Spiff (also spelled SPIF - Sales Performance Incentive Fund) is a short-term bonus designed to motivate salespeople to take specific actions within a defined timeframe. Unlike standard commission that rewards all sales equally, spiffs focus attention on particular products, customer types, or behaviors the company wants to emphasize right now. According to SalesGlobe (2024), 67% of B2B companies use spiffs as part of their incentive strategy.
Spiffs are effective because they:
According to Pavilion (2024), spiffs increase sales performance by an average of 18% during the campaign period.
| Spiff Type | Objective | Example |
|---|---|---|
| Product Push | Increase sales of specific product | $500 per Enterprise license sold |
| New Logo | Acquire new customers | $1,000 for each new customer |
| Activity | Drive specific behaviors | $50 per qualified demo booked |
| Speed | Accelerate deal closure | $250 extra for deals closed this week |
| Competitive | Win against specific competitor | $750 for competitive displacement |
| Volume | Hit quantity targets | $100 per deal, first to 10 wins bonus |
| Multi-Year | Longer contract terms | $500 for 3-year contracts |
Company needs to hit annual product goals:
| Spiff Details | Value |
|---|---|
| Duration | Last 2 weeks of Q4 |
| Target | Premium tier product sales |
| Reward | $500 per Premium deal |
| Cap | No cap |
Company prioritizing customer acquisition:
| Spiff Details | Value |
|---|---|
| Duration | Full month |
| Target | First-time customers only |
| Reward | $1,000 per new logo |
| Bonus | $2,500 extra for rep with most new logos |
Boosting pipeline generation:
| Spiff Details | Value |
|---|---|
| Duration | 1 week |
| Target | Qualified meetings booked |
| Reward | $75 per meeting (vs. normal $50) |
| Bonus | $500 for first SDR to book 15 |
Keep it simple: Reps should understand the spiff in one sentence. Complex rules reduce participation and create confusion.
Make it achievable: If only top performers can win, others won't try. Design spiffs where 30-50% of reps can earn something.
Create urgency: Spiffs work best with short timeframes—1-4 weeks. Longer programs lose urgency and become "normal" comp.
Communicate clearly: Announce spiffs at the start. Send daily or weekly updates on standings. Celebrate winners publicly.
Pay quickly: Pay spiff earnings within days, not weeks. Immediate rewards reinforce the behavior you want.
| Aspect | Spiff | Commission |
|---|---|---|
| Duration | Short-term (1-4 weeks) | Ongoing |
| Focus | Specific products/behaviors | All revenue |
| Purpose | Drive tactical priorities | Reward overall performance |
| Predictability | Variable, announced as needed | Consistent, in comp plan |
| Amount | Usually fixed per action | Percentage of deal |
Use them sparingly—maximum 4-6 times annually. Too many spiffs dilute focus and train reps to wait for bonuses instead of selling consistently.
Spiffs are typically short-term (1-4 weeks) and focused on specific actions. Bonuses are often longer-term (quarterly/annual) and based on overall performance against quota.
Design spiffs for actions that wouldn't otherwise happen—new products, new customer segments, or acceleration of existing pipeline.
Launching spiffs shouldn't require spreadsheet gymnastics. With Prowi, you can create spiffs in minutes, track performance in real-time, and calculate payouts automatically—so you can focus on results, not administration.