Why do most distributors not use co-op marketing funds?
Most distributors have access to marketing dollars they never use. These funds are made available by manufacturers to help promote products, yet a large percentage goes unclaimed every year.
The issue is not a lack of opportunity. It is the complexity behind accessing and using those funds effectively. Different rules, deadlines, and approval processes create friction, something Tim Rasmussen sees across distributors. For many teams, it becomes easier to ignore the money altogether.
That decision comes at a cost.
But before we proceed, don’t forget that this episode is brought to you by Video Case Story, collecting, crafting, and delivering customer stories.
Why Do Most Distributors Not Use Co Op Marketing Funds
Most distributors have access to marketing dollars they never use. These funds are made available by manufacturers to help promote products, yet a large percentage goes unclaimed every year.
The issue is not a lack of opportunity. It is the complexity behind accessing and using those funds effectively. As Tim Rasmussen explains, different rules, deadlines, and approval processes create friction. For many distributors, it becomes easier to ignore the money altogether.
That decision comes at a cost.
This episode is brought to you by Video Case Story, collecting, crafting, and delivering customer stories.
Why Co-op Marketing Gets Ignored
Co-op marketing sounds simple on the surface. Manufacturers provide funds. Distributors use those funds to promote products.
In reality, the process is fragmented. Each manufacturer has different requirements, timelines, and rules for how funds can be used. For independent distributors operating on tight margins, there is rarely time or internal resources to manage this process.
Why distributors ignore co-op marketing:
- Different rules and requirements across manufacturers
- Conflicting deadlines and approval processes
- Limited time and internal resources
- No clear ownership inside the business
As a result, funds go unclaimed or get used in the easiest possible way. Over time, this becomes the default approach, not because it works, but because it is familiar.
The Problem with Easy Marketing Decisions
When distributors do use co-op funds, they often default to simple promotional items. Trucker hats. Golf balls. Basic giveaways.
These are easy to execute, but difficult to measure. There is little clarity on how they drive sales or contribute to growth.
Common low-impact uses of co-op funds:
- Promotional items like trucker hats and golf balls
- One-off giveaways with no tracking
- Generic materials not tied to sales conversations
- Tactics that are easy to execute but hard to measure
The result is a missed opportunity. The funds are used, but the business sees little return. Without a clear connection to revenue, these efforts rarely improve.
What Happens When Co Op Funds Are Used Strategically
The difference comes down to how the funds are applied.
Instead of treating co-op as a reimbursement tool, it becomes a way to build sales systems. That includes creating campaigns, sales tools, and messaging that align with how the distributor actually sells.
One example involved a targeted campaign built around safety products. By combining video, email, social, and physical sales tools, the distributor saw a 57 percent increase in product sales and significantly higher performance in targeted accounts.
What changes when co-op funds are used strategically:
- Marketing aligns with the sales process
- Tools support real customer conversations
- Campaigns focus on specific selling situations
- Results become measurable and repeatable
The key was not just the marketing. It was how the marketing supported the sales process. Each piece worked together to reinforce the message and guide the customer through the decision.
Why Most Sales Teams Are Missing the Right Tools
Many distributors operate with limited marketing infrastructure. In some cases, sales teams rely on outdated materials or basic documents created years ago.
These tools do not reflect the current positioning of the business or help sellers communicate value effectively. This creates a gap between what the company can deliver and how it presents itself.
When that gap exists, sales conversations become harder. Sellers are forced to fill in the gaps on their own, which leads to inconsistency and lower confidence in the field.
How Better Tools Change Sales Performance
When marketing is built around the sales process, the impact is immediate.
Clear messaging helps sellers explain value. Consistent visuals improve perception. Structured materials guide conversations and reduce friction during meetings.
In many cases, the biggest shift is internal. Sales teams feel more confident using tools that reflect their actual selling environment. That confidence changes how they present, respond to objections, and follow through.
Why Strategy Matters More Than Tactics
One of the biggest takeaways is that there is no single best use for co-op funds.
What works depends on the distributor. Their customers. Their sales team. Their go to market strategy.
Without that understanding, even well-designed campaigns can fail. In one case, a promotion that worked for one distributor failed completely for another because the sales team was not comfortable using it. Execution only works when it aligns with how the team actually sells. Strategy provides the context that makes tactics effective in real-world situations.
The Real Opportunity Behind Co Op Marketing
Co-op funds are not just a budget advantage. They are a way to build marketing and sales systems without adding cost to the business.
When used correctly, they can improve positioning, support the sales team, and create measurable growth. When ignored, they become a missed opportunity that competitors can take advantage of. This becomes even more important in competitive markets where differentiation is limited. Using available resources more effectively can create an advantage without increasing spend.
Where Co Op Marketing Actually Creates Value
If marketing feels disconnected from sales or if growth has stalled, the issue may not be budget. It may be how available resources are being used.
Co-op marketing is one of the few opportunities where businesses can invest in growth without increasing spend. The challenge is knowing how to use it in a way that actually supports the sales process.
When marketing becomes a tool for sales rather than a separate function, results begin to change.
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