Co-Op Versus MDF Funding Models

April 20, 2018 Craig DeWolf

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

Craig DeWolf

Craig DeWolf, Perks WW VP, Marketing Enablement, has over 30 years of channel program and trade marketing experience spanning a variety of industries and distribution models including technology and consumer product companies. As Vice President, Marketing Enablement he provides a unique multi-industry perspective gleaned from a background working across agency, supplier, and vendor/manufacturer roles. Craig has engaged with key business partners and worked with a variety of clients on both channel and trade strategies and programs, including: AT&T, Apple, Avaya, Bridgestone Goodrich, Canon USA, Hewlett-Packard, Kraft, Oracle, Panasonic, Timex and Xerox. Immediately before joining Perks Worldwide, Craig held senior roles at Hawk Incentives, Hawkeye Channel, and CCI—a work history that shows his deep understanding of the channel space.

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