Pay-per-performance

Pay-per-performance is a business model where companies compensate individuals or organizations based on measurable outcomes rather than fixed payments. For example, in marketing, an advertiser may pay a content creator only when their efforts lead to specific results, like sales or leads. This approach aligns incentives, ensuring that payment is directly tied to the success of the work performed. It encourages efficiency and effectiveness, as both parties are motivated to achieve the desired results, benefiting from a shared interest in performance.