MDF vs Co-op Funds: What's the Difference?
Why it matters to IT channel partners. The two behave differently and are lost in different ways: MDF lapses if you don't get it pre-approved and spent in time; co-op accrues quietly and is forfeited if you never claim what you've banked. Managing them the same way leaves money on the table in both.
The key differences.
| MDF | Co-op funds | |
|---|---|---|
| Earned how | Discretionary, allocated by the vendor | Accrued as a % of past purchases/sales (~1–5%) |
| Timing | In advance of sales | After sales, based on history |
| Approval | Pre-approval of an activity plan | Claim against accrued balance |
| Reimbursement | Often prepaid or reimbursed at discretion | Reimbursed after proof of performance |
| Best for | New launches, market expansion | Ongoing, repeatable promotion |
Where partners lose money. Treating co-op as "always there" (and never claiming it), or treating MDF as earned (and missing the pre-approval window). Both require active tracking against deadlines.
Example. A partner has accrued $12,000 in co-op from last year's purchases and was allocated $20,000 of MDF for a product launch. The co-op needs claiming before the program year closes; the MDF needs an approved plan before it expires - two different clocks.
Related terms
FAQ
See all your MDF and co-op funds in one dashboard → Explore Rebates-On