When planning a SPIFF (Sales Performance Incentive Funding Formula) program, here are 4 potential downsides to consider:

1. Short-Term Focus: SPIFF programs may encourage a short-term focus on achieving immediate goals, potentially at the expense of long-term customer relationships or sustainable sales strategies.
2. Competition Among Team Members: While competition can be healthy, SPIFF programs might lead to unhealthy competition among team members, causing tension and negatively impacting team dynamics.
3. Unintended Consequences: Sales representatives might prioritize earning SPIFFs over providing the best solution for the customer, leading to potential dissatisfaction or strained relationships.
4. Costs: Depending on the structure of the SPIFF program, it can be costly for the company, especially if the incentives are not aligned with overall business objectives or if they do not result in a significant increase in sales.

In summary, when running a SPIFF program, careful consideration is needed to avoid potential negative consequences and ensure alignment with long-term business goals.

We invite you to Contact Us to start a discussion on how we can successfully manage a SPIFF program for you and stay away from negative side effects.