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.
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
When building a SPIF program, you’ll typically choose between:
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.
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.
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
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
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
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
| Use Case | Best Incentive Type |
|---|---|
| Urgent pipeline push | Cash SPIF |
| New product launch | Non-cash SPIF (create excitement) |
| End-of-quarter sprint | Cash SPIF |
| Team-building or morale boost | Non-cash SPIF |
| Wide team participation | Gift cards or tiered rewards |
| Top-performer reward | Premium non-cash prize |
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.
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.
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)
| Goal | SPIF Type | Reward |
|---|---|---|
| Book 10 demos | Cash | $100 bonus |
| Top 3 up-sellers | Non-cash | Bose headphones |
| Fastest to close deal | Cash | $300 bonus |
| Most CRM entries in a week | Non-cash | Extra PTO day |
| Team-wide new opp creation | Mixed | Gift cards for all, $500 for #1 |
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.
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.