Using MDF Funds

In conversations with some fellow business associates (as well as seeing
other blogs on-line) I noticed the large amount of business owners or managers
who are unfamiliar with or do not understand the great resources of using MDF
(marketing development funds) from their wholesalers or distributors.  In a
nutshell this is money your company earns through purchasing of a manufacturer
or distributor's products.  In most cases you have to sign up for it and be at a
certain level of commitment with that distributor or manufacturer to earn the
money back.  In most cases it is 1 to 2% of your purchases.  Your challenges as
a business to accessing these funds are learning how to use, gain approval, and
report back how you used it to get reimbursed and secondly know how to co-brand
as the money technically is their money they are giving you so they do have a
vested interest  on how it's used.  Some distributors or manufacturers are more
flexible than others in letting you use MDF funds. I have found some too
restrictive in the fact they only allow you to use their "marketing partners" to
create campaigns which I find offensive as it is saying "Here is who you can do
business with and here are your choices of campaigns." I like to think out of
the box such as using social media with MDF funds or do events. This is one of
the downfalls of some firms who give you marketing development funds is the fact
they want total control of the money they give you. (Even though it is supposed
to be yours for buying their products) They limit how you use it, they tell you
what programs you can pick (which are few)  and lastly they give you little
space or opportunity to brand your own business yet they want their brand highly
promoted.  No thanks. As one popular commercial states, "It's my money and I
want it now!"  Now on the positive note, I do know of one distributer who allows
pretty much a free hand in using MDF funds to their resellers.  They allow you
to think outside the box and be creative. All they ask is they see how their
brand or logo is being used and if that is to their liking they always say "Go
with it!" This kind of company I like. They support their resellers, they allow
creativity, and they know you earned that money by buying their products so you
do with it as you choose.   My final point with MDF funds is make sure you ask
questions with your sales rep or territory manager about their program.  Is it
worth signing up for? Does it benefit your business or their business?  Is it
really a 50-50 partnership?  A good program will basically work like free money
to you. You can buy marketing products or collateral, you can advertise, you can
put on events or you can create media campaigns.  In the end, it should cost you
nothing.