{"id":38945,"date":"2023-04-21T13:24:55","date_gmt":"2023-04-21T13:24:55","guid":{"rendered":"https:\/\/www.engagebay.com\/blog\/?p=38945"},"modified":"2025-04-25T13:39:51","modified_gmt":"2025-04-25T13:39:51","slug":"what-is-a-sales-spiff","status":"publish","type":"post","link":"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/","title":{"rendered":"What Is a Sales SPIFF? The Game-Changing Motivator for Sales Teams"},"content":{"rendered":"<p>The sales world has lots of slang terms, and one of them is SPIFF, a backronym. It\u2019s sometimes spelled as spiff, all lowercase. Another nickname for a spiff is a spiv.<\/p>\n<p>You don\u2019t want to be left scratching your head at your next sales meeting if someone brings up a SPIFF, right? Of course not! If so, make sure you read this little guide.<\/p>\n<p>In it, we\u2019ll answer the question: What is a sales Spiff? We&#8217;ll also explain where sales SPIFFs come from, how they\u2019re different from commissions, and how to start your own SPIFF program, complete with reward ideas and dos and don\u2019ts.<\/p>\n<p>Keep reading!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#What_Is_a_Sales_SPIFF_Anyway\" >What Is a Sales SPIFF, Anyway?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Where_Do_Sales_SPIFFs_Come_From\" >Where Do Sales SPIFFs Come From?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#How_Is_a_Sales_SPIFF_Different_Than_a_SPIV_What_About_SPIFF_vs_Commission\" >How Is a Sales SPIFF Different Than a SPIV? What About SPIFF vs Commission?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#SPIFF_vs_SPIV\" >SPIFF vs SPIV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#SPIFF_vs_Commission\" >SPIFF vs Commission<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#What_Are_the_Benefits_of_Sales_SPIFFs\" >What Are the Benefits of Sales SPIFFs?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Help_Your_Company_Achieve_More_Sales_Goals\" >Help Your Company Achieve More Sales Goals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Keep_Your_Sales_Team_Motivated\" >Keep Your Sales Team Motivated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Increase_Morale\" >Increase Morale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Better_Productivity\" >Better Productivity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Maintain_Customer_Satisfaction\" >Maintain Customer Satisfaction<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#How_Do_You_Start_a_SPIFF_Program_Dos_and_Donts\" >How Do You Start a SPIFF Program? ( + Dos and Don\u2019ts)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_1_%E2%80%93_Determine_You_Goals\" >Step 1 \u2013 Determine You Goal(s)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_2_%E2%80%93_Figure_Out_How_Sales_Employees_Can_Achieve_the_Goals\" >Step 2 \u2013 Figure Out How Sales Employees Can Achieve the Goal(s)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_3_%E2%80%93_Decide_on_the_Reward\" >Step 3 \u2013 Decide on the Reward<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_4_%E2%80%93_Choose_the_Sales_Reps_Who_Can_Participate\" >Step 4 \u2013 Choose the Sales Reps Who Can Participate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_5_%E2%80%93_Set_the_Budget\" >Step 5 \u2013 Set the Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_6_%E2%80%93_Launch_the_SPIFF_Program\" >Step 6 \u2013 Launch the SPIFF Program<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Step_7_%E2%80%93_Monitor_Results\" >Step 7 \u2013 Monitor Results<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#5_SPIFF_Program_Reward_Ideas\" >5 SPIFF Program Reward Ideas<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Memberships_or_Subscriptions\" >Memberships or Subscriptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Offsite_Rewards\" >Offsite Rewards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Entertainment_and_Travel\" >Entertainment and Travel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Gift_Cards\" >Gift Cards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Cash\" >Cash<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_a_Sales_SPIFF_Anyway\"><\/span><span style=\"color: #339966;\"><strong>What Is a Sales SPIFF, Anyway?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Okay, so let\u2019s clear the air and explain what a SPIFF is. It\u2019s an acronym for Sales Performance Incentive Fund. Well, technically, it\u2019s a backronym, a type of acronym created to spell out a catchy word. In this case, it\u2019s SPIFF.<\/p>\n<p>If the backronym doesn\u2019t clear it up, a SPIFF is a bonus made on a sale. For example, if your sales team sold 1,000 products in the last sales quarter, they\u2019d receive a reward for it.