MDF or Market Development funds are monetary funds given by a manufacturer's sales or marketing department to help a partner/reseller/distributor sell its products or to market the manufacturer's brand.
Similar to but different than "coop budgets" or "cooperative budgets".
MDF funds are disbursed based on the execution of a marketing plan agreed-to between the partner and the manufacturer.
Coop funds are paid as a percentage of revenue realised by the partner concerning manufacturer's products. The recipient of funds can be a reseller or a distributor (wholesaler).
The percentage or amount vary according business or products. Typical amounts are 1 - 1.5% of sales of product.