Updated 11 min read

Sales incentive ideas: 20 rewards, and rules that stop gaming

Most lists of sales incentive ideas are thirty prizes in no order: gift cards, a trophy, a spa day. The prize matters less than what it rewards. These 20 are sorted by the job you need done, from more calls to lifting the reps in the middle. Each comes with how to run it and what goes wrong, then the prizes to give and the rules that keep a contest honest.

Start with the job, not the prize

The sales incentive ideas that work reward something a rep controls, pay out within days, and give the middle of the team a real chance to win. Activity points, raffle tickets for targets hit, most improved, a team reward and specific public thanks all do that. A prize for the month's top revenue usually doesn't.

You want your team to sell more, so you put up a prize. The top rep wins it again, the bottom half stops trying by week two, and a month later you're wondering why nothing changed.

The prize was fine. The problem was what it rewarded. A prize for "most revenue" goes to whoever had the biggest deal land, which your best rep would have closed anyway.

So before you pick a reward, pick the job:

  • More activity: calls, meetings, proposals.
  • Lifting the reps in the middle, who have the most room to grow.
  • Getting new reps through their first months.
  • A team goal everyone pulls toward.
  • Recognition that costs nothing.
  • A short push on one product or one number, with cash.

If the problem is bigger than one contest, how to motivate a sales team covers targets, routines and burnout. For contest design and points, see sales gamification.

Six types of sales incentive

Most incentives fall into six types, and each one fails in its own way.

TypePays forPays outWatch for
CommissionEach deal, as a share of its valueWith payPays nothing for the calls and meetings before the deal
Target bonusHitting a number for the month or quarterEnd of the periodA rep far behind by the 20th stops trying
SPIFFOne product or one action, for a few weeksWithin daysReps push it to buyers who don't need it
ContestPoints, tickets or a ranking over 2 to 4 weeksEnd of the contestThe same rep wins every time
Team rewardThe whole team hitting one numberWhen the team hits itOne rep carries the rest
RecognitionSpecific thanks, in public or in privateSame dayPraise that's vague, or late

Commission and target bonuses belong in the pay plan, agreed once a year. The other four are what you add on top, for a few weeks, to move one number, and the 20 ideas below use them.

Ideas that reward effort

Effort is the part of selling a rep controls. Rewarding it helps the reps who are doing the right things in a slow month.

1. Activity points week

Give points for the things that lead to sales: say 1 for a call, 3 for a meeting, 5 for a proposal. Highest points by Friday wins. Activity points explains how teams set the weights.

What goes wrong: reps log calls that didn't happen. Spot-check a few each week and say you will.

2. Personal best

Each rep competes with their own last four weeks. Beat your best week for meetings booked and you win, even if you're ranked last.

What goes wrong: nothing much. It's the fairest format there is. It just doesn't create much buzz on its own.

3. The most no's

Reward the most rejections in a week. It gets reluctant callers dialling, because a no counts too.

What goes wrong: run it longer than a week and reps start chasing no's instead of yeses. Keep it short, then use the reasons they heard to update your objection answers.

4. First call before 9

Every day a rep makes their first call before 9am earns a ticket. Draw one ticket on Friday for a prize.

What goes wrong: it rewards the first hour and nothing after it. Pair it with something else.

Ideas that lift the middle

Your top rep is motivated already. The reps ranked third to sixth are where one extra deal a month adds up.

5. Most improved

Reward the biggest jump from last month to this month, on a number you choose. A rep going from 4 meetings a week to 7 wins over one going from 12 to 13.

What goes wrong: a rep who had a bad month last time gets an easy win. Use a four-week average as the starting point.

6. Tiers, not a single winner

Everyone who hits a set number earns the reward. Hit 10 meetings this month, get the afternoon off on Friday. Five reps can all win.

What goes wrong: the bar is too high for most, or too low to mean anything. Set it at what your middle reps hit in a good month.

7. Raffle tickets for hitting targets

Each target hit earns a ticket: daily calls, weekly meetings, a proposal sent. More tickets, better odds, but anyone can win.

