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Marketing Development Funds (MDF)

Marketing Development Funds (MDF)

Noun

Marketing development funds (MDFs) are resources (most often monetary, sometimes knowledge-based) that a business grants to its channel partners to boost their partners' ability to promote and sell their products or services.

Marketing development funds are usually quite flexible and can be used by marketers to fund a variety of initiatives like brand awareness campaigns, covering the cost of sales lead list rentals or producing webinars.

Some companies distribute these funds to top-performing partners, while others use a proposal system where any partner can apply for funding. However, regardless of the distribution method, MDFs typically come with an agreement partners must sign before accessing the funds to maintain accountability.

Partners are usually required to report on how they use the funds and demonstrate a return on investment to make sure that the money is spent responsibility and contributes to the overall success of the partnership.

Example:

The marketing team at Lotus applied for marketing development funds to pay for a series of LinkedIn ads to promote a new webinar. The funding led to a notable increase in webinar signups, so they decided to apply for the funding again next quarter.

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