Stop Missing Out on Microsoft Market Development Funds

If you're a Microsoft Partner, the only thing more confusing than the alphabet soup of acronyms (MDF, CPOR, AMM) is realizing you're leaving money on the table...a lot of money.

In the latest Voice of the Microsoft Partner, our team dropped real advice on how Partners like you can actually unlock and use Microsoft Market Development Funds (MDF).

Here’s what you really need to know and more importantly, what to do next.

First, let’s get something straight: your Partner level isn’t just a badge. It directly affects your eligibility for incentives, internal use rights, and your standing with Microsoft sellers. With legacy competencies gone, Solution Partner Designations (SPDs) are now the new baseline. 

But the real unlock? Specializations. These designations are what turn your status into actual money, whether through deployment incentives, AMM engagements, or access to deeper co-sell opportunities. Sherman didn’t mince words here: if you want to scale your partnership with Microsoft, Specializations aren't optional, they're your multiplier.

During the session, Andres Oceguera pointed out a practical, and underused, strategy for hitting SPD thresholds faster: nonprofit customers. These discounted license deals still count toward net new adds, and they’re often simpler to close. For partners who are just shy of their 70-point score, this can be the push over the edge and open doors to back-end rebates, IUR, and Co-op funds.

Once you hit that threshold, the next challenge is knowing what you’re entitled to and how to actually claim it. Most Partners don’t realize they’re earning Co-op automatically when they surpass $10K in incentive earnings. Forty percent of those earnings are allocated to your Market Development Fund. But if you don’t use them? They go away. Andres and Josh Rogers walked through how to check your current Co-op balance, what activities are eligible for reimbursement, and the key deadlines you need to know. June marks the end of the usage period for FY25 H2, meaning any unused funds are about to expire.

So, what should you be using your MDF for? The options are broader than most think. Partners can fund paid campaigns, third-party GTM assets, internal sales enablement sessions, event sponsorships, and even certification reimbursements. MDF isn’t just for enterprise-scale campaigns, it can (and should) fund day-to-day growth and skilling. Most importantly, MDF can be reinvested to help you earn even more incentives. For example, using funds to achieve a specialization or align your GTM with Microsoft sales plays doesn’t just check a box, it makes you eligible for higher rebates and increased seller engagement.

Bottom line: you’re probably earning funds you’re not claiming. And you’re likely eligible for more than you think. But the window to act is closing. FY25 usage deadlines are approaching fast, and starting October, new eligibility rules will make it even harder to earn without a 25-point Partner Capability Score. The time to maximize your current status and your Co-op dollars is right now!

Need help figuring out what you qualify for or how to make it work in your business? That’s where we come in. We’re here to help you stop leaving money on the table and start turning your Microsoft partnership into a true growth engine. 

Check out the highlights:

Watch the recording: