Let's talk about money left on the table. Specifically, over $1 billion of it.
That's how much Microsoft partners are missing out on each year by not fully leveraging available incentives.
The Billion-Dollar Secret Hiding in Plain Sight
Microsoft invests a massive amount into its partner ecosystem. We're talking billions of dollars annually. Yet a huge chunk of that goes unclaimed.
Why? It boils down to three key factors:
- Many partners simply aren't aware of all the programs available.
- There's often a lack of alignment within organizations to capitalize on these opportunities.
- The operational hurdles in claiming and tracking rewards can be daunting
In this blog, we'll dive into how you can not leave this money on the table and stay on top of each and every opportunity to maximize your Microsoft partner benefits.
FY25: A Game-Changing Year for Microsoft Partner Incentives
The incentive landscape is evolving in some major ways. Here's what you need to know:
- Expanded Eligibility: Incentives are available throughout the year (July 1 - June 30) to give you more flexibility to align with your business cycles.
- Solution-Aligned Engagements: Tightening the link between funded engagements and specific solution plays to give you more targeted opportunities to deliver value to your customers.
- Consistent Access Across Markets: Caps on the number of workshops eligible for credit per partner in each country.
- AI Takes Center Stage: New incentives around AI-powered solutions, especially Copilot for Microsoft 365. If you're not already building expertise here, now's the time.
- Security Consolidation Push: There's a big emphasis on helping customers consolidate their security stack with Microsoft's integrated solutions. This is a prime area to focus on for both technical skills and marketing efforts.
Deep Dive into Key Areas
Let's break it down by solution area:
Business Application
Azure
Azure remains a critical focus for Microsoft
Modern Work
The Modern Work solution area is seeing significant changes, with a strong emphasis on AI and productivity.
Security
Microsoft is doubling down on its integrated security approach, with a focus on helping customers consolidate their security stack with Microsoft's
Cracking the Code: Maximizing Your Microsoft Incentive Earnings
Now, let's get to the heart of the matter – how can you make sure you're not missing out on any money? Here are some strategies that really work:
The Win Formula
First things first — let's talk about the Win Formula.
It's the backbone of your go-to-market strategy. Think of it as the blueprint for your sales success, mapping out how you'll engage customers, identify resource gaps, and leverage Microsoft's investments to your advantage.
According to Brent Combest Partners, who have embraced this approach, they have seen remarkable results, with some reporting annual Microsoft revenue growth exceeding 50%.
The important thing to remember here is – one size doesn't fit all. You might need multiple Win Formulas depending on your solutions and target audiences.
For instance, selling Microsoft 365 Copilot to educators will look vastly different from pitching Converged Communications to healthcare providers. Each scenario deserves its own tailored approach.
The Essential Elements to Build Your Win Formula:
- Customer Journey Mapping: Start by clearly defining your customer's journey, from the moment they become aware of your product to the point of purchase.
The Microsoft Customer Engagement Methodology (MCEM) is a fantastic tool for this.
- Execution Tactics & Exit Criteria: For each stage of the journey, outline specific actions that move the buyer forward. We're talking everything from initial demand generation to in-depth assessments and proof of concepts.
The key is balance - you want to optimize conversion rates without blowing your budget on sales and admin costs.
- Microsoft Program Utilization: This is where the real work begins. Microsoft offers a huge variety of investments and incentives to help you at every step of the customer journey. Your task is to figure out how to use these programs effectively in your own plan.
Pro tip: if a program sticks around year after year, it's a good bet that successful partners are finding ways to benefit from it.
- Quantifying Desired Outcomes: Set concrete goals for each tactic and stage.
- How many marketing-qualified leads are you aiming for?
- What percentage of prospects engaging in assessments should convert to sales?
- What's your target for average revenue per user (ARPU)?
These specific goals will guide your sales strategies and help you measure success.
- Defining Required Investments: Let's talk money. Some activities will be covered by Microsoft programs, but others will come out of your pocket. Don't forget to factor in less obvious costs like additional staffing and skill development.
- Assigning Ownership: Last but not least, assign clear ownership for each element of your Win Formula. We recommend having senior leaders oversee each sales stage, with their direct reports managing tactical elements.
Accountability is key - without it, even the best-laid plans can go off the rails.
Putting It All Together: The Win Formula in Action
Now that we've laid out the components, let's talk execution. Here's how to bring your Win Formula to life:
- Stay in Sync with Microsoft: Familiarize yourself with the FY25 incentives and programs. See how they fit into your customer journey and find ways to use them to your advantage.
Yes, there might be some extra steps involved, but trust us, the potential financial rewards are worth it.
- Work Closely with Your PDM: If you have a Partner Development Manager, involve them in your planning. They have valuable knowledge about matching your strategies with Microsoft's and getting the most out of the available programs.
- Regularly Check and Adapt: Make a habit of reviewing your plan's performance every month. Be ready to make adjustments based on what the data shows you. The market is constantly changing, so your strategy should too.
- Incentives Expert: Consider having someone on your team focus on staying up-to-date on the latest programs, understanding the requirements to participate, and making sure you're not missing out on any potential benefits.
- Make Incentives Part of Your Plan: Don't think of incentives as an add-on. Integrate them into your overall marketing and sales approach. This could involve creating products or services that align with valuable incentive programs or adjusting your pricing to factor in potential earnings.
- Use Technology to Your Advantage: Utilize tools to keep track of your eligibility for incentives, submit claims, and monitor payments. Automation not only saves time, but it also helps you ensure you're getting all the money you're owed.
- Make Incentives a Priority: Educate your team about incentives and make it part of your company culture. Hold regular training sessions, include incentive goals in your performance targets, and celebrate successes as a team.
Seize the Billion-Dollar Opportunity: Your Next Steps
As we've seen throughout this guide, there's a massive opportunity waiting to be seized in the world of Microsoft partner incentives.
With over $1 billion left unclaimed each year, the potential for growth is enormous. But knowing about the opportunity is just the first step—it's what you do with that knowledge that counts.
To help you navigate this complex landscape and maximize your incentive earnings, we're offering a free 90-minute Microsoft Partnership Maximization Workshop. This tailored session will cover:
- Overview of solution play priorities
- Assessment of your current partnership: Incentive utilization, co-selling, and co-marketing
- Path to maximizing Microsoft Value
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