What goes wrong: very little. The top rep will still have the most tickets, and a rep in the middle still has a real chance.

8. Buddy pairs

Pair a stronger rep with one who's behind. If the pair's combined number beats their target, both win.

What goes wrong: pairs that don't get on. Let people swap after the first week.

Ideas for new reps

A new rep can't win a revenue contest in month one. Give them something they can win.

9. Ramp milestones

A small reward for each first: first 50 calls, first meeting booked, first proposal, first signed deal. Sales rep onboarding covers what the first 30 days should look like.

10. Lunch with the founder

After their first signed deal, the new rep gets lunch with the owner or the head of sales. It costs one lunch and they'll remember it.

11. A separate rookie board

New reps in their first 90 days rank only against each other.

What goes wrong with all three: forgetting them. Put the milestones in the calendar so you notice when someone hits one.

Ideas for team goals

Team goals get reps helping each other instead of guarding leads.

12. Team target, team reward

If the team hits the month's number, everyone gets the reward: a dinner, a half day, an outing they pick.

What goes wrong: one rep carries the team and resents it. Add a floor, for example everyone must hit their own activity target in three of the four weeks to join in.

13. Team against team

Split into two teams, balanced by past numbers, and run a two-week contest on meetings booked.

What goes wrong: unbalanced teams. Pick them yourself, from each rep's last month.

14. A shared bar on the wall

A bar that fills with each meeting booked across the team, with a reward at the top. It's simple, and everyone can see it. For a team that works from home, put the bar in the team's group chat and post it every Friday.

Recognition that costs nothing

These are sales recognition ideas you can start now. Recognition works best when it names what the rep did: the calls, the follow-up, the deal they saved.

Who gives the thanks matters too. Gallup asked employees who gave them their most memorable recognition. Their own manager came first (28%), then a senior leader or CEO (24%), per its write-up on recognition. The same piece recommends recognition every seven days. So the next four ideas come from you or the owner, weekly.

15. The Monday shout-out

Start the weekly meeting by naming one rep and exactly what they did: "Priya called back all eleven quiet leads from March, and two booked."

16. A note from the owner

A two-line message from the founder to a rep that names the deal or the effort. It takes a minute and gets shown to partners.

17. The rep picks the next contest

Last month's winner chooses the next contest format or prize. It gives them a say and keeps ideas fresh.

18. The rep teaches the team

Ask the rep who did something well to show the team how, for ten minutes. Being asked is the reward.

Prizes people want

The format decides who can win. The prize decides whether anyone cares. Gallup found the recognition that lands is the kind fitted to how each person likes to be thanked, so ask each rep for three things they'd like and keep the list.

Prizes that cost nothing:

  • A Friday afternoon off, or a late start after a week of evening demos.
  • Choosing their own call blocks for a week.
  • First pick of the new leads that come in.

Prizes that cost a little:

  • Lunch somewhere they choose, with you or the founder.
  • A course, a workshop or a book they asked for.
  • A voucher for a shop or a place they told you they like.

Prizes that cost more:

  • Tickets to a match, a show or an industry event.
  • Dinner for their family, or a cleaner at home for a morning. Selling takes evenings, and this thanks the people who covered for them.

Offer two or three options per contest and let the winner pick. A prize that fits the winner beats a bigger one that doesn't.

Cash and SPIFFs

Cash is clear and everyone likes it. It's also the easiest reward to get wrong.

19. A SPIFF on one product or one action

A SPIFF is a short bonus for one sale or action, on top of commission, until an end date. Use it for one job, like the new service, demos in a quiet month or old stock.

What goes wrong: reps push the SPIFF product to buyers who don't need it. Keep it short, two to four weeks, and check what was sold.

20. A small cash prize for the weekly winner

A fixed amount for the top rep on the week's contest.

What goes wrong: when cash is the only thing on offer, reps stop doing anything that doesn't pay, so run it alongside the recognition ideas.

Keep contest cash separate from the commission plan. If a contest changes what people are paid in a way the plan doesn't say, write it down first.

