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For those large companies in the technology industry with smaller channel partners that are being relied on for partner channel marketing, there are many options to help support your products. The most common methods that people look into are MDF funds and Co-op funds. There are strengths and weaknesses to both methods; it will ultimately depend on your business's goals. Most MDF funds and co-op funds land in the range of 3-10% of reseller purchase price. But when you set up such a program, make sure the money is only spent on marketing activities that benefit you. One way to ensure this is to build in a reporting piece and only fund activities when the objectives are in line with your plans. Also keep in mind that the money you fund on purchases will only be paid after revenue has been generated. Another way of funding resellers is to create joint marketing activities and provide funding for those joint activities. In these cases, you work on a project-by-project basis. The trick here is to come up with a good incentive model. For instance: let the reseller organize a seminar and invite their clients. They would pre-fund it. You would pay a fixed amount per actual attendee and possibly another fixed amount per qualified lead (make sure you define what a qualified lead is).
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