Siebel Partner Relationship Management Administration Guide > Using Market Development Funds >

Creating and Using MDFs

Market development funds (MDFs) are created for a variety of reasons. For example, an alliance partner may agree to a fixed MDF as part of its alliance agreement, or you can do joint marketing with a partner and create an accrual MDF to which you will contribute one percent of the partner's sales.

When you create a new MDF, you must specify which partners are participants in the fund and you must specify the fund type.

There are three types of MDFs:

• Fixed Fund. A fund that has a specific amount of money allocated to it.
• Accrual Fund. A fund that has money allocated to it based on the partner's performance. For example, partners can accrue funds based on the number of units sold of a specific product or product line, based on a percentage of their revenues, or based on other metrics you define.
• Mixed Fund. A fund that has both a fixed and an accrual element. It begins with a specific amount of money, and it also accrues additional money depending on partner performance.

When you create the Fund record, you must specify the type of fund. This determines where funds will be added.

To create a new MDF, you perform the following steps:

• Create a new fund record
• Add participants to the market development fund
• Add funding to the market development fund