Cash vs. Non-Cash SPIF Incentives: Which Sales Strategy Delivers Best?

When it comes to designing a SPIF sales incentive, one question always comes up:

Should we offer cash - or get creative with non-cash rewards like gift cards, tech, or experiences?

There’s no one-size-fits-all answer, but understanding how SPIF incentives work - and what drives behavior - can help you make the right call.

In this article, we’ll break down:

• The definition of a SPIF

• Differences between cash and non-cash SPIFs

• Pros and cons of each

• When to use one over the other

Let’s dig in.

What Is a SPIF Incentive in Sales?

First, a quick refresher on the definition of a SPIF:

SPIF (Sales Performance Incentive Fund) is a short-term reward used to motivate sales behavior - typically outside the normal compensation plan.

A SPIF sales incentive can be as simple as $100 per upsell or as elaborate as a leaderboard contest with high-end prizes.

Key characteristics:

• Short-term (often 1–4 weeks)

• Goal-specific (e.g. push a product, drive demos, close fast)

• Usually layered on top of base pay and commission

The Two Main Types of SPIF Incentives

When building a SPIF program, you’ll typically choose between:

1. Cash SPIF Incentives

These are direct monetary rewards - either flat amounts, tiered payouts, or % bonuses.

Examples:

• $200 bonus for every deal over $10K

• $500 for top performer of the week

• Tiered payout for number of qualified demos booked

These are typically processed via your payroll system.

2. Non-Cash SPIF Incentives

These are rewards like:

• Gift cards

• Merchandise (headphones, Apple Watch, etc.)

• Team dinners or lunches

• Extra Paid Time Off (PTO) days

• Experiential prizes (trips, events, etc.)

While not liquid cash, they can still carry high perceived value - especially when tied to recognition and status.

Cash SPIFs: Pros and Cons

Pros

• Immediate impact: Reps know exactly what they’re getting

• Universal appeal: Everyone values money, and recipients can decide for themselves what to do with them

• Simple to administer through payroll or payout tools

• Easier to scale for multi-region or global teams

Cons

• May blend in with commissions or base pay

• Less memorable long term

• Higher tax visibility (show up on payroll)

• Can lose motivational value if overused

Non-Cash SPIFs: Pros and Cons

Pros

• Memorable and shareable (e.g. “I won an iPad!”)

• Creates status and recognition

• Feels like a “treat” vs. income

• Less likely to be mentally compared to salary

Cons

• May not appeal to everyone

• Harder to administer (shipping, inventory, etc.)

• Value is subjective (what if they don’t want it?)

• May feel less motivating for highly money-driven reps

When to Use Cash vs. Non-Cash SPIF Incentives

Pro tip: You can always mix and match. Use a small cash bonus for baseline activity, and offer a high-end non-cash reward for the top 3 performers.

What About SPIF Payments and Payroll?

A note on logistics:

• Cash SPIFs often require routing through payroll systems, especially if they’re added to regular paychecks.

• Some companies use prepaid cards to issue SPIF payments quickly and independently of payroll cycles.

• Non-cash SPIFs (like gifts or prizes) may also have tax implications depending on your region - so consult Finance or Legal before rolling out large campaigns.

Best Practices for Running SPIF Sales Incentives

• Set a clear, measurable goal (e.g. 15 demos booked)

• Limit the time frame (1–4 weeks is ideal)

• Keep rules simple (if they need a spreadsheet to understand it, it’s too complex)

• Promote it actively (email, Slack, dashboards)

• Celebrate publicly (recognition boosts morale)

Sales SPIF Examples

Final Verdict: Which SPIF Incentive Works Best?

Cash SPIFs are best when:

• You need fast action

• You’re targeting high-volume activities

• Your team is highly money-driven

Non-Cash SPIFs are best when:

• You want to boost morale or culture

• You’re recognizing standout performance

• You want to create lasting impressions

And remember: a smart SPIF program isn’t about the reward - it’s about the behavior it drives.

Related Articles

• SPIF Guide
• SPIF Meaning: Everything You Need to Know
• SPIF vs SPIFF: Which Term is Correct?
• How to Structure a High-Impact Sales SPIF Program: A Tactical Guide

Ready to Automate Your SPIF Program?

Bentega helps high-performing sales teams build and manage smarter SPIF incentive programs - whether it's cash, non-cash, or a mix of both. See how we can help.