Sara, my manufacturer just sent over a new co-op marketing opportunity and it sounds like a great deal. They’ll cover 50 percent of the cost. But I’ve been burned before by spending money on things that didn’t move the needle. How do I know if it’s actually worth it?
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Here’s the deal. Co-op feels like free money until it doesn’t help you move a single thing.
Just because something is 50 percent off doesn’t mean it’s the right fit for your dealership. If a co-op program isn’t helping you hit your lead goals, it’s not helping. And the last thing you want is to be stuck in a year-long contract that doesn’t bring in results.
Before you say yes to the next offer that hits your inbox, run it through these five questions.
1. What’s my cost per lead?
Marketing has one job. Generate leads. Not feelings, not vague awareness. Just leads.
If the vendor can’t give you a ballpark number for what each lead will cost, or they dodge the question altogether, be careful. You deserve to know what you’re paying for.
2. Will this actually bring in leads or just “awareness”?
Awareness isn’t bad, but your sales team can’t follow up on good vibes. They need actual names, phone numbers, and emails. If a co-op program is just about impressions and branding, it’s not likely to move the needle in the short term.
Ask if it’s a lead generation campaign or a brand awareness campaign, and make sure you know which one your dealership needs right now.
3. Is this program tailored to my dealership or just Dealer Template #47?
If 200 other dealers are running the exact same post, ad, or mailer, it’s just noise.
Ask if you can add your branding, swap out photos, and localize the messaging. No offense to stock beach photos, but if your dealership is in the Midwest, palm trees probably aren’t helping your cause.
4. Can I stop or adjust if it’s not working?
Flexibility matters. Don’t sign on for something that doesn’t give you an exit ramp.
Ask about the cancellation policy before making a commitment. If there’s no way to pivot, pause, or stop altogether, you might be stuck paying for a year-long marketing campaign that even your mom wouldn’t click on.
5. Would I spend the money if they weren’t covering half?
This is your gut check. If the manufacturer wasn’t offering to split the bill, would you still spend the money?
If your answer is “absolutely not,” then don’t do it. A bad deal at half price is still a bad deal.
And here’s one last thing.
Make sure the co-op opportunity fits into what you actually need in your dealership.
Want help making smarter co-op decisions? In the Dealership Marketing Master Class, we walk through how to set real lead goals, build a plan that works, and actually make co-op programs support your growth instead of just burning your budget.
