How it works
A SPIFF has three parts: what counts, what it pays and when it ends. It usually pays a flat amount per sale or per action, runs for a few weeks or a quarter, and is paid quickly, often in the next pay run.
Commission works differently. It's part of your pay plan, runs all year and pays a rate on everything you sell. A SPIFF is a push on one thing for a short time, and it stops when the date passes. Manufacturers also pay SPIFFs to the salespeople at the stores and resellers that carry their products.
Worked example, with made-up figures: your manager runs a two-week SPIFF of $50 for every demo you book for the new product. You book 6, so that's $300 on top of your pay. If one of those demos turns into a $10,000 deal at 8% commission, the deal pays you $800 as usual. The SPIFF doesn't change it.
The word is older than the acronym. A slang dictionary from 1859 already used it for the extra a draper paid shop staff for selling old stock. "Sales performance incentive fund" was fitted to the letters later, which is why you'll see it written spiff, SPIF and SPIFF.
Where it shows up in your week
A SPIFF works best when everyone can see the count while it's running. The sales leaderboard ranks your team on the calls and meetings each rep logs, and posts the week's rankings to your group chat.
Related terms
Questions reps ask
Sources
- Wikipedia, "Spiff": the 1859 slang dictionary entry and the backronym, read 27 September 2026