A sales spiff is a sales performance incentive fund (often written with an extra "f"), which is a short-term incentive used to motivate sales representatives.

Often an unexpected bonus or commission, they’re like a shot of espresso that give sales reps a little extra motivation to exceed their targets and hit specific goals. They can be financial incentives, like cash bonuses or gift cards or non-monetary commissions, like prizes, recognition or even extra time off.

The key is to offer something that truly excites sales rep to make the extra effort. A well-executed sales spiff requires a clear objective, a well-defined goal and a realistic timeframe. It's important to communicate the details clearly to the sales rep, as transparency and fairness are crucial to avoid any perception of favoritism or unfairness.

When planning a sales spiff, it's also important to be mindful of potential pitfalls. Sandbagging, where reps intentionally delay closing deals until the spiff period, can undermine the effectiveness of the incentive. Overly competitive spiffs can create a toxic work environment, so consider incorporating team-based incentives to boost teamwork.