Performance Marketing is a method of interactive advertising which pays on a “performance” basis. Sometimes the term Affiliate marketing is used interchangeably, but they are not actually synonymous.
Performance Marketing pays out only on a completed action. Often the action is based on a sale (Cost Per Sale) or a lead (Cost Per Lead), but can also be other revenue models including Cost Per Download.
Most people think of Performance Marketing as being affiliate marketing, but affiliate marketing is just a subset, although large part of, the Performance Marketing community. Affiliate Marketing is generally a cost-per-sale, revenue sharing model where affiliates receive a portion of the sale of any product. However, much of the online advertising industry is focused on a performance basis, and many advertising banner networks, PPC networks and other platforms currently take performance based advertisements as part of their sales.