SPIFF
Also called SPIF
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is SPIFF?
A SPIFF is a small cash bonus paid to a salesperson for selling a particular product or reaching a short-term target, on top of regular pay. In distribution, manufacturers frequently fund SPIFFs to get distributor reps and counter staff to push their lines.
How it works
Distributors that allow manufacturer-funded SPIFFs set rules for them, because a bonus on one brand can pull reps toward it even when another product suits the customer better.
SPIFF example
For one quarter, a tool manufacturer pays counter staff $10 for each of its new cordless drills they sell.
Related terms
- Manufacturer’s representativeA manufacturer’s representative is an independent salesperson or agency that sells a manufacturer’s products on commission, without buying or stocking any.
- Gross marginGross margin is the share of sales a distributor keeps after paying for the goods it sold: gross margin % = (revenue − COGS) ÷ revenue.
- UpsellAn upsell is a sale of a higher-grade, larger or more capable version of the product a customer was already planning to buy.
