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How to Answer the CFO-Building the Processes to Manage the Financial Implications of the Channel Programs


In this paper, we will focus primarily on one type of popular channel incentive: Channel Marketing Funds. These range from MDF to co- operative funds, depending on the organization and the type of channel partners used. There are four types of marketing funds commonly used by vendors:


  • Marketing Development Funds
  • Business Development Funds
  • Joint Marketing programs
  • Brand-owner Led Co-Marketing programs

While all have their different criteria and processes, the basic premise is the same – they have budget and allocation implications for their respective marketing campaigns on the front end of the cycle, and timely and accurate financial settlement implications at the back-end of the cycle. Typically, distributors and resellers are expected to hit pre -set revenue and other performance targets in order to qualify for and participate in these programs. These incentives can be tailored to specific campaigns or products and have their own criteria tied to it. Channel partners can also be incentivised to sell beyond pure product, such as services, training, demonstration kits, etc.


Vinay Iyer Vice President of CRM Marketing, SAP Vinay Iyer is responsible for generating thought leadership in key customer and channel-related solution areas and taking them to market. Vinay brings over six years' experience in developing and marketing key CRM solutions such as channel management, CRM On Demand, and, more recently, pricing management for the High Tech industry sector. Previously, Vinay spent over five years with Siebel Systems in the US and Europe developing and marketing the Partner Relationship Management product line. Vinay is an Electrical Engineering graduate and also holds a MBA degree from The Wharton Business School.
30 Sep 2008
18 Sep 2008
18 Page(s)
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