<\/p>\n<p>That reward is usually financial (like cash), but it can be anything from a vacation to a prize.<\/p>\n<figure style=\"width: 400px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/media2.giphy.com\/media\/ce7lBhVh8YIFy\/giphy.gif?cid=ecf05e4740r3595gzmlt1wyagxhtkqo6ccq7orqouo6j0xlp&amp;rid=giphy.gif&amp;ct=g\"><img decoding=\"async\" src=\"https:\/\/media2.giphy.com\/media\/ce7lBhVh8YIFy\/giphy.gif?cid=ecf05e4740r3595gzmlt1wyagxhtkqo6ccq7orqouo6j0xlp&amp;rid=giphy.gif&amp;ct=g\" alt=\"Chris Pine Money GIF\" width=\"400\" height=\"224\"><\/a><figcaption class=\"wp-caption-text\"><em>Giphy<\/em><\/figcaption><\/figure>\n<p>SPIFFs put sales teams to work, and they\u2019re motivated to complete the work because they know there\u2019s something great in it for them if they do.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-quota\/\">Read also: Sales Quota 101: What It Is and Why It Matters to Your Business<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Where_Do_Sales_SPIFFs_Come_From\"><\/span><span style=\"color: #339966;\"><strong>Where Do Sales SPIFFs Come From?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Where did the sales SPIFF as we know it come from? The first known use of the term spiff dates to 1859, when the term appeared in a slang dictionary.<\/p>\n<p>At the time, a spiff had a very different meaning. It referred to \u201cthe percentage allowed by drapers to their young men when they effect sale of old fashioned or undesirable stock.\u201d<\/p>\n<p>By 1890, the term evolved yet again, and its definition changed in kind. By then, a spiff referred to marking up the cost of a clothing item that wasn\u2019t the most recent fashion to make it seem more desirable to the consumer.<\/p>\n<p>A definition of spiff that appeared in the Oxford English Dictionary used it to describe a smart-dressed, dandy person. The word spiffy, which some people still use today, could have evolved from that.<\/p>\n<p>Spiff has also been used as a shorter-handed version of the word specific.<\/p>\n<p>It wasn\u2019t until the late 1940s that the term spiff as we know and use it today was introduced. At the time, employees in the electronic goods field who sold a lot of products received prizes known as spiffs.<\/p>\n<p>The acronym evolved from there. Although technically, it should have one F and not two, the reason SPIFF has two Fs in the acronym is likely to hold it truer to the original spelling of spiff.<\/p>\n<p>That\u2019s why it\u2019s a backronym, folks!<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-champ\/\">Read also: The Sales CHAMP Framework and How It Can Help Your Business<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Is_a_Sales_SPIFF_Different_Than_a_SPIV_What_About_SPIFF_vs_Commission\"><\/span><strong><span style=\"color: #339966;\">How Is a Sales SPIFF Different Than a SPIV? What About SPIFF vs Commission?<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_22848\" aria-describedby=\"caption-attachment-22848\" style=\"width: 525px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/05\/sales_intelligence-1.jpg\"><img decoding=\"async\" class=\"size-full wp-image-22848\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/05\/sales_intelligence-1.jpg\" alt=\"sales deal\" width=\"525\" height=\"350\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/05\/sales_intelligence-1.jpg 525w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/05\/sales_intelligence-1-300x200.jpg 300w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/a><figcaption id=\"caption-attachment-22848\" class=\"wp-caption-text\"><em>Source: Pexels<\/em><\/figcaption><\/figure>\n<p>Now that you understand the basics of sales SPIFFs, let\u2019s expand on the definition with some comparisons.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SPIFF_vs_SPIV\"><\/span><span style=\"color: #993300;\"><strong>SPIFF vs SPIV<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How is a spiff different than a spiv? Simple \u2013 it isn\u2019t!<\/p>\n<p>The two terms both refer to an incentivizing bonus given to <a href=\"https:\/\/www.engagebay.com\/blog\/sales-call\/\">salespeople who close more deals<\/a> than the other reps on their team.<\/p>\n<p>Spiff is obviously the more popular of the two terms, as it became acronymized, while SPIV did not.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SPIFF_vs_Commission\"><\/span><span style=\"color: #993300;\"><strong>SPIFF vs Commission<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Now, there is indeed a difference between a spiff and a commission.<\/p>\n<p>When salespeople receive a commission, they get a cut of the sale as a percentage of around 20 or 30 percent. This isn\u2019t a single-time payment but a consistent one they can count on.