Since SPIFs are focused on incentives, your prize selection is crucial in developing a successful strategy. If your participants aren’t excited about your offer, they may be less inclined to perform.

There are several ways to recognize and reward sales performance. It all boils down to developing a customizable incentive scheme to keep the sales team motivated and pushing for improved results.

Benefits

• Helps target key individuals: This allows you to target key individuals in the partner community to promote desirable behaviors in line with vendor goals.
• Counter competitors: Helps you respond quickly to a new competitor’s program and maintain market share.
• Increases sales momentum: A SPIF is a well-known motivating tool for increasing sales momentum among your channel partners.

Challenges

• Response to unforeseen circumstances: SPIFs are often planned reactively to unpredictable market or organizational dynamics. However, poor planning or execution might have a detrimental long-term impact.
• Unclear Incentives: When sales staff can’t clearly understand how they’re going toward the SPIF, they won’t be consistently encouraged to pursue it, limiting the impact of SPIFs.

Example

The Vonage Channel Partner Program creates a holistic partnership experience with immense income opportunities to motivate its partners. As a Vonage channel partner, you have access to speedy in-house customer and technical assistance. Training and certifications (both live and on-demand), sale promotions funds (SPIFFs), and many more incentives.

From a SPIF perspective, Vonage allows earning up to 8X MRR (Monthly) based on the duration of the contract and the number of deals closed.