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What are MDFs and Co-Op Marketing funds?

Funds provided by companies that sell through their Indirect Sales Channels or intermediaries to use for their sales and marketing programs.

 

Co-op funds and MDF empowers local partners help company’s sell more of their products and increase local awareness of their national brand. For instance, when a company launches a new product, MDF can enable channel partners to tap directly into their regional customer base and kick-start sales in that specific market.

MDF:

MDF is more about growth; think of it as enabling your partners to lay the groundwork for sales vs. more retention-based initiatives.

Co-Op Programs:

Traditional co-op marketing funds are often expressed as contractually obligated funds, meant to support the partner in more traditional advertising initiatives.

The move toward more proposal-based MDF is helping brands step into or even grow in new or traditionally non-growth markets.

Well-planned and communicated, proposal-based MDF programs are assisting brands in grabbing market share by leveraging the creativity, energy and networks of their partners and database.

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Further elaboration:

Discretionary funds issued based on future potential.

Guidelines are well-defined, with comprehensive Proof-Of-Performance (POP) requirements.

The available funds are often not announced to channel partners in advanced, but are negotiated to achieve specific goals.

Funds are forecastable by channel partners, making it easier to plan programs in advance.

Possible to disseminate funds more dynamically to address the needs of rapidly changing markets or industries.

Requires minimal pre-approval administration, fostering ease-of-use.

Requires more rigorous POP documentation for each activity.

Ideal for activities that qualify as a marketing expense.

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