<\/p>\n<p>A spiff is a single-time payment made if a sales rep achieves a financial goal for the company. While a sales rep certainly has the opportunity to earn more rewards if they keep selling well, spiffs aren\u2019t ongoing in the same way as a commission.<\/p>\n<p>So which is better, a spiff or a commission?<\/p>\n<p>Spiffs are still more advantageous than commissions to many salespeople for a few reasons.<\/p>\n<p>Primarily, it\u2019s because they receive an immediate reward for the hard work they\u2019ve put in.<\/p>\n<p>If you sweat outside all afternoon doing yard work, you don\u2019t want that cold glass of lemonade days or weeks from now. You want it right now. It\u2019s sweeter because you just earned it.<\/p>\n<p>Further, it\u2019s often easier for a company to issue a spiff than to pay out a commission. The company doesn\u2019t have to track sales on nearly as long-term of a basis.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-blitz\/\">Read also: Sales Blitz Definition, Example, and Strategy<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_the_Benefits_of_Sales_SPIFFs\"><\/span><span style=\"color: #339966;\"><strong>What Are the Benefits of Sales SPIFFs?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_20165\" aria-describedby=\"caption-attachment-20165\" style=\"width: 1080px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing.jpg\"><img decoding=\"async\" class=\"size-full wp-image-20165\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing.jpg\" alt=\"sales enablement ownership\" width=\"1080\" height=\"608\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing.jpg 1080w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing-300x169.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing-1024x576.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing-768x432.jpg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/03\/sales_and_marketing-595xh.jpg 595w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/a><figcaption id=\"caption-attachment-20165\" class=\"wp-caption-text\"><em>Source: Unsplash<\/em><\/figcaption><\/figure>\n<p>Sales SPIFFs\u2013and in that regard, SPIFF programs\u2013can be highly advantageous for businesses eager to maximize their sales. Let\u2019s review some perks of incorporating a SPIFF program into your business structure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Help_Your_Company_Achieve_More_Sales_Goals\"><\/span><span style=\"color: #993300;\"><strong>Help Your Company Achieve More Sales Goals<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Has your company only sluggishly achieved sales goals before, and you now wish to pick up the pace? Introduce a SPIFF program!<\/p>\n<p>With the kind of dangling carrot that a SPIFF reward provides, your sales reps will begin smashing <a href=\"https:\/\/www.engagebay.com\/blog\/sales-goals\/\">sales goals<\/a> left and right like never before.<\/p>\n<p>In turn, this allows your company to meet its <a href=\"https:\/\/www.engagebay.com\/blog\/sales-quota\/\">sales quotas<\/a> for the week, month, quarter, or year. As your income levels grow, you can expand your company, introducing new products and services to keep you on the cutting edge.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Keep_Your_Sales_Team_Motivated\"><\/span><strong><span style=\"color: #993300;\">Keep Your Sales Team Motivated<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When a sales team underperforms, <a href=\"https:\/\/www.engagebay.com\/blog\/manager-roles-and-responsibilities\/\">sales managers<\/a> might assume it\u2019s because the reps don\u2019t want to work or don\u2019t know how to sell. While those can certainly be contributing factors, sometimes, a salesperson just doesn\u2019t feel motivated.<\/p>\n<p>Sales is a face-paced, cutthroat job. A promising rep can have their fire burn out from all the hard work and monotony.<\/p>\n<p>They need a figurative kick in the pants, and a sales SPIFF can be exactly that. Knowing they\u2019ll receive some sort of reward for their hard work will surely make them eager to work hard again and again.<\/p>\n<p>After all, the sales SPIFF model allows employees to receive rewards whenever they do their best work. This can result in long-term motivation or at least bursts of renewed motivation when employees need it most.<\/p>\n<p><em>\ud83d\udc49Ready to optimize your sales lead management? Uncover the top strategies in our <a href=\"https:\/\/www.engagebay.com\/blog\/sales-lead-management\/\">extensive guide<\/a>! \ud83c\udfc6<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increase_Morale\"><\/span><span style=\"color: #993300;\"><strong>Increase Morale<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Morale is a huge factor in retaining employees and reducing the rate of turnover. All companies should want to hold onto their sales employees for as long as they can.