Do you get co-op marketing from a manufacturer, wholesaler, or channel partner? For businesses who do, it is an invaluable resource to help attract new clients and get your brand out there. For those who don’t, chances are you just haven’t asked! Did you know, according to Gleanster Research, that an estimated 50% of co-op funds go unused each year? Co-op marketing programs are designed to help businesses pay for a portion of their advertising costs and come from places like manufacturers, wholesalers, or channel partners. Typically, they are calculated or accrued based on a percentage of a business’s sales for that particular partners’ products or services. An example would be Goodyear Tire. They may offer an auto repair shop 10% back of their gross sales back on all Goodyear Tire products purchased at their shop in a calendar year. That could mean big bucks for that auto repair shop if they are doing $250k in Goodyear Tires for the year.
Fortunately, or unfortunately, not all co-op programs provide direct cash rebates like the example described above. Other co-op programs involve things like free products, promotional items, displays, banners, etc. Either way, as a business you win! These are products and services that you want and need to sell either way, co-op programs just help get the word out!
What do co-op programs pay for?
So, what exactly do co-op marketing programs pay for? To know for certain, you would need to talk to your suppliers, manufacturers, distributors, and more. These are typically the channels that hold the money. If you think about it wisely, it is a win-win for everyone. You sell their products or services, they give you some money back to do some additional advertising, you sell even more of their products or services and you both make more money! These guys have a vested interest in your success and by providing things like marketing dollars, promotional products, free products or services, displays, and more, they increase the likeliness that you will sell more! Again, win-win!
How do I get co-op funds?
Search Engine Optimization. SEO is a fantastic way to help boost your website visibility and their product or service visibility. At No Boundaries Marketing Group, we can put together a specific proposal surrounding their products and services so you can break out costs specific to them.
Paid Advertising. PPC and Social Media ads are a great way to increase their brand recognition while driving traffic to your website and to your store! Every dollar in a paid and every lead generated in an advertising campaign can be tracked to show them the value in doing a co-op program with them!
PR Campaigns. PR is another great way to get both you and the partner some exposure through local or national channels! Imagine a feature on a local news station where you both are interviewed during a news segment. Or maybe you have a thought-provoking article in a nationally syndicated magazine or online news source. Who wouldn’t want to be a part of that!
Dynamic Visuals. If you have a brick and mortar store, maybe some graphics for the front window might draw some attention your way. Maybe a new sign out on the roadway? If you are a service-based business like a plumber or electrician, maybe they will spring for a new wrap on your vehicle! Try to think outside the box and focus on what will attract attention from the outside in. Displays inside the store can be great, but those customers are already in the store. We want to increase your visibility to people who don’t know you!
Free Products or Discounts on Services. This is probably the most common form of co-op marketing because it is really in your channel partners favor. They can more closely control costs and it has a high perceived value from a business. Fact is, this may be a double-edged sword. Because most co-op funds are accrued, free products and services undermine your overall spend. You may make more money, but the channel partner may not see an incremental increase in sales which may lead to them pulling back from future programs.
How can No Boundaries Marketing Group help?
If you have any questions or would like to know more about co-op advertising and how we can help you, please give us a call today!