A SPIFF (often read as "sales performance incentive fund") is a quick, targeted bonus. It's not part of the regular commission plan. It's a short campaign that pays extra for one specific thing you want more of, right now.
When a SPIFF makes sense
- Launching a product: extra pay for each deal that includes the new product.
- Clearing the quarter: a bonus for deals closed before quarter-end.
- Fixing a gap: more annual contracts, more upsells, more meetings booked.
Example
Your team launches a new add-on. For the next 30 days, every deal won that includes it pays a $150 SPIFF, on top of normal commission.
A rep closes four deals with the add-on this month: 4 × $150 = $600 in SPIFFs, plus their regular commission on the deal values.
Mistakes to watch for
- Running SPIFFs all the time. A SPIFF that never ends is just a messy part of the commission plan.
- Paying for the wrong thing. A SPIFF on deals closed this week can pull deals forward at a discount. Make sure what you pay for is what the business actually needs.
- Paying late. The power of a SPIFF is quick reward. If it's paid three months later, most of the effect is gone.
- Not tracking it. SPIFFs paid from a side list are a common source of payroll mistakes. Record each one as an adjustment with a reason.
FAQ
What's the difference between a SPIFF and a bonus?
A SPIFF is short-term and tied to one specific action. A bonus is usually tied to an overall target, such as hitting quota for the quarter.
How long should a SPIFF run?
Usually a few weeks to a quarter. Long enough to change behavior, short enough that it still feels special.
How do I add a SPIFF in Delta Drive?
Add it as a manual bonus on the rep's month with a short reason, such as "Add-on SPIFF, 4 deals." In Delta Drive it appears next to the calculated commission in the month-end report.