A sales spiff is a short-term incentive that rewards reps for hitting a specific goal. It sits on top of their usual commission and is typically used when there's something you want the sales team to prioritize for a given time.
Say you've just launched a new product and want your sales team to give it an extra push. You could offer every rep a $100 spiff payout for making five qualifying sales that month. The goal is clear, the target is clear, and everyone knows exactly what they'll earn if they hit it.
Sounds simple enough, and it can be. But a good spiff program needs to do more than get people chasing a reward. It needs to change the sales behavior you care about and generate enough extra value to justify what you spend, including the work it takes to run the program. Someone still has to set the rules, track who qualifies, manage the budget, and make sure 200 people aren't waiting weeks for a reward they've already earned.
Here's how to structure a spiff program that works, from choosing the right goal and reward to making spiff payouts easy to manage as your program grows.
What is a sales spiff?
A sales spiff is a short-term incentive designed to give a sales priority an extra push. Unlike commission, it runs for a set period and rewards reps for hitting a specific goal, like selling a certain product or reaching a group monthly target.
For example, you might offer $50 for every qualifying sale of a new product during its first month. Or you could offer a $250 spiff payout to reps who reach a set target before the end of the quarter. Either way, reps know exactly what you want them to focus on and how long they have to earn that extra reward.
That short-term focus is what makes a spiff effective. It gives reps a clear reason to pay extra attention to something the business needs right now, without permanently changing how they're paid. But run the same incentive for the same activity month after month, and it starts to feel less like a spiff and more like part of the regular compensation reps come to expect.
You'll also see spiff expanded as "Sales Performance Incentive Fund," which gets to the heart of what it is: do a specific thing, within a timeframe, and earn this reward. That clarity matters because reps shouldn't have to work out what the business needs from them, or wonder whether extra effort is worth it.
Sales spiff vs. commission
Commission is part of a sales rep's ongoing compensation. A sales spiff is something extra you introduce when there's a particular result you want to encourage for a limited time.
| Sales spiff | Sales commission | |
|---|---|---|
| Purpose | Encourage a specific sales behavior | Reward ongoing sales performance |
| Duration | Short-term | Ongoing |
| Target | Specific product, action, or goal | Broader revenue or sales targets |
| Payment | Fixed, tiered, or goal-based reward | Usually based on an agreed compensation structure |
| Best used for | Temporary sales priorities | Core sales performance |
The key difference is that spiffs and sales commissions aren't mutually exclusive. Commission is an expected part of a rep's regular compensation. A spiff sits on top of that structure, giving reps a chance to earn extra for hitting a new, temporary target that matters to the business right now.
Think of commission as rewarding ongoing sales performance, while a spiff is an extra performance bonus for giving a specific priority an extra push.
When should you use a spiff program?
Use a spiff program when there's a specific sales priority you want to give an extra push for a limited time.
You could use it to:
- Generate early sales for a new product or service
- Increase sales of a particular product or SKU
- Encourage upselling or cross-selling
- Move inventory within a set timeframe
- Re-engage stalled opportunities
- Encourage a new sales behavior
- Support a time-sensitive campaign
- Motivate channel partners or external sales reps
Before launching one, ask why sales performance isn't already happening.
If reps don't understand a new product, offering them more money won't fix a training problem. If customers don't want it, a spiff could encourage reps to push a poor-fit product. And if the behavior is already part of what you expect from the sales team every month, it may belong in your regular compensation plan instead.
A spiff works best when reps can already do what you're asking, but there's a good reason to give that particular goal more attention right now.
How to structure a spiff program that works
Start with what you want to change, not how much you want to pay.
Work backward from the sales result you want to the behavior most likely to get you there. Then decide what counts, how much the result is worth, and how you'll reward the people who earn it. For reps, the final program should feel simple: do this, earn this, by this date.
1. Start with one clear sales objective
"Increase sales" is too broad. "Get more customers onto our new premium package" gives you something you can actually build a sales spiff around. Start with the result you want, then work out which sales behavior is most likely to move it.
