Wondering how should you structure the funding of your promotional allowance program? Accrual or proposal or a hybrid of the two?
Accrual (Co-Op) is defined as a percentage of past sales performance. The proposal-based model (MDF) considers the future potential of the partner and/or the activities funded. Whether you choose an accrual-based or proposal-based funding model depends on the needs of the target industry and associated channel practices.
In this Incentive Insights brief you will learn the specifics of Co-Op and MDF funding, their advantages and disadvantages, and the legal regulations that affect them.
About the AuthorMore Content by Craig DeWolf