New incentive for CSP partners: FY23 cooperative marketing funds in the new commerce experience

Microsoft’s partner incentives programs are designed to reward partners for participating in our ecosystem and meet customer needs through value-added services. Customer needs often extend beyond the transaction, so we offer partner incentives and investments across each stage of the customer journey.

As of November 1, 2022, partners participating in the Microsoft Commerce Incentives (MCI) program can begin earning cooperative marketing funds (co-op). Partners can apply these funds toward development and marketing costs related to best practices for building channel awareness and promoting Microsoft products.

What are the benefits to you?

Co-op funds are being offered in the MCI program as an investment in partner demand generation, market development, and readiness activities. These investments can both contribute to market awareness and sales pipeline growth, and support efforts to develop technical skills that are needed to build specialized practices and Centers of Excellence around Microsoft technologies.

Partners enrolled in the MCI program will begin earning a 60 percent rebate/40 percent co-op split for new commerce Cloud Solution Provider (CSP) engagements as previously available in the legacy CSP incentive program. Enrolled partners will accrue co-op funds from November 1, 2022 – December 31, 2022, which can be used during the subsequent six months (January 1, 2023 – June 30, 2023) on eligible co-op activities.

Reimbursement for eligible activities can be claimed through Partner Center under the MCI program starting February 16, 2023. If your co-op funds for November 1, 2022 – December 31, 2022, are below the USD10,000 minimum threshold, the funds will be converted to rebate and paid.

Incentives in CSP new commerce went into effect in October 2021 and will be earned and paid through the MCI program. Incentives for legacy CSP subscriptions will be paid through December 31, 2022. After that date, any legacy subscription still in effect won’t generate monthly incentive earnings or payments to the partner. Partners should consider the end of monthly rebate payments for legacy subscriptions starting January 1, 2023, when making decisions about when to migrate legacy subscriptions to new commerce. However, Microsoft will continue to pay programmatic margin as part of the legacy CSP program for seat-based.

Get started earning your co-op funds

To ensure you don’t miss out on using your earned FY23 co-op funds, take these steps:

1. Enroll in the MCI program through Partner Center.
2. Review these MCI resources and Co-op funds resources.
3. Understand the changes to your monthly earnings.
4. Set up an MCI co-op bank and tax profile in Partner Center.*
5. Distribute this communication to all the members of your organization who plan and/or manage co-op funds.

Partners must be enrolled in the MCI program, have a completed bank and tax profile for the co-op earning type, and meet program requirements to start earning co-op funds. Sign in here for more information on how to review your eligibility and enroll.

*Profile must be complete and approved by November 30, 2022, to accrue November 2022 co-op funds.

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