There are various forms of marketing that you should really think about whether you are a business owner or a marketer yourself. Certain forms of marketing are better suited for certain companies so some work more effectively for others. Of all the forms of marketing currently available, one that doesn’t get as much attention but definitely deserves it is performance marketing.

What Is Performance Marketing?

By the name itself, it’s apparent that this form of marketing is all about performance. And as the marketers at say, performance marketing is when an advertiser (also referred to as the merchant), pays the marketing partner or companies (also referred to as the affiliate) whenever a specific action is made on their end. The actions include clicks, sales, and even leads from the affiliate’s platform.

Performance Marketing vs. Affiliate Marketing

At a glance, performance marketing has a ton of similarities with affiliate marketing as people tend to interchange the two practices regularly. Although both are basically the same principle, the key difference between the two is the terms and conditions through which affiliates are able to generate their profit.

In affiliate marketing, affiliates are mostly paid by the merchant after a sale or a download is made. In performance marketing, however, the payment structure will depend on the deal struck between both parties involved. You can basically pick a structure that suits your needs. The structures are usually:

  • Pay-per-acquisition: payments made after specific actions are taken such as sales, form completions, etc.
  • Pay-per-sales: payments are made only for sales that are made through advertisements.
  • Pay-per-download: payments are made for app installations made through advertisements.
  • Pay-per-leads: payments are made when the merchant is able to get new customers or sign-ups to mailing letters as a result of an ad.

What Makes It Special

For up-and-coming businesses, marketing strategies that are performance-based or those that give immediate results are ideal. Performance marketing has a lot of similarities with affiliates and one of those is that the affiliates are the main beneficiaries of the program. As such, you can earn extra on the side if you are an affiliate.

Another similarity is that you don’t have to spend a dime on performance marketing. In fact, it’s the affiliate that will do most of the work for your end. They’ll supply the marketing materials, they’ll handle the financial responsibilities, and much more. All you have to do is make it so that your platform is able to highlight these materials.

As reported by, one reason why some affiliates prefer performance marketing over affiliate marketing is the freedom of choice. Affiliates aren’t limited to one or two ways to get paid. Performance marketing gives them the opportunity to pick a payment structure that’s suited for them which is great.

Performance marketing may not be as popular as other forms of marketing but there are a ton of merits that go with it. If you want your business to make a little extra on the side while making connections with larger companies, then performance marketing might just be what your business needs.