What is performance marketing?

Performance marketing is a marketing approach that is becoming more and more popular. The interesting part is that with performance marketing, you only pay when you get results.

This could mean that you only pay if your ad brings in a new customer or at least a customer inquiry.

The most common example of performance marketing is affiliate marketing. Here, you pay a commission per conversion. A conversion could be a product purchase, a customer inquiry, or a meeting booking.

If you get relevant conversions and set your price correctly, it is a very reliable way to get value for your marketing budget.

Other examples of performance marketing

Affiliate marketing is, of course, not the only type of performance marketing. Here are some other good examples:

• Advertorials, where you pay per click or CPM (cost per thousand impressions)
• Google Ads, where you only pay per click
• Influencer marketing, where you give a percentage of the sales they generate

If you, as a business owner, are not already using performance marketing, it is very exciting to explore. The possibilities are endless, and with many of these channels, you have almost nothing to lose by testing them out.

In other words, your payment depends on performance.