Partner economics reference

    Partner Program Comparisons

    Concise distinctions between concepts that are often confused.

    Rebate vs. discount

    A discount changes the transaction price at sale. A rebate is earned and calculated after qualifying activity, often across many transactions.

    Claim vs. deduction

    A claim asks for approval and payment or credit. A deduction is already withheld from an invoice payment and must be resolved in accounts receivable.

    Accrual vs. obligation

    An accrual is an accounting recognition. An obligation is the operational contractual balance owed to or by a specific party. They may align, but they answer different questions.

    Royalty vs. revenue share

    A royalty compensates for licensed rights or assets. Revenue share allocates an agreed economic basis among participating parties. Similar formulas can serve different legal and accounting purposes.

    MDF vs. promotion

    MDF is a governed funding pool for approved partner marketing. A promotion is usually a defined commercial event or allowance tied to products, dates, placement, or performance.

    Price protection vs. chargeback

    Price protection covers eligible inventory when a price drops. A chargeback covers a verified resale made under a specific authorized price.