Market Development Funds (MDF) are strategic investments vendors make in their channel partners—such as distributors, resellers, or VARs—to co-fund marketing and sales initiatives that grow both partner business and vendor revenue.
Unlike co-op funds (earned from past sales), MDF is typically allocated proactively, based on a partner’s proposal to target a market or customer segment.
The process usually involves:
MDF extends a vendor’s marketing reach cost-effectively by enabling trusted local partners to execute campaigns. It combines the vendor’s resources with the partner’s expertise, producing results that neither could achieve alone.
MDF is widely used across industries with strong channel ecosystems—technology, telecom, manufacturing, financial services, and more.
Typical uses include:
Modern digital platforms streamline the entire MDF lifecycle: proposals, approvals, fund tracking, claims submission, reimbursement, and ROI reporting.
