Spiffs Sales Incentives

Published on October 2, 2023 by Sawyer Middeleer

Spiffs Sales Incentives

In the ultra-competitive world of sales, keeping your team motivated and driven can be just as challenging as closing deals themselves. That's where sales incentives, and more specifically, SPIFFs (Sales Performance Incentive Funds), come into play. These incentives can ignite the competitive spirit within your sales team and drive short-term goals, but they also need delicate handling to align with overall business objectives without causing conflict or inconsistent sales behavior.

In this article, we explore what SPIFFs are, the key considerations for implementing them successfully, and how they fit into a broader strategic approach to sales management.

What Are SPIFFs?

SPIFFs or Sales Performance Incentive Funds are short-term incentives used by businesses to drive immediate sales results. Typically, they are offered as cash bonuses, but can also take the form of prizes, vacations, or other rewards. The concept is simple: encourage sales representatives to increase their efforts and focus on selling specific products or services by offering an additional, immediate incentive.

Unlike regular commission structures or other long-term incentive plans, SPIFFs are used to drive behavior over a more immediate timeframe. This could be for launching new products, targeting specific markets, or clearing outdated inventory.

The power of SPIFFs lies in their flexibility. They can be tailored to meet various strategic needs and to motivate different members of the sales team, from seasoned veterans looking for an extra challenge to new reps needing an early win to boost confidence.

Key Considerations for Implementing SPIFFs

While SPIFFs can be instrumental in boosting sales performance, they come with several considerations to ensure that they are successful and do not have unintended negative consequences.

Align with Business Objectives

SPIFFs should support broader business goals rather than just driving volume. It's crucial to align incentives with profitable products or strategic markets rather than simply moving the most units.

Communicate Clearly

Transparency and clear communication are vital to a successful SPIFF. Sales reps should fully understand what is required of them, how the SPIFF will be measured, and how rewards will be distributed.

Ensure Fairness

Fairness in the design of a SPIFF program is non-negotiable. The criteria for earning the incentive should be clear and achievable by all relevant members of the sales team. This includes considering the differences in territories, accounts, and potential in various market segments.

Avoid Channel Conflict

When working with a direct sales force and distribution partners or resellers, companies must avoid SPIFFs that may cause channel conflict. It’s important to consider how your incentives might affect partner relationships and customer satisfaction.

Manage SPIFF Length and Frequency

The length and frequency of SPIFFs can impact their effectiveness. Too short and they may not gain enough traction; too long and they may lose their urgency. Similarly, running them too frequently may lead to sales team expecting them and adjusting their sales activities accordingly.

Monitor and Adjust

As with any sales initiative, monitoring performance and being willing to make adjustments based on real-time feedback is important. Tracking SPIFF results can inform future incentives and highlight any sales behaviors that may need correcting.

Best Practices for an Effective SPIFF Program

To implement a SPIFF program effectively, businesses should adhere to some best practices:

Set Clear Objectives

What specific behaviors are you trying to encourage or results you seek to achieve? Whether it's upselling certain products, acquiring new customers, or breaking into a new market, the goals of the SPIFF should be unmistakable.

Define Eligibility and Rules

Who is eligible, what are the sales targets, and over what period does the SPIFF run? Defining the rules and eligibility upfront prevents any confusion or disputes later.

Offer Attractive Rewards

The rewards must be worthwhile for the effort required. While cash is often king, non-monetary rewards like extra vacation days, tech gadgets, or experiences can also be highly motivating.

Promote Constantly

A SPIFF can only energize your sales team if they are reminded of it. Leaderboards, progress updates, and continuous communications will help keep the momentum up.

Have a Clear Measurement System

Sales reps should be able to easily track their own progress towards earning SPIFFs. This transparency helps to drive motivation and ensures fairness in the program.

Review and Reflect Post-SPIFF

Once the SPIFF has concluded, take the time to review the outcomes. Did it achieve its goals? What was the ROI? How did it affect sales behavior and morale?

SPIFFs in the Context of a Larger Sales Strategy

SPIFFs should not be a standalone effort. They work best when integrated into a comprehensive sales strategy that includes training, regular incentives, ongoing coaching, and performance management. Sales leaders should consider how SPIFFs interact with overall compensation plans and how frequently they can and should be leveraged to avoid diminishing returns.

How Aomni Can Enhance SPIFFs

A platform like Aomni can aid sales leaders in executing SPIFFs by providing real-time data on account progress, actionable competitive insights, and personalized sales content. With these tools, reps can stay strategically armed and ready to tackle any challenges that SPIFF targets may present, ensuring that incentive programs are packed with just the right punch to drive results and growth.


SPIFFs are a tool in the sales leader’s arsenal to align short-term sales rep behavior with the company’s immediate goals. Executed wisely, they enhance motivation, drive sales performance, and can significantly contribute to hitting tough sales targets. The simplicity of SPIFFs belies the need for careful planning and execution, ensuring the program energizes the sales force and aligns with the business's long-term vision. When blended with smart technology tools provided by platforms such as Aomni, SPIFFs become an even more powerful mechanism to drive sales and business success.

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