page_title: Co-promotion
section_title: Cost
hierarchical_section_title: Co-promotion / Cost
caption_attribution_description: English: Illustration of costs
context_page_description: Co-promotion is a marketing practice that allows two or more companies to combine their sales force in order to promote a product under the same brand name and price with a single marketing strategy. It is considered as one of the two major forms of joint marketing. Co-marketing is the other form and these terms are often confused. It is made through an agreement which requires a lot of collaboration between the sales and marketing organisations of both companies. One of the partners usually has a licence to exploit the product and the other partner is the originator or licensor. It helps the less developed areas of a company to be covered by the partner company's strengths and therefore to expand the share of voice in the marketplace for a product. Through co-promotion, a collaborative strategy, the consumer attraction is increased. It is a way co-exploiting products.
context_section_description: At the beginning stage  the average up-front co-promotion payment could be up to $18m, with a potential royalty rate of 25%. At the accomplishment stage these payments has the probability to increase to $53m with a maximum average of royalty rates up to 31%. It is considered as an expensive option for in-licensers as the payments are high in contrast to co-marketing.
  However, this technique provides more long-term advantages because high payments has a better possibility to expand the target with combined sales force, thus providing advantages on a long-term basis for companies.
caption: This graph represents high total payments of co-promotion agreements compared to alternative licensing types.[7]
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