Prizes count as pay

Budget for tax on every prize. In the US, the IRS says cash, and gift cards that work like cash, are never a tax-free small benefit: they're taxable wages that go on the employee's W-2 (IRS, de minimis fringe benefits). In Singapore, IRAS lists awards for "attaining goals / targets" as taxable, cash or not, and counts gift and shopping vouchers as cash (IRAS, awards). Run contest prizes through payroll, so nobody gets a surprise at tax time.

Rules that stop gaming

Any contest will be gamed if it can be. A few rules close most of the gaps:

  1. Count what can be checked. A meeting in the calendar, a proposal sent, a logged call with an outcome.
  2. Spot-check each week, and say at the start that you will.
  3. Never reward a number that hurts the buyer: calls under a minute, discounts, deals pushed from next month into this one.
  4. Run each contest for two to four weeks, then change the format.
  5. Make sure at least half the team can win something. If the same person wins every time, change the format.
  6. Publish the rules before the start, and don't change them halfway.
  7. Stop a contest that's making people miserable, even if the numbers look good.

The research pulls two ways here. Gallup's recognition piece warns that rewarding people who aren't top performers can put off the ones who are, so it says to state the standard for every award up front. So say what earns each prize before the contest starts, and keep one reward for the top next to the ones the middle can win. Alfie Kohn went further in Harvard Business Review in 1993, arguing that rewards tend to undermine the very work they're meant to boost. Short contests, specific thanks and a new format every few weeks are the practical answer to both.

Made-up example: Rosa manages six reps selling office equipment leases. Meetings booked have slipped from 30 a week to 22.

Week 1: she picks the job, more meetings, and runs raffle tickets: one ticket for every meeting booked. The prize is a Friday afternoon off. She tells the team she'll check each meeting against the calendar.

Week 2: meetings are back to 27. The top rep has 11 tickets, but the draw goes to Ben, who booked 4, his best week in two months. The team cheers, because he'd been quiet.

Week 3: she spots two meetings logged with no calendar invite. She raises it in the Monday meeting without naming anyone and repeats the rule. It doesn't happen again.

Week 4: she switches to "most improved" on a four-week average, and gives a Monday shout-out to the rep who called every quiet lead from the spring. Meetings are at 29. Total spend for the month: one afternoon off and two coffee vouchers.

Effort contests need a count everyone trusts. ActivityTracker's leaderboard turns every call and meeting your reps log into points, it's the board they keep checking, and the week's rankings post to your team's group chat.

See the sales leaderboard

How to tell if it worked

A contest that felt busy isn't the same as one that worked. Before it starts, write down the number it's for and its four-week average. Then check four things:

  1. Did the number beat its four-week average, or just match a good week you'd have had anyway?
  2. Who won? If the winners were your top two again, the format didn't reach the middle.
  3. What happened in the two weeks after? A number that drops straight back was borrowed from next month.
  4. What did it cost per extra meeting or deal? An afternoon off for six extra meetings is cheap. A cash prize for one is not.

Keep one line per contest in a shared note: the format, the number before and after, the winner and the cost. After three or four rounds, you'll know which formats your team responds to.

If you sell on your own

Nobody hands a consultant, coach or freelancer a prize. So set your own.

Pick one weekly activity you control, like ten follow-ups or five new conversations, and choose the reward up front: a long lunch, a cinema ticket, a morning off. Hit the number that week and take it. Miss it, and the reward waits a week while you work out what got in the way. Make it something you'd otherwise skip, because a reward you'd take anyway has no pull.

What to do first

  1. Pick one number that's slipped, and write it down as the contest's job, with its four-week average.
  2. Choose a format that fits that job, and ask the team which of three prizes they'd want.
  3. Write the rules on one page, with how you'll check, and share them before you start.
  4. Run it for two weeks. Then count: did the number move past its average, and who won?
  5. Change the format for the next round, and keep one recognition habit going between contests.

If you'd rather run the board in a spreadsheet, the sales leaderboard template scores calls, meetings and proposals and names the most improved rep.

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Reward what you want more of.

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