A performance marketing budget represents the amount of money a company allocates to marketing efforts directly tied to measurable results, such as sales or leads. It differs completely from traditional marketing, where costs remain fixed. In performance marketing, businesses pay only for the actions they receive, such as clicks or purchases. Creating the right budget means balancing the amount you plan to spend on your marketing campaign with your desired outcomes. As campaigns progress, you can adjust the budget based on performance, ensuring that each dollar contributes effectively to meeting your goals.