For example: if you want more customers buying a new product, you might reward qualifying first-time sales. If you want more expansion revenue, you might reward a particular cross-sell.
Be intentional about what you reward, because reps will focus on exactly that. Reward meetings booked and you'll get more meetings, but not necessarily more sales. Reward sales volume and you could end up encouraging discounting or lower-margin deals.
The aim is to reward the behavior that gets you closest to the business result you actually want. A focused goal makes the incentive clearer for reps, and it gives you something meaningful to measure when the campaign ends.
2. Define exactly what qualifies
Nobody wants to hit a target only to discover their sale didn't count towards a spiff payout.
Before you launch, make it completely clear:
- Which reps, teams, or partners can participate
- Which sales or activities qualify
- The minimum performance required
- When the spiff starts and ends
- When a sale officially counts
- What happens if an order is canceled or refunded
- When the rewards will be paid
Make sure reps have a fair chance of hitting the target too. If territories, account sizes, or opportunities vary significantly, the same target might be easy for one rep and almost impossible for another.
The fewer gray areas you leave, the fewer awkward payout conversations you'll have later.
3. Choose a spiff structure that fits the goal
You don't need an elaborate points system to make a sales spiff motivating. Sometimes a straightforward "sell this, earn that" incentive is all you need. For other goals, a threshold, tiered reward, or team target might work better.
| Spiff structure | Example |
|---|---|
| Flat-rate | Earn $25 for every qualifying sale |
| Threshold | Earn $100 after five qualifying sales |
| Tiered | Earn $50 at five sales and $150 at 10 |
| First-to-goal | Reward the first 10 reps to reach the target |
| Activity-based | Earn a reward for completing a defined qualifying action |
| Team-based | Reward the team when a shared target is reached |
Think about what each structure will encourage reps to do. A first-to-goal spiff can create urgency, but reps who fall behind early may give up. A team target can work better when several people contribute to the same sale.
There's no standard amount for a sales spiff either. The reward needs to be big enough to motivate reps, but not so big that you give away the value you're trying to create.
4. Set your sales spiff budget
Do the math before you launch the program, but don't start with "How much should we pay?" Start with "What is an extra sale worth to us?"
If every new sale generates $500 in margin, a $100 spiff might be easy to justify. If it only generates $50, it probably isn't.
Then work out your maximum exposure: what would the program cost if everyone hit their target?
Number of eligible reps × maximum reward per rep = maximum spiff budget
If 50 reps can each earn up to $200, your maximum spiff payout is $10,000.
Tiered or uncapped spiffs need a little more planning. Model what happens if far more people qualify than expected and decide whether you need a cap before you launch. And plan for success. If everyone hits the target, be ready and willing to pay everyone quickly, with a reward they'll actually value, whether that's a gift card or prepaid cards.
5. Set a target reps can actually influence
You don't want to pay extra for sales that were going to happen anyway. Look at what your team normally achieves before setting the target, then set the target around the extra performance you want to create. But it still needs to feel achievable. Set the bar too low, and you're paying for business as usual; set it too high, and reps may find it too hard to reach. The sweet spot is somewhere between "we'd do this anyway" and "there's no chance."
The timeframe needs to be realistic too. If a typical deal takes six weeks to close, a two-week spiff based on closed sales gives reps little chance of changing the outcome. Set the target high enough to change behavior, but close enough that reps believe they can reach it. Then give them enough time to do it.
6. Make the spiff payout part of the plan
Once someone earns a sales spiff, you don't want the reward getting stuck behind a pile of manual admin. Decide upfront how you'll verify results and get the payout to them, especially if you're running the program across a large sales team.
Giftogram takes a lot of that work off your plate. You can send spiff payouts in bulk, schedule rewards in advance, or automate recurring sends through integrations and Zapier. For more customized workflows, you can connect reward delivery directly to your own systems through the Giftogram API.
So when 200 reps hit their targets at month-end, you don't need someone sending 200 rewards one by one. Instead, the payout process can scale with the spiff program.
