Co-Op Marketing Funds - Why Local Partners Say they Don't Use Them

October 28, 2011 Jared Shusterman

Co-op marketing and MDF programs have historically struggled with under-utilization. By some estimates, over 50% of funds available to channel partners go unused. With the economy in its current state, one would think channel partner programs would spike - especially when funding is involved. So how come local channel partners aren't leaning more on their brand partners to take advantage of co-op marketing & advertising spend? Here are the top reasons partners give:

  • Unfamiliarity / Unaware
  • Complexity / Manual Processes / Administrative Burden
  • Long delay in reimbursement resulting in the local partner being out-of-pocket
  • Restrictive rules to participate
Many local partners also have their choice of brands and what markets to participate in. The larger the number of programs, the more difficult it is for them to manage. Especially when this is not the local partners' core focus, its important for a Co-op funds process and program to follow a few simple rules.
In the next post, we'll talk about what these are and how they can improve success - and we'll update this post with the link.
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About the Author

Jared Shusterman

Jared is the Chief Executive Officer of SproutLoud. Since 2006, he has been primarily responsible for strategic direction of the Company, as well as the oversight of SproutLoud's Partner ecosystem. Prior to SproutLoud, Jared worked in Thomas Weisel Partner’s internet and online advertising investment banking practice in San Francisco. He served as the lead analyst on a number of Corporate Finance and M&A deals including Newscorps’ buyout of Intermix Media (Myspace.com). Jared graduated with a B.A. in Finance and Marketing from the McIntire School of Commerce at the University of Virginia. Jared has an MBA from the Kellogg School of Management at Northwestern University and is a member of the Young President's Organization (YPO). Jared has been honored as one of the Top 40 Under 40 Entrepreneurs by South Florida Business Journal and a Top 50 Entrepreneur by Business Leader Magazine. Jared lives in South Florida with his wife and two sons.

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