Co-Marketing Agreements
Co-marketing budget management
Plan, monitor and close a shared campaign budget with clear cost allocations, spending authority, cash timing and evidence for the next funding decision.
Manage a co-marketing budget through three decisions: what each partner may commit, what each will ultimately bear, and whether the results justify another campaign.
Keep the approved budget, current forecast, supplier charges, payments and contributed work distinguishable throughout. Agree spending authority and cost allocation before placing orders.
Build a budget both partners can use
Start with the campaign activity and its intended customer outcome. List the work needed to deliver it, including production, distribution, suppliers and any follow-up included in scope. Give each cost a defined output. For example, an approved digital guide may or may not include another format or later edits.
For each item, record its owner, approved limit, partner allocation, contracting party, expected payment date and supporting approval or order. Track the amount committed, invoiced and paid separately. An order uses budget capacity before payment; an invoice may arrive after the activity ends.
Use a consistent basis when comparing amounts, including whether figures in the shared management record include GST. Each business must assess its own invoices and tax treatment in its accounting records.
Link the budget to the marketing plan
A marketing plan identifies the target market, customer needs, goals, time frames, messages, channels and activities. Bring those elements into the campaign proposal so both partners can see which planned activity each budget line supports and what customer outcome it is intended to serve.
Keep the agreed goal and time frame visible during budget reviews. If a proposed change alters an activity or channel, check whether it still supports the campaign goal before approving the revised spend.
Keep cash and contributed work clear
The partners can share agreed costs equally or use another allocation that reflects their contributions and use of the campaign. State the rule for each relevant item. The choice of method belongs in the budget decision; the detailed production obligations and rights belong in the partners' agreement.
Record meaningful staff work or supplied assets alongside cash costs when they affect that decision. Describe the output, provider, agreed management value if any, and evidence of delivery.
Show whether that value changes a partner's cash share or appears only in a total-effort view. An internal value is not cash available to pay a supplier.
Cash Costs vs Contributed Work in Co-Marketing
- Cash CostsActual payments to suppliers (e.g., ad spend, design fees)
- Contributed WorkStaff time, content creation, or assets provided by partner
- Key DifferenceContributed work has internal value but is not cash available for supplier payments
Review commitments and cash timing
Give each partner access to the current record and name its maintainer. At each review, compare the forecast with the original approved amount. Check completed work, open orders, expected invoices and proposed changes. Preserve the original approval so a variance remains explainable.
Before an extra commitment is made, record its reason, revised amount, effect on other items and the person authorised to approve it. Check payment timing as well as the total: one partner may owe a supplier before a reimbursement from the other is due.
Monitor the campaign financially
A cash-flow statement can help each partner plan incoming and outgoing amounts, while the shared campaign record shows the related commitments and approvals. Compare expected cash movements with supplier payment dates and any incoming partner contribution, so a timing gap is visible before it becomes a payment problem.
At each agreed review, also consider whether the activity is tracking towards its marketing goal and time frame. Record the performance information used for that assessment, then carry relevant findings into the next forecast.
Key Financial Metrics for Co-Marketing Campaigns
- Approved Budget
- Total allocated funds from both partners
- Cash Flow Gap Risk
- Timing mismatch between outgoing payments and incoming reimbursements
- Performance Indicators
- Registrations, qualified leads, opportunities — not just campaign association
Close the record and decide what follows
After delivery, match approved items with orders, invoices, credits and payments. Identify missing or disputed charges, then calculate each partner's share under the agreed rule. A reimbursement between partners settles a share; it is not another supplier cost.
Use the reconciled cost and a separate review of customer response against the marketing goals and time frame to decide which activities and channels to retain, change or stop. Registrations, qualified enquiries and opportunities are different signals.
A campaign association alone does not show that the partnership created demand. Authorise the scope and limit of any next budget explicitly.
Keep the final campaign figures in each partner's financial records and in the shared close-out. Retain the approvals and reconciliation that explain each amount recorded by each business.
In this guide
- Comparing equal cost sharing with contribution-based budgetsCompare equal cost sharing with contribution-based budgeting for a joint campaign, including cash, staff work, exceptions and changes.
- Recording in-kind production contributionsDocument a partner's in-kind campaign work with a defined output, agreed value, delivery evidence and clear separation from cash spending.
- Reconciling expenses after a joint campaignMatch approvals, invoices, payments and partner shares after a joint campaign, then resolve credits, missing charges and reimbursements.
- Deciding whether a partner campaign deserves more fundingDecide whether to repeat, revise, test or expand a partner campaign using delivery, relevant outcomes, full costs and a bounded next proposal.