What does a good spiff program look like?
A good spiff program is simple for reps and easy for the business to measure. There's one clear goal, a target reps can realistically influence, a reward worth earning, and no confusion about what counts or when they'll be paid.
Say a software company wants more customers to buy a newly launched add-on. It runs a four-week spiff for its account executives: every five qualifying add-on sales earns a $100 reward, capped at $300 per rep.
The CRM tracks each sale, Sales Ops confirms who qualifies, and the rest happens automatically. Rewards go out every Friday with minimal admin, and each rep gets to choose something they actually want.
Reps know exactly what to do, what they'll earn, and when they'll get it. The business knows its maximum cost upfront and can measure whether the extra sales and margin justified the spend.
What should you offer as a spiff reward?
Cash, prepaid cards, and gift cards all work well as sales spiffs. The right choice depends on the kind of reward you want to offer.
Cash feels closest to extra compensation. Prepaid cards give reps plenty of freedom over where they spend the reward. Gift cards keep the reward separate from regular pay while still giving reps plenty of choice.
And across a large sales team, not everyone wants the same thing. Instead of guessing what will appeal to 500 different people, you can set the reward value and let them choose what works for them.
Cash payouts
Cash is hard to argue with. People can use it however they like, which makes it a natural choice for larger spiff payouts. Giftogram lets you send cash payouts through PayPal globally, with Venmo, Zelle, ACH direct deposit, and checks available in the US, without processing each payment separately.
Prepaid cards
Prepaid Visa and Mastercard give reps flexibility in how they spend their reward while keeping the spiff separate from their regular paycheck.
With Giftogram, you can offer digital or physical prepaid cards as part of your spiff program, and add your branding with a message to make it feel more personal.
Gift cards with recipient choice
Digital gift cards work particularly well when you want the sales spiff to feel like a reward while still giving people plenty of choice.
Instead of picking one retailer for the whole sales team, Giftogram lets each person choose from 140,000+ national and local brands. They can even split their reward across multiple gift cards.
If your sales team works across countries, Giftogram supports rewards in 230+ countries, so you don't need a completely different process for every market.
How to automate your spiff payouts
Once a rep earns a spiff, getting the reward to them should be the easy part. By connecting Giftogram to the tools that already track your sales activity, you can automate more of the payout process and cut out spreadsheets, handoffs, and one-by-one sends.
A simple automated spiff workflow could look like this:
- Set the trigger: Decide what needs to happen for a rep to earn the spiff, such as closing a qualifying deal in your CRM.
- Confirm eligibility: Use the data in your existing system to check that the sale meets your program rules.
- Trigger the spiff payout: Once the requirements are met, send the reward through Giftogram using an integration, Zapier, or a custom API workflow.
- Let the rep choose their reward: Depending on your program, they could receive a gift card with recipient choice, a prepaid card, or a cash payout.
- Track what you've sent: Keep reward activity and spending visible so you know where your spiff budget is going.
If you already use software to manage commissions, quotas, or variable pay, keep using it to work out what each rep has earned. Once a spiff is approved, Giftogram delivers the reward.
You don't have to automate everything from day one, either. For an occasional sales spiff, uploading qualifying reps in bulk may be plenty. As the program grows or payouts become more frequent, Giftogram lets you automate more of the process without rebuilding from scratch.
Common spiff program mistakes to avoid
When they work, spiff programs can really push an important business priority. But they can also get lots of people moving without improving sales. Success isn't how many rewards you hand out, but whether the extra performance they create is worth what you spend.
Watch out for:
- Rewarding the wrong thing. More calls, meetings, or units sold are only useful if they drive the result you actually care about.
- Setting targets reps can't control. A target won't feel fair if territory, account mix, or timing matters more than the rep's own performance.
- Assuming everyone wants the same reward. Giving reps a choice means you don't have to guess what will appeal to the whole team.
- Taking too long to pay. Someone who hits their target this week shouldn't still be chasing their spiff payout months later.
