Key Takeaways

  • A co marketing agreement allows two or more companies to collaborate on marketing efforts while sharing resources, responsibilities, and results.
  • These agreements help define the scope of the partnership, ownership of created assets, dispute resolution processes, and revenue-sharing models.
  • Successful co marketing agreements include detailed provisions about lead sharing, intellectual property rights, performance metrics, and confidentiality.
  • Clear planning and agreement terms reduce misunderstandings, protect each party's interests, and enhance the success of joint campaigns.
  • It's recommended to work with a qualified attorney to draft or review your co marketing agreement to ensure compliance and alignment with business goals.

A marketing partnership agreement is created when two companies are in collaboration to promote the efforts of a co-branded offer. Both companies are responsible for sharing the work involved in the promotion and for sharing in the results.

Planning a Marketing Partnership Agreement

When writing up the agreement, these are some of the basic areas to cover:

  • The topic or theme of the promotion.
  • The timeline for the marketing project.
  • The goals each partner has for the promotion.
  • The obligations of each company.
  • Who is creating what and who owns the assets being created.
  • Where the products or services will be marketed.
  • How leads to potential customers will be handled.
  • A timeframe for the promotion.
  • An outline of the marketing plan.
  • A clear confidentiality clause.
  • Disclaimers.
  • Warranties.
  • Any other legal clauses necessary.

If people from both companies will be involved, make the entire process more efficient by assigning each person to a task they are most prepared or experienced to do.

Key Elements to Include in a Co Marketing Agreement

When creating a co marketing agreement, including the following elements can help ensure the partnership runs smoothly and protects both parties:

  • Purpose of the Agreement: Define the goal of the partnership, such as expanding audience reach or promoting a joint product.
  • Roles and Responsibilities: Clearly specify which party is responsible for which marketing activities, content creation, lead management, and promotional efforts.
  • Lead Handling and Ownership: Outline how leads will be shared and which party retains ownership of lead data or customer information.
  • Revenue Sharing or Cost Allocation: Describe how any costs (e.g., advertising spend) or revenues (e.g., commission from sales) will be shared between the partners.
  • Approval Processes: Establish a process for reviewing and approving marketing materials to maintain brand consistency.
  • Performance Metrics: Include KPIs such as leads generated, impressions, or sales conversions to evaluate the success of the partnership.
  • Confidentiality and Data Protection: Specify how proprietary information, customer data, and intellectual property will be protected.
  • Dispute Resolution: Provide procedures for resolving disagreements, including potential use of mediation or arbitration.
  • Duration and Termination: Define the agreement’s term, conditions for renewal, and how either party may terminate the partnership.

Overview of Co-Marketing Agreement

When a marketing partnership agreement is in place, it provides protection for both companies by clearly outlining the terms of the agreement in order to avoid any misunderstandings.

A partnership agreement is a clarifying contract that states the steps or processes the two companies will take to exchange products or materials and to provide the training tools necessary to market each other's products or services. This may include joint marketing, promotions, and sales events.

Marketing partnership agreements are also referred to as cooperative marketing agreements or joint marketing agreements.

Types of Co Marketing Agreement Strategies

Companies can use a variety of co marketing strategies to reach broader audiences and maximize campaign success. Common strategies include:

  • Joint Webinars: Co-host educational or promotional webinars that target each partner's customer base.
  • Content Collaborations: Share blog posts, case studies, or whitepapers that feature both brands.
  • Email Campaigns: Launch coordinated email marketing efforts, with both parties contributing to the content or sharing the distribution list.
  • Co-Branded Advertising: Run shared ad campaigns on social media, Google Ads, or other platforms with joint branding.
  • Event Sponsorships: Collaborate on industry events, conferences, or trade shows, sharing booth space or sponsorship duties.
  • Referral Programs: Create incentives for each company to refer customers to the other.

Choosing the right strategy depends on the nature of the products or services, target audience alignment, and available marketing resources.