<\/p>\n<p>It\u2019s not only that keeping the same reps produces consistent results month after month. You can save time and money you\u2019d have to spend interviewing, hiring, and onboarding employees.<\/p>\n<p>The reps who receive rewards through your company\u2019s SPIFF program will want to stay with the company to continue receiving rewards. The employees who haven\u2019t yet gotten rewards will hear about the reps that do and feel motivated to work even harder.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Better_Productivity\"><\/span><span style=\"color: #993300;\"><strong>Better Productivity<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When sales employees do their best work consistently, they do more than benefit a company\u2019s bottom line. They also improve the productivity of the business as a whole.<\/p>\n<p>As we mentioned, more sales allow companies to introduce new products and services. The same superstar sales team members will sell those products or services, <a href=\"https:\/\/www.engagebay.com\/blog\/lead-funnels\/\">guiding leads through the funnel<\/a>, encouraging conversions, and further increasing sales.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Maintain_Customer_Satisfaction\"><\/span><span style=\"color: #993300;\"><strong>Maintain Customer Satisfaction<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The last benefit of a sales SPIFF is better customer satisfaction.<\/p>\n<p>A salesperson who wants that reward is going to work harder to sell to a customer. They won\u2019t be too pushy, of course, but since they\u2019re motivated, they won\u2019t quit as soon as the going gets tough.<\/p>\n<p>The increase in revenue will allow you to hire more customer service agents and expand your product roster, which also enhances <a href=\"https:\/\/www.engagebay.com\/blog\/crm-experience\/\">customer satisfaction<\/a>.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-blitz\/\">Read also: 12 Powerful Sales Growth Strategies for 2023 (+ Calculations)<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_You_Start_a_SPIFF_Program_Dos_and_Donts\"><\/span><span style=\"color: #339966;\"><strong>How Do You Start a SPIFF Program? ( + Dos and Don\u2019ts)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/09\/sales-faster.gif\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-15165\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/09\/sales-faster.gif\" alt=\"sales\" width=\"480\" height=\"366\"><\/a><\/p>\n<p>Have you decided to start a SPIFF program to increase <a href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/\">sales performance<\/a> and retain employees? Here are the steps to follow, including dos and don\u2019ts, so you can roll out this change efficiently.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_%E2%80%93_Determine_You_Goals\"><\/span><span style=\"color: #993300;\"><strong>Step 1 \u2013 Determine You Goal(s)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Companies must give clear instructions if they expect their employees to do their best work. Internally, decide among key stakeholders what sales goals you wish to achieve with the SPIFF program.<\/p>\n<p>SPIFF is usually about shorter-term goals with quick rewards to follow. If you\u2019re interested in carrying out a longer-term goal, break it into smaller goals and reward sales employees at the completion of each goal.<\/p>\n<p>This will keep your sales reps motivated to carry out the goal to completion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_%E2%80%93_Figure_Out_How_Sales_Employees_Can_Achieve_the_Goals\"><\/span><span style=\"color: #993300;\"><strong>Step 2 \u2013 Figure Out How Sales Employees Can Achieve the Goal(s)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With your goals decided upon, you next have to internally dictate what steps and processes your employees can follow to meet the sales goal.<\/p>\n<p>After all, if the goal is impossible to complete in the allotted time, you\u2019re setting up your sales team for failure. This will reduce morale and trust and could bolster employee turnover.<\/p>\n<p>Create clear-cut steps illustrating how sales reps can complete the sales goal. Confirm that the goal is doable within the allotted timeframe. If it isn\u2019t, break the goal down into smaller pieces for now.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_%E2%80%93_Decide_on_the_Reward\"><\/span><span style=\"color: #993300;\"><strong>Step 3 \u2013 Decide on the Reward<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Now comes one of the most important parts of the SPIFF program, choosing a reward for the sales employees who complete the goal.