Definition
MDF, or market development funds, is money a vendor gives partners to pay for marketing and sales activity that creates demand for the vendor's products. Partners usually propose an activity, get approval, run it and then submit proof to get paid. Rules vary by program.
MDF often pays for events, digital campaigns, content or sales training. Many vendors tie MDF to a partner business plan so the spending supports agreed goals.
Common problems include slow approvals, confusing claim steps and money going to activities with no follow-up. Vendors that track leads and pipeline from each activity can make better funding choices next time.
In practice
A partner requests MDF for a lunch-and-learn with local IT leaders, runs the event, then submits the attendee list and receipts to be reimbursed.