Performance marketing focuses on paying affiliates based on the performance they deliver, aligning incentives between merchants and affiliates. This approach ensures marketing budgets are spent effectively on measurable outcomes rather than impressions or brand awareness alone.
By emphasizing results, performance marketing encourages affiliates to optimize their strategies continuously and focus on driving valuable actions that contribute to business growth. It encompasses various models, including CPA, CPC, CPL, and CPS, allowing for flexible program structures that match business objectives.
Modern performance marketing incorporates advanced analytics, attribution modeling, fraud prevention, and optimization technologies to maximize ROI. In SaaS businesses, performance marketing often focuses on metrics beyond initial acquisition, including trial-to-paid conversion rates, onboarding completion, and customer retention indicators.