Every year, aftermarket suppliers set aside co-op marketing money for their distributors. It's usually earned as a share of purchases, and it's meant to help sell the supplier's products through the channel.
It's one of the most useful tools in the business. It's also one of the most wasted.
Some of that money is never claimed. Some of it gets spent at the last minute on whatever is easy, before the deadline passes. And some of it is spent on marketing that has little to do with the brand that paid for it. In each case, the supplier's investment doesn't do the job it was meant to do.
Where co-op goes wrong
It goes unspent. Distributors are busy running a business. Claim forms, approvals and proof of performance take time. When the process feels like paperwork, funds expire.
It gets spent without a plan. A rush to use funds before year-end leads to generic ads, a few promotional items or a flyer that looks like every other flyer. The money is used, but it doesn't move much product.
It doesn't match the brand. A distributor runs a promotion that uses the wrong logo, the wrong message or the wrong product focus. The supplier paid for it, but the marketing works against the story the brand is trying to tell.
The supplier isn't in the room. Many suppliers set the rules, approve the claims and pay the bills, but have little say in how the money is actually used. That's a missed chance to steer the spending toward what matters most.
Suppliers should be part of the conversation
Co-op isn't a rebate. It's a marketing investment, and suppliers should treat it like one.
That starts with clear guidelines: which products to feature, which messages to use, which channels qualify and what good execution looks like. It continues with real conversations with distributors about their plans, not just a review of claims after the money is spent.
The best suppliers also make it easy to do the right thing. They provide ready-to-use content, such as photos, video, product copy and campaign ideas. They offer suggested programs a distributor can run with little effort. And they share what's working at other distributors so good ideas spread.
Distributors need support, not just funds
Most distributors want to use their co-op well. What they often lack is time, marketing help and a clear picture of what the supplier is trying to achieve.
A distributor with the right support can do a lot with those funds:
- Local digital campaigns that reach shops and enthusiasts in their own market
- Counter and shop programs that give counter pros and technicians a reason to choose the brand
- Training events that build product knowledge and loyalty
- Customer events and promotions tied to the supplier's launches and priorities
- Content built from the supplier's own real-world proof, from the track, the trail or the shop
When a distributor's marketing lines up with the supplier's, both get more out of every dollar. The distributor sells more. The supplier's brand shows up the right way, in the right place.
What a well-run co-op program looks like
- A plan before the money is spent. Supplier and distributor agree on goals, products and timing at the start of the year, not at the end.
- Clear, simple rules. Easy guidelines, quick approvals and a claims process that doesn't feel like a chore.
- Ready-made content. Assets that make it easy for distributors to market the brand well.
- Regular check-ins. Short conversations through the year about what's working and what isn't.
- Measurement. Track what each program produced, such as sell-through, shop orders and leads, so next year's funds go to what worked.
Someone has to own it
The biggest gap in most co-op programs is that no one owns the whole picture. The supplier owns the budget. The distributor owns the spending. Nobody owns the results.
That's where an outside partner who knows both sides can help. Someone who understands how suppliers think about their brand and how distributors think about their business can build plans both sides agree on, support execution and report on what the money actually did.
Co-op dollars are already in the budget. The opportunity is making sure they do their job.
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