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Co-Op Versus MDF Funding Models

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 Author

Perks WW Channel Experts

Perks WW Channel provides services and software to help you engage your B2B and indirect channel partners to improve sales effectiveness. With a listing on the Salesforce AppExchange and a global user base exceeding 9.25 million users, Perks WW Channel takes the guesswork out of channel incentives and loyalty programs. Our solutions empower leading global enterprises with the sales and marketing programs they need to produce a competitive advantage through their indirect sales channels. The available solution set encompasses the three most critical areas to optimize indirect channel performance: marketing enablement, incentive management and global managed services. We provide these services to some of the most influential companies in the world, all backed and supported by years of expertise and our Science of Motivation™ methodology.

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