What Is MDF (Market Development Funds)?

MDF, or market development funds, are marketing dollars a vendor provides to a channel partner (usually in advance and at the vendor's discretion) to fund activities that drive demand for its products, such as campaigns, events and lead generation. Because MDF is forward-looking rather than earned from past sales, it typically requires pre-approval and proof of performance to claim.

Why it matters to IT channel partners. MDF is some of the easiest money in the channel to lose. It is use-it-or-lose-it, governed by deadlines and approval rules, and tracked across multiple vendor portals, so unused funds quietly expire every quarter.

How it works in vendor programs. The vendor allocates MDF, the partner submits an activity plan for pre-approval, runs the campaign, then files a claim with proof of performance (invoices, screenshots, attendee lists) to be reimbursed. Timing and discretion distinguish MDF from co-op funds, which are earned as a percentage of past sales.

Where partners lose money. Funds expire before they're spent, claims are rejected for missing proof or late filing, and no one has a single view of available MDF across all vendors.

Example. A partner has $30,000 in MDF from one vendor expiring at quarter-end. Without a tracker it lapses; with one, the partner is alerted in time to run an approved campaign and claim it.

Related terms

FAQ

No: MDF is discretionary and given in advance; co-op is earned from past sales. See MDF vs co-op funds.

Vendors set spending windows to drive timely demand; unspent funds are forfeited.

Track MDF across every vendor before it expires → See the MDF module