assesses an approved claim.
Pre-approvalActivities should be planned and approved in Partner Center before the spend happens.
Proof of executionEvery claim needs evidence the activity ran as approved, plus itemised invoices.

What you can and can't spend Co-op on

Usually eligibleUsually not eligible
Marketing agency campaigns and retainers that promote Microsoft solutionsMarketing that doesn't feature or support Microsoft solutions
Paid media as part of a multi-touch campaignInternal staff salaries and general overheads
Content, landing pages, email and webinarsActivity that ran before it was approved
Events aimed at net-new Microsoft businessSpend you can't evidence with invoices and proof of execution
Third-party training for your teams or customers on Microsoft solutionsGifts, hospitality or anything outside the published categories

What changed for FY27

The biggest FY27 change is the multi-touch campaign. A multi-touch campaign means paid media plus at least two other eligible activities, such as a landing page, email, webinar or blogs, all working towards the same goal. Standalone tactics are harder to justify than joined-up campaigns.

Microsoft's FY27 direction also leans heavily into AI, security and cloud, so activity that supports those priorities tends to be easier to plan and defend. If you're unsure what qualifies, prioritise the activities named in the current guide and keep the evidence trail tidy from day one.

Common reasons Co-op claims get rejected

1

Spend before approval

The activity started before it was approved, so it can't be reimbursed.

2

Weak proof of execution

Screenshots are missing, Microsoft co-branding isn't visible, or the evidence doesn't match the approved plan.

3

Invoices that don't map

Supplier invoices are bundled or vague, so Microsoft can't tie the cost to the activity.

4

Missed deadline

The claim lands after the 45-day grace period, and the funds are gone.

How Resultful helps

We help Microsoft Partners plan Co-op-eligible marketing, run the campaigns and package the evidence so your claim is straightforward. You stay in control of Partner Center and submit the claim yourself - we focus on the marketing and the proof. Most partners come to us with funds about to expire and want a campaign live within weeks, which is what our Spend your Co-op programme is built for.

FAQs

Frequently asked questions

What are the Microsoft Co-op guidelines?

Microsoft Co-op is marketing money Microsoft Partners earn through the Microsoft Commerce Incentive (MCI) programme. Once incentive earnings pass $10,000 USD in a half, part becomes Co-op. You spend it on pre-approved marketing, skilling or market development activity, prove it happened, then claim reimbursement in Partner Center. Unused Co-op funds expire - they don't roll over.

How much do you need to earn to get Co-op?

Co-op applies once your Microsoft Commerce Incentive earnings pass $10,000 USD in a half. Above that, earnings split between rebate and Co-op.

Do Microsoft Co-op funds roll over?

No. Co-op is allocated per half of Microsoft's fiscal year. You have a 45-day grace period after the usage period to claim, then unused funds are forfeited.

What is a multi-touch campaign in FY27?

Paid media plus at least two other eligible activities, such as a landing page, email, webinar or blogs, working towards one campaign goal.

How long does Microsoft take to pay a Co-op claim?

Typically around 60 days after Microsoft assesses an approved claim.

What proof of execution does Microsoft need?

Evidence the activity ran as approved - final assets with co-branding, audience or delivery reports, results and itemised invoices that map to the activity.

Can I use Co-op to pay a marketing agency?

Yes. Agency-delivered campaigns and retainers that promote Microsoft solutions are a common use of Co-op, as long as the activity fits the programme categories and is approved first.