How Do You Run Co-Marketing With Another Local Business Safely?

By Bill Stilwell · Last reviewed October 16, 2026

The short answer

Co-marketing is when two businesses promote each other or a shared offer together. Before anything goes public, settle four things in writing: who owns the content, who has permission to use each name, logo, and photo, whether every claim is true and can be backed up, and who approves the final version. If either business is paid or gets something of value for the promotion, say so clearly in the piece.

What this means

Co-marketing can be simple: a shared flyer, a joint giveaway, a guest blog post, a combined booth at a home show, or a video where two owners talk about a project.

Say Maple Street Salon and a local wedding photographer make a “bridal day” package and promote it on both websites and social media. Before posting, they need to answer:

Ownership. Who owns the photos, the video, and the written copy? Can each business keep using them after the promotion ends?
Permissions. Does each side agree to the other using its name and logo? Did the bride in the photos agree to be in an ad?
Claims. Is “the most trusted bridal team in town” true and provable? Probably not, so it shouldn’t go in.
Approval. Who signs off on the final version before it goes out? Both owners.

Why it matters

Advertising claims must be true. The Federal Trade Commission (FTC) requires ads to be truthful and backed up. If your partner’s ad says something false about you, or you say something false together, both of you can be on the hook (see 11.3.1 Truthful Advertising Claims).
Paid relationships need disclosure. The FTC says endorsements from someone with a paid or other material connection should disclose it clearly, using plain words like “Ad” or “Sponsored.” Vague words like “partner” alone are generally not enough.
Photos and logos belong to someone. Using a photo you don’t have rights to, or a person’s image without permission, can lead to takedown demands and legal claims (see 11.1.12 Photo Permission).
Content ownership fights. Without an agreement, you may not be allowed to reuse a video you paid half for.
Your brand can drift. A partner’s design choices can make your name look different from everywhere else (see 8.4.7 Brand Consistency).

Who this applies to

Any business that promotes, or is promoted by, another business. That includes joint ads, shared social posts, guest articles, events, giveaways, and email swaps.

Pay extra attention if:

Money, free services, or other perks are part of the deal
The piece makes health, money, safety, or “best” claims
It shows customers or their homes
You share email lists or customer contacts. Consent rules apply (see 12.6 Communication Consent Records)

How to do it

Agree on the goal and the offer in writing, as part of your partner terms (see 14.7.3 Partner Terms and Tracking).
Decide who owns each piece of content, and whether both sides can reuse it after the promotion ends.
Get written permission to use each business’s name and logo. Use the logo files each business provides. Don’t stretch or recolor them.
Get written permission from any customer, employee, or member of the public shown in photos or video (see 11.1.12 Photo Permission). Use customer quotes only with permission (see 11.1.13 Testimonial Permission).
Check every claim. Remove anything you can’t prove, like “best,” “number one,” or “guaranteed,” unless you have real proof (see 11.3.9 Comparative Claims).
If either side is paid or gets something of value, add a clear disclosure at the start, in the same format as the content. For example, “Sponsored by Maple Street Salon.” In a video, say it out loud and show it on screen.
If the promotion uses email or text, make sure each business only contacts people who agreed to hear from it.
Send the final version to both owners. Get approval in writing, such as a reply email that says “Approved.”
Save the final version, the approval, and all permissions together.
After it runs, track results for both sides (see 14.7.3 Partner Terms and Tracking).

What proof to keep

Written content ownership and reuse terms
Logo and name use permission from the partner
Photo and testimonial permissions from every person shown or quoted
Proof for any claims in the piece
The final approved version and the written approval
Disclosure wording used

Keep them in one folder per campaign in your shared marketing files.

Common mistakes

Pulling a partner’s logo from the internet. Ask for the official file and permission to use it.
Using customer photos from a job without asking. Even if you took the photo, the customer didn’t agree to be in an ad.
Hiding the deal. “Proud to partner with” isn’t a clear disclosure if money changed hands.
Big claims nobody checked. Joint ads often grow bigger claims because each side assumes the other checked.
No approval step. A post goes up with a typo in the partner’s name or the wrong phone number.
Assuming you can reuse the content. Without a written agreement, ask first.

When to get help from a pro

Attorney: for paid co-marketing deals, health or money claims, giveaways and contests, or shared content you plan to reuse. Questions to ask:

Who owns this content, and what does our agreement need to say about reuse?
Do these claims and disclosures meet FTC and state rules?

Bill’s note

[Bill: add a short story or lesson here. For example, a co-marketing project between two clients that worked well, or one that caused problems because nobody approved the final version.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: the partner, the piece, and how ownership, permissions, claims, and approval were handled]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the published co-marketing piece and the approval email]
[Result so far:]

Questions people ask

What is co-marketing? Two businesses promoting each other or a shared offer together, through ads, posts, events, emails, or content.

Can I use another business’s logo in my ad? Only with their permission. Ask for the official file and use it as they provide it.

Who owns content we create together? Whatever you agree in writing. Without an agreement, ownership can be unclear, so settle it before you create anything.

Do I need to disclose a paid partnership in a post? Generally yes, if someone is paid or gets something of value for the promotion. The FTC says to use clear words like “Ad” or “Sponsored” where people will see them.

What should we approve before publishing? The final text, images, claims, names, logos, contact details, and disclosure. Get approval from both businesses in writing.

Audit check

Question: Before each co-marketing piece went live, were ownership, permissions, claims, disclosure, and approval all handled and recorded?
Pass looks like: A folder for each campaign with written ownership terms, logo and photo permissions, proof for claims, clear disclosure where needed, and written approval from both businesses.
Fail looks like: Logos or customer photos used without permission. Unproven “best” claims. Paid deals with no disclosure. No record of who approved the final version.
Evidence to collect: The campaign folder, the published piece, permission records, and the approval email.

Where this fits

Do this first: 14.7.3 Partner Terms and Tracking, 11.3.1 Truthful Advertising Claims

Do this next: 14.8.1 Google Business Profile Verification

Sources

Federal Trade Commission (FTC), "FTC's Endorsement Guides: What People Are Asking" (checked October 16, 2026)
Federal Trade Commission (FTC), "Endorsements, Influencers, and Reviews" (checked October 16, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.