SPIFs (Sales performance incentive funds) are one of the most powerful tools for driving short-term sales behaviour and boosting motivation. But like any incentive, a poorly designed SPIF can miss the mark, leading to confusion, low engagement, and wasted budget.

So how do you get it right? We spoke to Nick Nielson, Founding Account Executive at ZenCentiv, who shared his expert take on what makes a SPIF successful and what to avoid.

What is a SPIF and why does it work? 

SPIFs are short-term sales incentives designed to reward specific behaviours or outcomes, like closing deals faster, upselling, or landing new customers. Done well, they create urgency, increase focus, and help sales teams deliver results where the business needs them most.

Align every SPIF to a business goal 

"The first thing you need to ask is, what are you trying to achieve?" says Nielson. "SPIFs fail when they aren’t tied to the right business objectives."

For example, one company Nielson worked with wanted to increase ARR (annual recurring revenue) stability. "They designed a SPIF to reward Account Executives for closing multi-year deals. Reps earned accelerated commissions for contracts with a 3+ year commitment. It worked because they weren’t just rewarding any deal, they were rewarding the right deals that moved the business forward."

The takeaway? 

Start by defining your goal, whether that’s new customer acquisition, upsells, or reducing sales cycles, and design your SPIF around that.

Keep SPIFs simple and easy to win 

"Complex SPIFs kill motivation," says Nielson. "If reps don’t immediately understand how to win, they’ll ignore it."

The most effective SPIFs are simple, measurable, and exciting. For instance, Nielson shared a SaaS company’s Q4 SPIF where reps earned $500 for every expansion deal over a set threshold. The rules were clear, the reward was attractive, and expansion revenue increased by 30%.

The lesson? 

Make your SPIF easy to understand, easy to track, and appealing enough that salespeople care.

Time your SPIFs for maximum impact 

SPIFs are most powerful when they’re used strategically, not as an always-on incentive. "If you run SPIFs all the time, they lose their impact," Nielson explains.

For example, a client ran a "Weekend Warrior" SPIF offering a $500 bonus to any rep who booked three meetings over a weekend, designed to keep pipeline activity up during a quiet period. "It created urgency and got reps moving at exactly the right time."

Tip 

Use SPIFs during product launches, end-of-quarter pushes, or whenever you need a focused burst of sales activity.

Don’t let admin kill momentum - Automate payouts 

Nothing kills SPIF momentum faster than delayed or unclear payouts. "Reps hate wondering, ‘Where’s my money?’" says Nielson.

This is where Rewardable can help. With Rewardable, you can instantly send digital rewards to your sales team, whether that’s coffee, lunch, or larger incentives, keeping motivation high and eliminating admin headaches.

Rewardable’s intuitive platform lets you:

• Instantly deliver rewards at the perfect moment

• Choose from hundreds of popular digital gift card brands

• Track spending and download reports for easy budgeting

• Keep your sales team engaged without chasing paperwork.

Best practices for running successful SPIFs 

To get the most from your SPIF program, keep these four essentials in mind:

1. Align every SPIF with a clear business goal

2. Keep it simple, measurable, and easy to understand

3. Use SPIFs sparingly to maximise their motivational impact

4. Automate rewards to avoid admin delays and disputes.

SPIFs work best when sales reps know exactly what they’re working toward and can see the results immediately.

Make Rewardable part of your SPIF strategy 

SPIFs are most effective when recognition and rewards are delivered fast. That’s where Rewardable comes in. Our platform lets you run scalable, simple sales incentives that your team actually gets excited about. Ready to power your next SPIF? Try Rewardable today