I only started using alfalfa last year (I'm still relatively new to this which is why I also ask so many questions!). At the time I put it around the plants that were already established and just watered it in. The pellets break down pretty quickly.
For plants that were new last year, I would add about 1/4 to 1/2 a cup to the bottom of the hole, along with some compost and time release fertilizer if I had it around, when I planted them. This year, they are all getting it around the plants. Then, when I move (should I ever finish this dissertation which I am procrastinating writing by being on ATP
) they will get it in the holes when planted again.