Funds provided by manufacturers or vendors to their channel partners, like distributors, resellers, or retailers, to help them promote and sell the manufacturer’s products. This type of funding is typically part of a larger channel marketing strategy. MDF can be used for various marketing activities, such as advertising, trade shows, product demos, or online marketing campaigns.
MDF aims to stimulate sales and brand awareness, often in specific markets or territories. These funds are usually offered on a claim-back basis, where the channel partner incurs the marketing expense upfront and then claims reimbursement from the vendor, often with proof of performance or compliance with agreed-upon terms.
MDF programs can be highly beneficial as they provide channel partners with the resources to market and sell products effectively. This leads to increased sales for both the partner and the vendor. However, it’s essential for both parties to clearly understand and agree upon how the funds can be used and the metrics or outcomes expected from the funded activities.