<\/p>\n<p>The reward must be worthwhile enough to whet the appetite of even your longest-term sales reps but not so extravagant that it costs your company a lot of money.<\/p>\n<p>You might issue smaller rewards for basic sales goals and save the bigger rewards for the larger projects and sales goals.<\/p>\n<p>If you\u2019re having a hard time determining the appropriate reward, we\u2019ll recommend some in a later section, so check that out!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_%E2%80%93_Choose_the_Sales_Reps_Who_Can_Participate\"><\/span><span style=\"color: #993300;\"><strong>Step 4 \u2013 Choose the Sales Reps Who Can Participate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This step is optional if your entire sales team is eligible for the SPIFF program. Some companies might decide to limit participation based on specific criteria.<\/p>\n<p>For example, if new sales reps have been with your company for less than a year, you might disqualify them from the SPIFF program.<\/p>\n<p>Try not to be too exclusionary, though. You\u2019ll have fewer sales employees to achieve the sales goal, which always stretches everyone thin. It can also be harder to complete the goal if you\u2019re practically short-staffed.<\/p>\n<p>Additionally, you can create dissension among your employees. That could introduce bad feelings and possibly even contribute to turnover.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_5_%E2%80%93_Set_the_Budget\"><\/span><span style=\"color: #993300;\"><strong>Step 5 \u2013 Set the Budget<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How much will your company spend on the SPIFF program? To determine that, you must calculate how many sales employees will participate and the cost of the reward(s).<\/p>\n<p>You should also look at past sales history for similar projects to determine how much your reps could earn on a similar project.<\/p>\n<p>A budget with a bit of leeway is better than one that\u2019s airtight, as you can expand the rewards if you wish.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_6_%E2%80%93_Launch_the_SPIFF_Program\"><\/span><span style=\"color: #993300;\"><strong>Step 6 \u2013 Launch the SPIFF Program<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At this point, your company is ready to deploy the SPIFF program among your sales employees. It\u2019s officially go time!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_7_%E2%80%93_Monitor_Results\"><\/span><span style=\"color: #993300;\"><strong>Step 7 \u2013 Monitor Results<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When the SPIFF program ends and the rewards are doled out, it\u2019s time to deem how worthwhile the venture was.<\/p>\n<p>Did your sales employees earn the projected amount, or was it even more? If you\u2019re pleased with the sales figures, before launching another SPIFF program, ask for employee feedback.<\/p>\n<p>Did they enjoy working on the SPIFF program, or did they find it too stressful? Was the reward commensurate with the amount of work they put in?<\/p>\n<p>If your employees liked the experience and the SPIFF program financially succeeded, you might follow the steps above from the beginning and launch another SPIFF program.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/challenger-sales-model\/\">Read also: The Challenger Sales Model: A 5-Min Guide to Close More Deals<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_SPIFF_Program_Reward_Ideas\"><\/span><span style=\"color: #339966;\"><strong>5 SPIFF Program Reward Ideas<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_28828\" aria-describedby=\"caption-attachment-28828\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1.jpeg\"><img decoding=\"async\" class=\"wp-image-28828 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1.jpeg\" alt=\"happy sales persons making a deal\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1.jpeg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1-300x169.jpeg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1-768x432.jpeg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/09\/How-to-keeping-customers-happy-1024x576-1-595xh.jpeg 595w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-28828\" class=\"wp-caption-text\"><em>Pexels<\/em><\/figcaption><\/figure>\n<p>Are you drawing a blank for how to reward your employees as part of the SPIFF sales program? As promised, here are a handful of great ideas to get you started.