Co-op is a channel marketing fund that partners accrue as a percentage of their sales and spend on approved marketing activities, with the vendor reimbursing after proof of performance.
Co-op, short for cooperative marketing funds, is an accrual-based marketing incentive. Partners earn a percentage of their sales into a co-op balance, spend it on approved marketing activities, and submit proof of performance to be reimbursed by the vendor.
The vendor sets an accrual rate (for example, 2 percent of net sales). Partners execute pre-approved marketing activities, pay upfront, then claim reimbursement with invoices and results. Balances typically reset annually.
Co-op rewards partners who sell, ties marketing spend to sales performance, and gives partners predictable marketing budgets they control.
Co-op is earned as a percentage of past sales; MDF is proactively allocated by the vendor for future campaigns. Many programs run both.
Channelo covers deal registration, MDF, tiering, training, and analytics in one place, across programs at every stage of maturity.