What is SPIFF?
SPIFF is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
A SPIFF is a short-term sales incentive that pays a rep an immediate bonus for a specific action, such as selling a particular product or closing before quarter end. SPIFFs are used to drive focused behavior on top of the regular commission plan, injecting urgency around a priority the business wants to push right now.
Key takeaways
- A short-term bonus for a specific sales action.
- Layered on top of the standard commission plan.
- Drives focus on a priority product or timeframe.
- Best used sparingly to keep its motivating power.
Why it matters
SPIFFs let leaders steer effort quickly, toward a new product, a slow quarter-end, or a strategic push, without rewriting the comp plan. Used too often, they lose impact and distort focus.
How Ardovo handles it
Ardovo can tag deals that qualify for a SPIFF and track progress toward it in real time, so reps see the extra incentive on the exact deals it applies to and leaders measure whether the push worked.
Frequently asked questions
What does SPIFF stand for?
It is commonly said to mean Sales Performance Incentive Fund, though usage varies. In practice a SPIFF is simply a short-term bonus for hitting a specific, time-bound sales objective.
When should you use a SPIFF?
To drive a focused, temporary push: launching a new product, clearing aging inventory, or hitting a quarter-end goal. Overusing them dilutes the effect and can distract reps from core priorities.