How to Make Money with Co-branding

You might think Co-Branding is New concept to the market. But it is not. It dates back to the '80s. Co-Branding is like a Bond between two businesses. It may be a Service-based or Product based. 

For Example, you and I agree to promote each other's blog on each other's blog, then it is considered as a co-branding. Confusing? It's okay. I'll explain how. 

Let's assume you're into the "Health and Fitness" Industry, and I'm into the "Food and Nutrition" Industry, then, we both agree to promote a combination of our services. Like I was a Food and Nutrition expert will provide food tips and you as a fitness expert will help on the health side. So if we both join our hands agree to promote our combo pack of Heal and Food then it is Co-Branding. 

What is Co-Branding? 

You and I would have come across this kinda stuff regularly in our life. For example, if you drive your vehicle to a petrol station, you might get a car wash or free air check-in your tires. This is a co-branding. 

If you're in a Supermarket you might get a bunch of stuff wrapped into one package. All of these are different companies' products. But they are agreed to do co-branding and co-marketing. 

You can relate Co-Branding to a marriage. In real life, opposite genders get married. Here in business, two different brands, are married together. What is mean to say is that, in the business world, if two brands agree to do co-branding/marketing for mutual benefits. 

Let's take Apple and Nike

Apple & Nike

By far this is one of the most successful co-branding strategies that was followed by both Apple and Nike. By doing this co-branding/marketing both gained a lot of exposure to each other customers. Here Nike's main focus was to get apple customers and for Apple to get exposure to its new Apple Watch for the Nike customers. 

Now you know the importance of Co-Branding right. It is a win-win strategy that will help anyone. But you need to be careful while selecting a co-branding partner. 

It may be a Product base or service-based. If the Partner is as good as you're then this kinda strategy works really well. 

If you want to know more about Co-Branding check out this article on Lexology


Let's have a look at the definition of co-branding. 


The Co-Branding is the marketing strategy wherein two or more well-known brands combine to facilitate the sale and marketing of a joint product


Co-branding is a marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance


Co-branding is a marketing strategy that involves strategic alliance of multiple brand names jointly used on a single product or service.

My Thought: 

Mutual agreement between 2 or more parties, who agreed to promote each other product or create an entairly new product to their customers. 

How does Co-Branding Work?

Co-Branding is like a marriage between two. If the marriage needs to be successful, both the partners need to be on the same page. Just like that Co-Branding works. Let me explain, how. 

Do you remember that Jump from the Helium balloon, by Felix, in 2012?

Red Bull SkyDive

This is another most successful Co-Branding tactic by Red Bull and GoPro. Check out the video.

Here Red Bull and GoPro are the clear winners. Where Red Bull represents Strength and enthusiasm and to do new things. Whereas GoPro meant to capture each and every moment of our life. Both gained a significant market share after this successful skydiving. 

red bull and gopro

Here GoPro was relatively new to the market and the Red Bull is old with a strong customer base. But both are on the same page, which is for "Young" and "Enthusiast" people. 

Just like that, you can do your Co-Branding as well. Let's take, you run a blog on DIY tools. You can Co-brand with any other tool manufacturers. Agree to promote "only" products on your blog, then they will agree. 

While selecting the partner you need to be very careful. If you select the wrong partner you might face really bad days. 

Now let's find out the Advantages and did-advantages of Co-branding. 

Advantages and Disadvantages of Co-Branding

Let's have a look at the following advantages and Dis-Advantages. 

We'll Start with Advantages and then go into dis-advantages. 

Advantages of Co-Branding:

Here is the list of advantages of co-branding that you need to know before thinking of Co-Branding.

1. More Market Exposure: 

Apple has its own set of loyal customer base and Nike has its own set of customers. If we're able to combine both then we end up with a larger customer base. 

It may be New or old product. In this case, Apple launched a new wearable smartwatch, focused primarily on health cautious people. Especially working out and running people. 

With a larger customer base, each other can focus on more and more customers, rather than focusing on the onset of customers. 

2. Cost of reach is Less

Here the cost of Reach is fewer means, the price it takes to reach to the end customer is less. Which means, Both the brands have their own set of customer base and if we combined both the customer bases we end up with much larger customers. 