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Memberships_or_Subscriptions\"><\/span><span style=\"color: #993300;\"><strong>Memberships or Subscriptions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You can offer a membership or subscription to your top-performing sales employees for the gift that keeps on giving. It doesn\u2019t necessarily have to be an expensive subscription or membership service, but it shouldn\u2019t be so cheap that it\u2019s unappealing, either!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Offsite_Rewards\"><\/span><span style=\"color: #993300;\"><strong>Offsite Rewards<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An offsite reward refers to any kind of prize outside the workplace, like a trip to a spa, a restaurant, or something in that vein.<\/p>\n<p>It\u2019s always good to get out of the office, and enjoying offsite activities for free ought to motivate a sales rep to focus more on their work\/life balance.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Entertainment_and_Travel\"><\/span><span style=\"color: #993300;\"><strong>Entertainment and Travel<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Almost everyone loves traveling and entertainment, but they can be so expensive that your salespeople might not engage in these activities even though they really want to. Why not ply your top salespeople with tickets to movies, concerts, or sports games?<\/p>\n<p>For the travel lover, hotel discounts or vouchers make a fantastic incentive to work hard.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gift_Cards\"><\/span><span style=\"color: #993300;\"><strong>Gift Cards<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>To simplify matters, you can always hand out gift cards at the end of a SPIFF program. This allows you to spread the wealth, so to speak.<\/p>\n<p>What do we mean by that? Your top salespeople would receive the gift card with the highest value, while other contributing employees would receive smaller gift cards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cash\"><\/span><span style=\"color: #993300;\"><strong>Cash<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At the end of the day, every employee appreciates cold, hard cash. You can dole out cash the same way as gift cards, rewarding the hardest-working salespeople with the largest sums and others who pulled their weight with smaller sums.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-page\/\">Read also: 15 Great Sales Page Examples (And Why They Convert)<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #339966;\"><strong>Conclusion<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A sales SPIFF is a backronym that means <a href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/\">Sales Performance<\/a> Incentive Fund. Since the term spiff was originally created, it went through several definitions before becoming the informal sales slang term we know and love it as today.<\/p>\n<p>A SPIFF program can be a great way for your company to supercharge sales as you reward your top-selling salespeople. The program can also boost morale, increase productivity, <a href=\"https:\/\/www.engagebay.com\/blog\/crm-modules\/\">enhance customer satisfaction<\/a>, reduce turnover, and, of course, pad your company\u2019s bottom line.<\/p>\n<p>Make sure you\u2019re offering your sales reps worthwhile rewards, whether cash, gift cards, travel vouchers, entertainment tickets, subscriptions and memberships, or offsite services.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_6268678992035840' data-id='6268678992035840'><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The sales world has lots of slang terms, and one of them is SPIFF, a backronym. It\u2019s sometimes spelled as [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":39908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[158],"tags":[8277,136,8278,6851,8275,8276,8274,8228,7520,8273],"class_list":["post-38945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sales","tag-reward-program-for-sales-reps","tag-sales","tag-sales-commission","tag-sales-goals","tag-sales-program","tag-sales-reward-program","tag-sales-slang","tag-sales-spiff","tag-sales-terms","tag-spiff-meaning"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.3 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is a Sales SPIFF? It&#039;s a Game-Changing Motivator ...<\/title>\n<meta name=\"description\" content=\"What is a sales spiff? It\u2019s an acronym for Sales Performance Incentive Fund. Well, technically, it\u2019s a backronym.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-a-sales-spiff\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is a Sales SPIFF? The Game-Changing Motivator for Sales Teams\" \/>\n<meta property=\"og:description\" content=\"What is a sales spiff? It\u2019s an acronym for Sales Performance Incentive Fund. 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