Pay-for-Performance search engine marketing is where a marketing consultant or firm is only paid for inbound leads and revenue that come in as a result of their marketing.
Some SEO and PPC consultants have a Pay-for-Performance model. However, almost all high-end marketing firms will not agree to a Pay-for-Performance model, because there are too many factors that affect lead and sales volume that are outside of the control of the marketer. Another reason why many of the best marketers will not accept this type of contract is because it can provide negative incentives that can hurt the overall campaign, such as by emphasizing short-term leads and sales at the expense of long-term sales or new product opportunities that have little proven track record but strong long-term value. It is also detrimental to the ability to focus on “foundational” aspects of a marketing campaign, because foundational tactics lay the groundwork for future success but do not contribute to near-term lead goals.
This type of model is not conducive to forming a long-term “partner” relationship with a marketer that is the cornerstone of successful marketing campaigns.