- Keeping a manual process for too long. A spreadsheet might be fine for 10 payouts. At 500, managing rewards can become a job in itself.
- Spending more than the result is worth. Lots of people earning the spiff is only good news if the extra sales justify the cost.
Keep the goal clear, the rules simple, and the reward worth earning. Then make sure you deliver exactly what you promised.
How to measure whether your spiff program worked
Lots of people earning a spiff might look like success, but that's not the number that really matters. What matters is whether the program changed sales enough to justify what you spent. Start with three questions.
Did reps do more of what you wanted?
Go back to the behavior you decided to reward. Did more reps sell the new product? Did cross-sells increase? Did the sales activity you wanted to change actually move?
Compare the results with what your team normally achieves rather than looking at the spiff period on its own.
Did that lead to a better sales result?
More activity isn't always better. If the spiff generated more demos but none became customers, it didn't achieve much. If it increased sales by pushing reps toward lower-margin products or heavier discounting, the revenue number alone can make the program look better than it really was.
Follow the behavior through to the result you were actually trying to improve.
Was the result worth what you spent?
Finally, compare what you got back with what you paid out.
Depending on the spiff, track:
- Participation
- Qualifying sales and their value
- Performance against your usual baseline
- Revenue and margin generated
- Total spiff spend
- Cost per extra sale or action
Then compare the results with what could have happened without the spiff, benchmarking against usual team performance. While you won't always know exactly which sales the spiff created, you should be able to work out whether the uplift justified the spend.
Giftogram tracks what you sent and spent; your sales system tracks performance. Put the two together, and you can see whether the results justified the spend and whether the spiff is worth running again.
Make spiff payouts easier with Giftogram
Giftogram makes it easy to reward your sales team as soon as they earn their spiff. Send payouts in bulk or automate the process as your program grows, so rewarding great performance stays simple at any scale.
Give reps the freedom to choose from 140,000+ brands, with rewards available across 230+ countries. It's why more than 25,000 companies use Giftogram to manage rewards and incentives at scale.
Ready to hit your next sales target without the payout admin? Get started with Giftogram.
Sales spiff FAQs
A spiff is an extra reward a sales rep can earn for hitting a specific, short-term target on top of their usual commission. For example, a rep might earn a $100 spiff for selling five units of a new product that month. SPIFF is also sometimes known as a "Sales Performance Incentive Fund."
A spiff program is how a business structures and runs those incentives. It sets the goal, who can take part, what counts, how much reps can earn, how long the incentive runs, and how spiff payouts are tracked and sent.
A spiff payout is the reward a sales rep gets for hitting the target set by a spiff program. With Giftogram, you can send that reward as a gift card with recipient choice, a prepaid Visa or Mastercard, or an available cash payout. PayPal is available globally, while Venmo, Zelle, ACH, and check are available in the US.
Commission is part of a sales rep's ongoing compensation. A sales spiff is an extra, limited-time incentive designed to encourage a specific behavior or result. Reps can earn their usual commission alongside a spiff payout.
A spiff program should run long enough for reps to have a fair chance of hitting the target, but short enough to keep the goal focused. Match the timeframe to what you're asking reps to do and how long your normal sales cycle takes.
Tell reps when they'll be paid before the program starts, then send the reward as soon as practical after you've confirmed they earned it. With Giftogram, businesses can send approved spiff payouts in bulk or automate reward delivery for repeat programs.
Yes. Once your sales system has confirmed that a rep earned the spiff, Giftogram can automate reward delivery through integrations, Zapier, or its API. You can also send rewards in bulk for programs that don't need a fully automated workflow.
Sales spiffs can have tax and payroll implications. For US employees, cash and cash-equivalent rewards such as gift cards are generally treated as taxable wages. Check the latest IRS guidance and speak with a qualified tax professional about your specific program.
Yes. Gift cards are a great option for spiff payouts because reps can choose something they actually want. With Giftogram, each person can choose from 140,000+ national and local brands and even split their reward across multiple gift cards.