Pay for Performance online marketing is a marketing strategy wherein you’ll only pay for a particular response or conversion. It’s entirely based on the performance and results, and most importantly your goals concerning your return on investment.
Here are three types of Pay for Performance marketing:
1. Affiliate Marketing
With affiliate marketing, you can choose your desired conversion and the rate or fee that you want to pay. Affiliate marketing is actually one of the original pay for performance strategies, wherein you get to offer an attractive affiliate program to publishers and not overpaying and hurting your ROI.
2. Pay Per Action Online Advertising
Pay per click advertising was believed to be a pay per action advertisement. This is not entirely correct because the advertiser is responsible for the conversion. However, there are PPC models and search advertising strategies that generates high ROI possibilities, and these are safe advertising choices when concerned about your ROI.
3. Lead Generation Programs
Lead generation programs offer advertisers qualified prospects for a “per prospect” fee. It will be the advertiser provider that will promote the business and the fees are charged for a genuine inquiry. The key here is that the providers deliver quality leads and this is what counts for pay for performance marketing.
Unlike other online marketing strategies, pay for performance marketing delves into tactics wherein effective results are expected. Online marketing usually does not give an assurance on good results. But at a time where recession is just at the corner and small businesses have it hard, pay for performance online marketing should not be thrown aside.