Start by adding spackle to smooth out the raised areas of your cooler. Smooth on with a spackle knife. Let dry.
While the cooler is drying, create templates for the indentation areas using white paper and a pencil. Cut out the templates.
Place the templates on the decorative paper and cut them out.
Cut out any monograms with scissors or a craft knife, punch out additional shapes to go on the cooler.
When the spackle is completely dry, use sandpaper to smooth the area. Wipe away any dust with a damp cloth.
Add a coat of Mod Podge to the back of the paper as well as to the corresponding area on the cooler. Place the paper down and smooth. Let dry.
Add a coat of Mod Podge on top of the area to seal it. Layer up images and design elements as desired. Let dry.
Completely coat the entire cooler with Mod Podge and let dry 24 hours before using.