Performance-based marketing is a strategic approach that aligns incentives between a company and its partners. It means that partners are compensated based on the measurable results they achieve, such as generating leads, driving sales or increasing customer retention. This model fosters a win-win relationship where both the company and its partners are motivated to deliver exceptional outcomes.

Performance-based marketing can take various forms, including revenue share, where partners receive a percentage of the revenue generated from the customers they bring in; lead generation fees, where partners are paid for each qualified lead they deliver; customer acquisition costs (CAC), where partners are compensated based on the cost of acquiring new customers; and recurring revenue share, where partners receive a portion of recurring revenue from the customers they refer.

By adopting a performance-based marketing approach, B2B SaaS companies can maximize partner engagement, reduce sales costs, improve return on investment (ROI) and foster strong partner relationships.