What is Co-Op Funds?
Co-Op Funds (cooperative advertising funds) are marketing dollars that vendors make available to channel partners based on a percentage of the partner’s purchase volume. Unlike MDF (which is allocated at the vendor’s discretion), co-op funds are accrued automatically as partners buy products, creating a self-funded marketing budget tied to partner commitment.
How Co-Op Funds Work
- Partner purchases $100,000 of product from vendor in Q1
- Co-op accrual rate is 3% of purchases
- Partner accrues $3,000 in co-op funds
- Partner uses funds for approved marketing activities
- Partner submits proof of execution for reimbursement
Co-Op vs MDF
- Co-Op — Accrued based on purchase volume, partner-driven, formulaic
- MDF — Allocated at vendor discretion, strategic, based on business plans
- Many programs offer both: co-op for all partners plus discretionary MDF for strategic partners
Eligible Activities
- Local print and digital advertising
- Trade show booth costs
- Direct mail campaigns
- Customer events and seminars
- Online marketing (PPC, social, email)
- Signage and point-of-sale materials
How xAmplify Supports Co-Op Funds
xAmplify’s PRM platform provides comprehensive tools for co-op funds, helping companies scale their partner programs with automation, analytics, and seamless partner experiences.
Book a demo to see how xAmplify handles co-op funds.
