For those individuals not quite familiar with the innovation of the digital landscape over the last few years this can be quite the challenge. In the simplest of terms here is how Performance Marketing works:

Have you ever told your friend to go see a movie because you liked it and thought they might enjoy it as well? You send a quick text raving about it to your friend and tell them to go the movie theater and see it! Turns out they liked it too! 

What about the restaurant that you recently went to that you just know your parents would love to check out. You call them up, let them know how amazing it was and they make a reservation for the next day.

Imagine if that movie theater or restaurant paid you for referring your friend or parents, that would be pretty cool right? This is the basic principal of Performance Marketing! There is an offering made available and something encouraging you to take advantage of it that in turn is compensated. Performance Marketing is something we encounter everyday, but for most of us, we haven’t been educated on how it works or what it accomplishes.

How Does Performance Marketing Drive Revenue Online?

Lets take the basic principle of Performance Marketing and apply this to online marketing.  Advertisers (think of the movie theater or restaurant from above) would provide an offering (the movie or food from the restaurant) for Networks and Affiliates (the person recommending people to see the movie or go to the restaurant) to drive traffic to.  Once a Network or Affiliate drives traffic to the offering and registers a SALE, the Advertiser will pay the Network or Affiliate a bounty for the Consumer that they were responsible for sending. Of course, Performance Marketing can be simple or complex depending on how marketers leverage all of the online channels available to them. If you have any further questions regarding performance marketing or how it works, email me directly!