A programme in which a supplier reimburses part of a partner’s advertising spend, usually accrued as a percentage of purchases and claimed with evidence.

Co-op accrues automatically as the partner buys, creating a fund they can draw against for approved advertising. The claim requires the creative, the placement and the dates.

Funds are commonly forfeited — accrued but never claimed, because assembling the evidence after the fact costs more than the claim is worth. Binding evidence to the fund at the point of commitment rather than the point of claim is what changes the completion rate.

Related terms

MDF (market development funds)

Money a supplier provides to a channel partner to fund marketing or promotional activity, drawn down against approved plans and evidence.

Proof of performance

The evidence that a funded promotional activity actually took place, required before the funding can be legitimately claimed or retained.

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