Accounting For Co-Marketing Agreements

You`ve probably heard the concepts of co-marketing and co-branding – but what`s the difference? Is there one? One aspect of virtually every co-marketing campaign you need is a page of common goals. Companies involved in collaborative agreements could have a significant impact under the new guidelines, particularly if their current approaches do not meet the accounting required in the future. Partner companies generally work to promote a co-brand offer. As part of a co-marketing partnership, the two companies promote content or product and share the results of that promotion. On November 5, 2018, the FASB narrowed this gap by issuing an update to the 2018-18 accounting standards, which changes theme 808 for decades. The update contains pay-for-for-e billing instructions received by a member of the collaborative agreement. In any co-marketing relationship, you want to make sure that collaboration is mutually beneficial. Look at the tips on whether a partner is adapting well. But it`s not the only way to do a co-marketing campaign. Two partners could agree to organize an event together and spread the costs. Or on a smaller scale, partners can accept a number of host blog posts on sites on the other side.

Communication with your partner throughout the co-marketing campaign, if critical, but you`ll also want to finish debrief once the campaign is over. Although it usually makes no sense to create one project at a time with the same partner, it is possible to cooperate again in the future. The FASB finally decided not to implement a non-revenue accounting model. However, the new guide amends theme 808 to require a company to submit its accounting and evaluation method of these transactions in the image of the relevant accounting literature. If there is no appropriate analogy, the entity can use a reasonable, rational and consistent choice for accounting methods. Your co-marketing campaign is live and promoted – good job! Now it`s time to look back and see if your first efforts were successful. Each time, do successful co-marketing campaigns with our guide and models. Be clear in your message that the email is about your brand and your partner – your co-marketing efforts need to be clear, which means it`s obvious to all recipients that two companies are involved. E-mail is always one of the best ways to reach a large group of people at once – you can easily encourage recipients to participate in your co-marketing webinar or event, or download your content.

Webinars are often the go-to-art of co-marketing content. What for? Well, it`s pretty easy to find an expert willing to talk about the subject of his expertise for an hour. It is also a well-known format for educational materials.