Performance marketing is any advertising model where payment is tied to measurable results — cost per lead, cost per acquisition, revenue share — rather than flat media fees. It aligns agency and client incentives because agencies only earn when they deliver results. Performance marketing typically covers paid search, paid social, affiliate programs, and influencer campaigns with tracked outcomes. The risk: optimizing for tracked conversions at the expense of brand health and long-term demand creation.
For example, a performance marketing arrangement might pay an agency $500 per qualified demo booked — incentivizing the agency to optimize ads and landing pages for quality leads, not just cheap clicks.
We run performance-oriented campaigns for clients — all paid programs have defined CAC and pipeline targets that we track and are accountable for.
Related Terms
Relevant Cactus Services
We implement Performance Marketing strategies for B2B tech startups every day. Book a free 30-minute call to get a concrete plan for your situation.
Book a free strategy call →Fractional CMO
A fractional CMO is a senior marketing executive who works with multiple companies on a part-time or contract basis — providing strategic leadership without the cost of a full-time hire.
Embedded Agency
An embedded agency model means the agency team functions as an extension of your internal marketing team — not a vendor, but a partner with deep context, shared Slack channels, and attendance in team standups.
Retainer
A retainer is a monthly fee paid to an agency or consultant for ongoing services — buying a defined scope of work or number of hours each month.
OKRs (Objectives and Key Results)
OKRs is a goal-setting framework: each Objective is an ambitious qualitative goal, supported by 2–5 Key Results that are specific, measurable, and time-bound.
KPIs (Key Performance Indicators)
KPIs are the specific metrics used to measure performance against business goals.
Marketing Attribution
Attribution is the process of assigning credit to marketing touchpoints that contributed to a conversion or sale.