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 HPE MDF 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