A spiff, or Sales Performance Incentive Fund Formula, is a short-term sales incentive strategy that offers sales reps bonuses for achieving specific goals, such as closing sales or booking demos. These bonuses can take various forms, including cash, reloadable debit cards, gift cards, select merchandise, or incentive travel trips. Spiffs are used to increase sales of high-margin products, move old inventory, accelerate the adoption of new products, build brand preference, and boost sales within a specific timeframe.
Effective implementation of spiff programs requires a strategic approach, involving:
Spiff programs differ significantly from standard commission structures:
To maximize the effectiveness of spiffs and ensure they lead to desired outcomes, consider these strategies:
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