Home » Library » eBook | 5 Guidelines to a Successful Spiff Program
Head of Marketing
January 21st, 2020
Est. reading time
Many vendors use channel SPIFFs or SPIF’s (Sales Performance Incentive Funds) to influence behavior with their channel partner sales teams. But what are SPIFFs and how can you ensure you run a successful SPIFF Program?
Vendors recognize the value and necessity of channel partners as their scalable go to market mechanism. Channel partners provide the means to sell products deep into markets that vendors do not have the ability or resources to reach. But channel partners have lots of choices as to which vendor’s products to sell in competitive situations. So, the challenge for a vendor is:
“How do you best drive your channel partners to position your products versus the competition?”
A SPIFF is a short-term incentive to drive sales in a set period of time. They can include dollar rewards, prizes, or loyalty points, but they are all aimed at one thing – driving your sales.
Any kind of activity can be rewarded including sales, net new logos, certifications, recruitment, meetings, distributor activity, and YoY growth to name just a few. And all of these can vary by partner type, geography or any characteristic or attribute the user wishes to add as a level to the program.
Sounds good, right? But anyone who has experience working in the channel will tell you that if it were that easy, they’d use Spiff programs all the time and that would be all they need to drive sales. Put out a SPIFF and the rest takes care of itself. But, in reality of course, things aren’t that simple.
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