So the cost of reaching the customer is very less. This means both the brands no need to spend more money on advertising or on marketing. With a little budget, you can reach a larger audience base much faster and more effective way. 

3. Create Leverage

By Co-Branding, both the companies want to leverage on the customers and on the Cost that they are willing to spend for acquiring new customers. 

For example, take GoPro and Red Bull. Here GoPro was new to the market. So what they do? They teamed up with a larger and well-established firm, "Red Bull". After that, they can attract the customers of Red Bull to their own product. 

4. Shared Knowledge

Here the like-minded people would eat each other. This means the talent that you end up with is huge. So what do you do, leverage such talent? Yes, You bet you do. 

 For example, you had a restaurant, and you agreed to do Co-Branding with Coke or Pepsi. What they do, they might give you some advice to sell more of their stuff. In return, you will be rewarded with more and more customer time to spend hours. With this, the customers are more likely to buy more of your own stuff. 

Yes, this a Long game. 

5. Improved Brand Reputation

With Co-Branding, you can build stronger and more reliable fans. What I mean to say is that by leveraging this marketing strategy you eventually end up with a larger and more reliable customer base. Where you get the opportunity to sell more. 

If you can team up with a well-established firm/Blog then your chances are more and more. You get the larger brand following. 

Now we know what are the major advantages are let's find out the disadvantages. 

Disadvantages of Co-Branding:

"Co-Branding is like walking on a sward. As long as you and your brand partner are good then you can win the war. But if anyone of you tries to outrun on others, this won't work". 

1. Dent in shared Reputation. 

Let's pretend, you invented a new Infrared lens, and you teamed up with Apple. If the product is working fine then it is a win-win, but if the lens failed to keep up the promise, then there will be a serious dent in the Reputation of both the companies. 

You need to be really, really very care full while selecting a Co-Branding partner. 

2. Financial Misunderstanding

IF there are any kind of financial understandings, like a shared budget for a campaign or for product development, then you need to stick to it. You can not go back. 

If there are any financial mistrust or misspent need to be resolved ASAP. If you drag it, this will affect both the companies reputation internally and externally. 

3. Not able to Keep up

If any of the brand partners are not able to keep up to the expectations of others, then this won't wor as effectually as it might seem. 

It is like Sand and Cement. Too much sand will spoil the construction and too much cement will cost more than it is required. 

You need to understand the capability of each other. Underestimating or overestimating each other will be a serious mistake in the long run. It is not good for business and for the customers. 

Now comes the real question How to make money with Co-Banding?  Let's have a look into it. 

How to Make Money with Co-branding 

By this point, you would have known what is Co-Branding is and how this works, right. Let's figure out how to make money out of it. 

Note: This is from the Blogging Point of view, not from the "Product" point of view. 

Actually, there are 2 ways you can make money with Co-Branding. One is by "Promoting" the other is putting your service/Product with others. 

Let's start with "Promoting". 

1. Promoting

This is a little easier option when you compare with the other. Because you don't need to create a new product. Which means lesser efforts. 

Let's take Fitness Blog. Assume you are the owner of the blog. You don't have the resources or larger pile of cash to manufacture your own set of fitness products. So what do you do? Team up with any of the fitness product companies. 

By teaming up you can agree to Co-Brand with that company and you'll write blogs only for those products. You can act like a marketing person. Where you'll be internet face for that particular brand.

Here you won't be selling any product, but you'll be CO-Branding that particular brand. 

2. Own Product

This is a little harder option when you compare with the promotion. Because you need to create a product/Service. Which means lesser efforts. 

Let's take Apple and AT&T. AT&T is a telecom provider in the USA. Here the Apple is a Product, but AT&T is the service provider. 

Apple Co-Branded with AT&T as a telecom provider. You definitely need the internet/Telecom service to work on. This means your mobile won't work without the internet. So you need AT&T. 

I know this is a little off bit example. 

Let's take the Fitness as an example. Where you have a blog, that runs only on fitness. You can Co-Brand with any of the fitness brands. You can write a book or a video service and you can agree to promote that brand in it. 

Here you're co-branding with the fitness company, and this is a win-win situation. 


So, are you planning to go after Co-Branding? That's Good. But you need to be very careful while selecting the partner and take a calculated risk.