What is a SPIFF in sales (and should your team be using them)?
If you lead a sales team, you’ve probably heard the term SPIFF thrown around — but what does it actually mean, and does it work?
A SPIFF (Sales Performance Incentive Fund) is a short-term sales incentive used to drive quick results. Unlike commission, which is typically tied to long-term revenue, a SPIFF is designed to boost momentum, reward behaviour, and add energy to your team — fast.
Here’s what you need to know about using SPIFFs effectively in your sales strategy.
What is a SPIFF?
A SPIFF is a bonus or incentive offered to salespeople to encourage the sale of a specific product or to meet a specific goal within a short time frame.
They can be:
- Cash rewards
- Gift cards or vouchers
- Prizes or experiences
- Extra time off or perks
Think of SPIFFs as a short-term motivational boost to achieve targeted outcomes — like clearing stock, launching a new product, or meeting an end-of-quarter goal.
SPIFFs vs. commission: what’s the difference?
While commission is part of a salesperson’s long-term compensation structure, SPIFFs are temporary and often tactical.
Commission:
- Recurring, long-term reward
- Often % of total sale
- Encourages consistent performance
SPIFF:
- Short-term, one-off bonus
- Fixed incentive per unit or deal
- Drives specific actions fast
Use SPIFFs to complement (not replace) your commission plan — especially when you need a burst of focused activity.
When to use a SPIFF
SPIFFs work best when you have a clear, time-sensitive goal. Examples include:
- Promoting a new product or service
- Clearing old inventory
- Boosting sales in a slow period
- Encouraging upsells or cross-sells
- Gaining quick traction in a new market
They’re especially effective in fast-paced sales environments where quick wins matter.
Best practices for running a SPIFF
To make your SPIFF program a success, keep it:
✅ Simple — reps should understand the goal instantly
✅ Short-term — typically 1–4 weeks in duration
✅ Transparent — explain how rewards are earned
✅ Visible — track progress and celebrate wins
✅ Fair — ensure all team members have a shot at earning
Use your CRM (like Capsule) to monitor deal progress and performance in real-time — so you know who’s close and where to optimise.
Are SPIFFs right for your team?
SPIFFs can be a great motivational tool, but they’re not a silver bullet. When used too frequently, they lose impact. And if they’re not aligned with your overall goals, they can encourage short-term thinking.
The key is balance: use SPIFFs strategically, track their results, and make sure they reinforce — not replace — your long-term sales strategy.
Final thoughts
Whether you’re launching a new product or just need to inject some energy into the team, a well-timed SPIFF can be an effective way to move the needle.
Capsule CRM helps you track performance, manage pipelines, and make sure every incentive program aligns with your broader sales goals.
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