Skip to main content

Market Development Funds (MDF)?

What are Market Development Funds (MDF)?

Market Development Funds, or MDF, are funds that a vendor provides to its channel partners to help them with their local sales and marketing efforts. It's a form of co-operative marketing. A partner can apply for MDF to help pay for activities like hosting a local event, running a digital advertising campaign, or creating a piece of co-branded content. MDF programs are a great way for vendors to empower their partners to generate demand in their own markets, and they are a key benefit of many partner programs.

Related Terms

Managed Service Provider (MSP)

What is Managed Service Provider (MSP)? A Managed Service Provider, or MSP, is a company that remotely manages a customer's IT infrastructure and/or end-user systems, typically on a proactive basis and under a subscription model. Instead of a business hiring its own IT staff, it can outsource its I

Read More

Margin

What is a Margin? In a sales context, margin refers to the difference between the price a partner sells a product for and the price they paid the vendor for it. It's the partner's profit on the sale. For example, if a reseller buys a software license from a vendor for $70 and sells it to the end cu

Read More

Market Leader

What is a Market Leader? A market leader is the company that has the largest market share in a particular industry. A market leader often has significant advantages, such as strong brand recognition, economies of scale, and the ability to set industry trends. Other companies in the market are often

Read More

Market Penetration

What is Market Penetration? Market penetration is a growth strategy where a company focuses on selling more of its existing products to its existing target market. It's about increasing your market share. Tactics for market penetration can include lowering prices, increasing marketing and promotion

Read More

Marketplace

What is a Marketplace? An online marketplace is an e-commerce site that connects buyers and sellers, but doesn't own the inventory itself. Think of platforms like Amazon, eBay, or the Apple App Store. These marketplaces provide the infrastructure for third-party sellers (including partners) to list

Read More

Master Agent

What is a Master Agent? A master agent is a type of channel partner that acts as a middleman between a large group of smaller, independent sales agents and a vendor, typically in the telecommunications or cloud services industry. The master agent holds the contract with the vendor and provides the

Read More