Benefits of a Marketing Partnership Agreement

Several benefits result from a co-partnership agreement. For example:

  • A significant benefit to this type of agreement is the savings both businesses enjoy related to advertising costs. The cost of marketing and advertising for events and promotions is shared by each enterprise.
  • There is no confusion about payment provisions with an agreement in place. It also allows each business to clarify its marketing territory, the manner in which disputes will be handled, and other areas they want to be clarified in the agreement.
  • Each marketing partner will receive a percentage of the total direct sales of products or services of the other partner. Each will also receive a percentage of sales made attributed to the marketing of those products and services.
  • There may also be opportunities for revenue sharing and commission.
  • Branding is an important aspect of any business, and with a marketing agreement between two businesses, it helps get products in front of a new audience in an effort to build and expand a customer base.
  • If you partner with a company with the same or similar products or services, both businesses benefit from marketing and promotion. With this in mind, it is a good idea to co-market with a business with the same purpose and goal that results in benefits to both businesses.
  • With a marketing partner, you may have access to a team of people who can work together to create, promote, share, and market ideas.

Risks to Consider in a Co Marketing Agreement

While co marketing agreements offer significant benefits, there are also risks involved that both parties should consider:

  • Brand Misalignment: If the partners’ brand values or messaging are inconsistent, the campaign may confuse or alienate customers.
  • Unequal Contribution: One partner may contribute more effort, resources, or budget, leading to an imbalance in results or satisfaction.
  • Lead Disputes: Without clear guidelines, disputes can arise regarding lead ownership, follow-up, and data use.
  • Confidentiality Breaches: Sharing marketing strategies or customer information increases the risk of unauthorized use or disclosure.
  • Performance Shortfalls: If the agreement lacks clear KPIs, it may be difficult to hold each party accountable for results.
  • Legal Liability: Misuse of intellectual property or false advertising claims can lead to legal issues if not properly addressed in the agreement.

Including specific clauses to mitigate these risks is critical to the success of a co marketing agreement.

Things to Consider

In the agreement, everything pertaining to the relationship between the partners in terms of partner offers, logo/banner/signage placement, sales metrics, and ownership of the end customer buying the product should be stated.

Although some businesses may not feel an agreement is necessary, it is for the benefit of both parties to have one written and signed by both parties. As with any agreement, it is recommended to only sign an agreement with a company you trust and want to have a marketing partnership with.

While agreements are important, it is up to the two partners whether it will be detailed and complex or simply covers the basics.

There are many formats for marketing. The following are examples of how partners can promote goods and services:

  • eBooks.
  • Blog posts.
  • Webinars.
  • Videos.
  • Social media (i.e., Twitter, Facebook, and Instagram).
  • Online and offline events.

An example of when a marketing partnership agreement is utilized is when one business is interested in placing products in another the store or storefront of another business to promote and increase sales. Another example is a joint marketing campaign or sale that benefits both businesses.

Best Practices for Drafting a Co Marketing Agreement

Follow these best practices when drafting a co marketing agreement to create a successful and effective partnership:

  1. Involve Legal Counsel: Consult an attorney experienced in contract law to ensure the agreement is legally sound and covers all necessary terms.
  2. Be Clear and Specific: Avoid vague language. Clearly define deliverables, timelines, approval processes, and ownership rights.
  3. Set Measurable Goals: Use defined KPIs to track success and make performance evaluation objective.
  4. Plan for Dispute Resolution: Include clear terms for resolving disputes, including escalation procedures or arbitration options.
  5. Protect Intellectual Property: Address ownership and usage rights for any shared logos, trademarks, marketing content, or customer data.
  6. Allow for Flexibility: Include provisions that allow adjustments to the agreement if market conditions or campaign needs change.
  7. Establish Communication Channels: Specify how and when partners will communicate throughout the campaign, including points of contact.

For professional guidance, you can find experienced attorneys on UpCounsel to help draft or review your co marketing agreement.

Frequently Asked Questions

  1. What is a co marketing agreement?
    A co marketing agreement is a contract between two or more companies that outlines how they will collaborate on marketing efforts, share resources, and promote joint offers.
  2. What should a co marketing agreement include?
    It should include the campaign goals, roles and responsibilities, lead handling processes, cost sharing, performance metrics, confidentiality provisions, and dispute resolution terms.
  3. How is a co marketing agreement different from a general partnership agreement?
    A co marketing agreement focuses specifically on marketing collaboration, while a general partnership agreement governs overall business operations and profit-sharing between partners.
  4. What are the risks of a co marketing agreement?
    Risks include brand misalignment, unclear lead ownership, contribution imbalances, confidentiality breaches, and legal liability if the agreement is not properly structured.
  5. Do I need an attorney to draft a co marketing agreement?
    While not legally required, working with an attorney helps ensure that the agreement is thorough, protects your interests, and complies with applicable laws.

If you need help with a marketing partnership agreement, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.