SPIFF

A SPIFF (sometimes also referred to as a SPIF, spif, or spiv) is a short-term incentive program designed to motivate sales representatives by offering immediate rewards for selling specific products or achieving certain performance goals. Unlike standard commissions, SPIFFs are typically temporary and targeted, aiming to drive attention and effort toward particular business outcomes within a set timeframe. 

Common SPIFF strategies include: 

• Offering cash bonuses, prizes, or other incentives directly to salespeople 
• Focusing on short-term sales pushes for high-margin, new, or underperforming products 
• Encouraging competition or urgency to accelerate results during key promotional periods 

Companies often incorporate SPIFFs as part of a larger overarching incentive strategy. Specifically, they’re used to quickly boost sales in targeted areas without changing broader compensation structures. For example, a tech distributor might launch a two-week SPIFF rewarding resellers with $100 for every unit of a newly released laptop model they sell, incentivizing faster market penetration and increasing early adoption. 

Immediate, tangible SPIFF incentives add value by creating a sense of urgency and focus among sales teams. This enables businesses to rapidly shift attention to high-priority products or goals when the need arises and can ultimately energize sales performance and engagement while also driving faster product movement.