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SPIFF (Special Performance Incentive)
Short-term, narrowly scoped bonus to drive a specific outcome.
Bonus Layers
Beginner
How it works
A Special Performance Incentive (SPIFF) is a short-term, often monthly contest or per-event bonus to drive a specific behavior - new product demo, end-of-quarter pipeline, new logo focus, etc. SPIFFs sit on top of the recurring plan and are paid quickly. Used surgically; not a substitute for plan design.
Formula
SPIFF_bonus = unit_amount x qualifying_events
Worked example
Example. $500 SPIFF per qualified discovery call of the new analytics module during Q3. A rep who books 6 such calls earns $3,000 above their normal commission.
Pros & cons
Pros
- Drives short-term focus on strategic priorities
- Easy to launch and retire
- Pairs well with new product launches
Cons
- Can distort focus if overused
- Risk of double-payment if not coordinated with the recurring plan
- Adds operational complexity
Best for
- New product launches
- Strategic pipeline pushes
- Quarterly contests