Microsoft partner incentive programmes

MCI, co-op, MDF, engagement-specific incentives, ISV Success and co-sell - what each programme pays for, who qualifies, and how to get more out of them.

Short answer

What are the Microsoft partner incentive programmes?

Microsoft partner incentive programmes are the schemes Microsoft uses to pay partners for driving customer outcomes. The main one is Microsoft Commerce Incentives (MCI), which covers rebates on qualifying revenue plus co-op funds you reinvest into marketing. Alongside it sit MDF (proposal-based market development funds), engagement-specific incentives for priority motions such as Copilot, Security and Azure migration, ISV Success for software partners, and co-sell incentives for deals sold with Microsoft sellers.

Eligibility is driven by your Solutions Partner designations, Partner Capability Score and the motions you transact. What you actually collect is driven by planning: choosing eligible activity early, building campaigns to the programme rules, and capturing proof of execution as you go.

The programmes, one by one

1

Microsoft Commerce Incentives (MCI)

The umbrella programme. Pays rebates on qualifying revenue across Modern Work, Business Applications, Digital & App Innovation, Data & AI, Infrastructure and Security, and accrues co-op funds against that revenue.

2

Co-op funds

An accrued pool, earned from revenue, that you spend on approved marketing and customer-facing activity. Claimed in Partner Center with evidence and within fixed claim windows.

3

MDF (market development funds)

Discretionary, proposal-based funds allocated by Microsoft against an agreed go-to-market plan. You pitch the plan, Microsoft allocates, you deliver and report.

4

Engagement-specific incentives

Time-bound funding for priority motions - Copilot adoption, Security, Sovereign Cloud, Azure migration and modernisation - usually tied to a defined customer engagement and outcome.

5

ISV Success

Benefits for software partners publishing to Microsoft Marketplace (previously Azure Marketplace and AppSource) - technical credits, publishing support and marketplace GTM benefits.

6

Co-sell incentives

Rewards for deals sold alongside Microsoft sellers, dependent on a co-sell-ready listing and solutions registered in Partner Center.

How partners qualify

Qualification runs through Solutions Partner designations and Partner Capability Score. Designations open the programmes relevant to that solution area; your score, built from performance, skilling and customer success, determines the level of benefit and funding you can access.

On top of that, each programme has its own rules: eligible activity types, claim windows, proof-of-execution requirements and, for MDF and engagement incentives, an approved plan agreed with your Partner Development Manager before spend starts.

How to get more out of them

  • Map your designations and motions against the current MCI guide at the start of the fiscal year, not the end.
  • Plan co-op spend across the full year so nothing expires unclaimed.
  • Agree MDF plans with your PDM early, with the outcome and reporting defined up front.
  • Build campaigns that already satisfy the evidence rules - screenshots, invoices, attendee lists, published URLs.
  • Keep co-sell listings and registered solutions current so co-sell incentives actually pay.
  • Report results back to Microsoft; funded partners who report get funded again.
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FAQs

Frequently asked questions

What are the Microsoft partner incentive programmes?

The schemes Microsoft uses to pay partners for driving customer outcomes: Microsoft Commerce Incentives (MCI) rebates, co-op funds, MDF, engagement-specific incentives, ISV Success and co-sell incentives.

What is Microsoft Commerce Incentives (MCI)?

MCI is the umbrella incentive programme. It pays rebates on qualifying revenue across Microsoft's solution areas and accrues co-op funds you can reinvest into approved marketing activity.

What is the difference between co-op funds and MDF?

Co-op funds are accrued automatically from qualifying revenue and reimburse approved marketing spend. MDF is discretionary and proposal-based - Microsoft allocates it against a go-to-market plan you agree in advance.

Who is eligible for Microsoft partner incentives?

Partners with the relevant Solutions Partner designations and a qualifying Partner Capability Score, transacting eligible motions in the solution areas covered by the programme.

Do I need a Solutions Partner designation to earn incentives?

For most MCI earnings, yes. Designations and Partner Capability Score determine which programmes and levels you can access, though some engagement-specific incentives are open more broadly.

What are engagement-specific incentives?

Time-bound funding for Microsoft priority motions such as Copilot, Security, Sovereign Cloud and Azure migration, paid for completing a defined customer engagement and evidencing the outcome.

How do I claim Microsoft co-op funds?

Run the approved activity, gather the required proof of execution, then submit the claim in Partner Center within the claim window for that earning period. Late or unevidenced claims are rejected.

What can incentive funding be spent on?

Typically demand generation, content, events, digital marketing, marketplace listing work, sales enablement and agency fees - within each programme's eligible activity list and evidence rules.

Do incentive programmes change each year?

Yes. Rates, eligible motions, solution areas and engagement incentives are reset each Microsoft fiscal year, so plans should be rebuilt against the current guide rather than last year's.

Can an agency help us use incentive funding?

Yes. Agency fees are commonly an eligible cost, and a channel-experienced agency will build campaigns to the programme rules so claims pass and results can be reported back to Microsoft.