SmartBiz IT Research Library

In this paper, we will focus primarily on one type of popular channel incentive: Channel Marketing Funds. These range from MDF to co- operative funds, depending on the organization and the type of channel partners used. There are four types of marketing funds commonly used by vendors:

• Marketing Development Funds
• Business Development Funds
• Joint Marketing programs
• Brand-owner Led Co-Marketing programs

While all have their different criteria and processes, the basic premise is the same – they have budget and allocation implications for their respective marketing campaigns on the front end of the cycle, and timely and accurate financial settlement implications at the back-end of the cycle. Typically, distributors and resellers are expected to hit pre -set revenue and other performance targets in order to qualify for and participate in these programs. These incentives can be tailored to specific campaigns or products and have their own criteria tied to it. Channel partners can also be incentivised to sell beyond pure product, such as services, training, demonstration kits, etc.