Performance based revenues are not based on the value of a product or service itself, but on the performance it delivers. The customers pays a certain amount based on a predefined performance indicator. Example: Rolls-Royce does not sell the aircraft engines themselves, but the hours of operation ("power-by-the-hour").

When and how to apply Performance-Based-Payment:

An example of a performance-based payment is an hourly maintenance program for your engine, aircraft, or anything else. The concept is straightforward: you pay a certain amount for each hour of flight on your aircraft, and these funds are applied to your future helicopter maintenance needs. The primary benefits of such programs, including Optima Aero's Optimal Power Support (OPS) hourly maintenance program, are primarily monetary. In lieu of a large cash outlay at the time of your engine overhaul, you will pay monthly for every hour flown. This will improve your cash flow and allow you to use your funds immediately on higher-yielding projects. In addition, with Optima Aero, you will save money on overhaul costs and gain access to our extensive knowledge. In addition, you will have access to our extensive inventory of parts and industry partnerships. The assurance that you are protected against any unforeseen event is provided at no cost.

Well-known companies that use this pattern are Unity and Fahrenheit 212.