What are market development funds (MDFs)?
Summary
However, it is not uncommon for some MDFs to be paid at the beginning of the agreement due to the cash flow considerations from the vendors perspective. This claim-back is usually based on sales of the promoted items, allowing the vendor to gain maximum reward for the effectiveness of their targeted marketing campaigns. With this greater purchase volume, the vendors may benefit indirectly as customers are driven to them allowing for the opportunity to upsell other related products which are not being marketed. With a system that can automate the management of MDFs, companies would be more able to focus time and resources on specific marketing activities themselves. Having the ability to automate calculation of MDF earnings and assess their effectiveness and value to your company via forecasts, modelling and comparisons provides huge benefit.
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