Market development funds (MDF)

Market Development Funds (MDF) are financial resources provided by a company to their channel partners (partners, resellers, or integrators) to support joint marketing efforts and help drive demand for their products or services. In the B2B context, MDF is typically used for co-branded marketing campaigns, promotional activities, events, or sales enablement programs designed to grow market share and reach new customers. In B2C, MDF is primarily used with retail partners and can include brand placement (e.g., endcaps), rebate offers or other promotions. Proper utilization of MDF can strengthen channel relationships, improve partner performance, and boost overall revenue. Effective MDF programs require strategic planning, clear metrics for success, and alignment between vendors and partners on marketing goals.