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The Paid Media Pivot: Why Brands Are Shifting to Performance-Based Partnerships

The Paid Media Pivot Toward Performance-Based Partnerships

Paid media has long been the backbone of many marketing strategies. But for brands facing stalled campaigns or diminishing returns, traditional ad investments can feel like taking two steps forward and two steps back. If you’ve struggled with overcoming a growth plateau, you aren’t the only one. Many businesses are rethinking how they allocate budgets and looking for smarter ways to drive measurable outcomes. That’s where performance-based partnerships come in. By aligning spend with results, brands are seeing renewed momentum and achieving scalable, sustainable growth. 

Courtney Rieker, Director of Influencer Brand Management at Acceleration Partners, described the shift in strategy this way: “Taking a purely transactional approach to creator partnerships just is not enough to stand out anymore. We’ve now identified that the real growth engine is loyalty—building relationships that are rooted in trust and long-term value.” 

This pivot doesn’t just reduce risk; it also encourages stronger collaboration between brands and their partners, leading to richer campaigns and more consistent results. Learn more about what performance-based marketing means, why it’s getting popular, and how brands can leverage influencer and affiliate programs together to boost results. 

 

What Is Performance-Based Marketing

So, what is performance-based marketing? At its core, performance-based marketing strategies leverage a results-first approach. Instead of paying for impressions or exposure, brands only pay when a defined outcome is achieved. This could mean:

  • An online retailer compensates affiliates only for completed sales.
  • A travel brand rewarding influencers for booked trips rather than video views.
  • A subscription service pays partners based on free trial sign-ups.
  • A fitness app crediting partners only when users download and subscribe to a premium membership. 
  • A local service provider compensates referrers for each appointment booked through a specific link. 

This model provides benefits for both brands and their partners. Brands gain cost efficiency, while partners have the opportunity to maximize earnings by driving meaningful results.

Kristen Hayes, Influencer Marketing Manager at Newton Baby, emphasized the importance of trust in these relationships: “If you can develop a huge community of people that would go to bat for your brand and your products, that’s always the goal… People want to work with people who are going to take care of them.”

By fostering trust and loyalty, brands can move beyond one-off campaigns and instead build long-term momentum, which is an essential factor in any affiliate program case study.

 

Why Performance-Based Partnerships Are Gaining Momentum

Performance-based models are gaining traction across industries because they deliver flexibility, scalability, and accountability. Business growth case studies show that they can help with:

  • Cost control: Instead of paying for impressions or brand awareness campaigns that might not convert, brands only pay when there is a tangible outcome, such as a completed sale, sign-up, or lead. This ensures every dollar is tied to results. 
  • Risk reduction: Without the need to make a large upfront ad purchase, brands can test out campaigns with less risk and scale only what shows success. This helps eliminate some financial uncertainty and reduce spending. 
  • Scalability: These programs are highly adaptable, letting companies start with a small number of affiliates or partners and scale to hundreds across different categories and regions quickly and cost-effectively. 
  • Data-driven insights: Built-in tracing tools offer real-time performance data, such as conversion rates and profit per partner. This provides transparency and direction to adjust campaigns as needed and optimize ROI over time. 
  • Stronger relationships: Because both brands and partners benefit from the same achievements, this model encourages collaboration and trust. Partners are motivated to produce high-quality work that targets the right audiences, while brands benefit from providing clear communication, adequate compensation, and commitment to long-term loyalty. 

Gregg Coffman, SVP of Finance & Operations at Select, captured this balance well: “When creators feel like they are treated like a true partner, you see the success. It’s collaboration, communication, and mutual respect that sustain long-term results.” 

As more brand strategy and growth teams face pressure to prove ROI and push ahead of competitors, performance-based partnerships are taking the lead and replacing traditional media in many marketing mixes. If you take lessons from successful companies, the results show how this shift can help companies break free from stagnant performance. 

 

The Role of Performance-Based Influencer Marketing 

Influencer marketing has grown into a $30+ billion industry, but not all campaigns deliver equally. The difference in results often comes down to whether brands treat creators as true partners or if they’re valued like ad space.

Performance-based influencer marketing ensures compensation aligns with tangible results shown in sales, sign-ups, or engagement milestones. This helps ensure that every dollar of your marketing investment is contributing to growth. Here are some key benefits:

  • Authenticity: Creators share products they genuinely believe in, resonating more with audiences.
  • Loyalty building: Long-term partnerships first foster trust between brands, creators, and consumers.
  • Transparency: Clear KPIs make expectations easy to manage on both sides.
  • Flexibility: Incentives can be monetary, experiential, or tied to specific performance tiers.

Courtney Rieker noted the importance of open dialogue: “It’s about working together and really identifying where we can do things differently. Finding a way that works for everybody is really the way to sustain long-term.” 

So what’s the key takeaway? Influencer marketing succeeds when it shifts from traditional transactional campaigns to collaborative, long-term partnerships that drive growth on both sides.

 

Performance-Based Affiliate Marketing: A Winning Strategy for Brands

Rising costs, ad fatigue and tightening budgets are prompting companies to rethink old strategies. Traditional media often offers limited accountability as brands pay upfront without knowing what the outcome will be. In contrast, performance-based models tie investments directly to measurable actions such as clicks, leads, or purchases. This can help protect budgets, maximize your spend and reduce the time spent testing different strategies. 

Affiliate marketing is one of the most established performance-based models, and it continues to evolve. By rewarding partners for conversions rather than exposure, brands can scale quickly and efficiently. For companies looking to prioritize growth and diversity, performance-based affiliate marketing programs can be exactly what’s needed to start building momentum again. 

 

Frequently Asked Questions 

Still thinking about what a performance-based marketing strategy would look like for you? Review answers to these commonly asked questions: 

How do I choose the best performance-based marketing model for my brand?

Start by defining your main goals, such as driving sales, generating leads, or boosting sign-ups, and choose a model that rewards partners for achieving those outcomes. Consider your budget, industry, and target audience to match the right partner incentives with results that matter. It’s also important to look for flexibility, enabling your strategy to scale alongside your business and adapt to market shifts. 

What are the risks of relying solely on performance-based marketing

Depending solely on this model can limit brand awareness, reduce control over brand messaging, and create too much reliance on third parties. It’s often best to find a balanced mix that can fortify your marketing efforts. 

How can I track the performance of influencers and affiliates in real-time?

You can monitor performance through tracking programs or affiliate dashboards that monitor clicks, conversions, revenue and more as it’s happening. Real-time data allows you to make quick decisions and hold influencers and affiliates responsible for consistent results.