Glossary/Agency & Industry/Performance-Based Compensation
Agency & Industry
Performance-Based Compensation
Agency pay tied partly to agreed results, such as sales or brand KPIs, usually as a bonus on top of a base fee.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
Performance-based compensation is agency pay tied partly to agreed results, such as sales or brand KPIs, usually as a bonus on top of a base fee. It aims to align agency incentives with client goals. Success depends on choosing fair metrics the agency can genuinely influence and agreeing how results will be measured.