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authello

Head of Partnerships

Contributor
Fire Starter
Member
+3

SPIF Ideas - please help

Hi! I am working on a SPIF program to help incentivize referrals through a partner we're working with. Would love your feedback and additional ideas.


Context: It's a new partnership and I'd like to help get their Sales team excited to refer to us. They will get commission for closed deals, but I want to do something extra to help kickstart the program. Here's what I'm thinking for triggers:

1) First referral that closes

2) Most referrals that close in first 90 days (1st Place, 2nd Place, 3rd Place)

3) Largest deal that closes in first 90 days


Here's what I'm thinking for rewards, but would love your thoughts and ideas:

1) 50-inch Samsung Smart TV

2) 1st place: $1,000 Amazon Gift Card, 2nd place: Spa day for two (massages and facials), 3rd place: $300 Live Nation Gift Card

3) One week trip to all-inclusive resort in Costa Rica (resort + airfare for two)

💰 Compensation
🧢 Sales Management
👊 Referrals
13

21 comment

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poweredbycaffeine
WR Lieutenant
5
☕️
Dog, how far are your margins that you’re offering these levels of reward?
authello
Contributor
0
Head of Partnerships
Not sure if I'll be able to get this approved but this is what I'm thinking to propose to my boss. I'm estimating total cost of all of these together at $5.5K.
poweredbycaffeine
WR Lieutenant
2
☕️
The Costa trip alone will be 3-4
authello
Contributor
0
Head of Partnerships
Agreed, I estimated $3K for that based on packages and flights on Expedia. That's the grand prize.
authello
Contributor
0
Head of Partnerships
How do you like the prizes? Any tweaks or alternative suggestions?
poweredbycaffeine
WR Lieutenant
1
☕️
I’d offer choice between 2-3 things rather than saying it has to be a TV. I have two 50” in my house so I don’t need a third. I also don’t think I want a spa day, maybe a choice there as well.
authello
Contributor
0
Head of Partnerships
Poweredbycaffeine, what are some prizes that would be appealing to you?
jefe
Arsonist
4
🍁
That's a lot better prize selection than I'd assumed when I saw the title of your post.

Amazon GCs and experiential stuff is solid, but don't choose a TV for someone. Flexibility is so much more important, and a lot of people won't need that.

Keep in mind when it comes to a trip that some people have children. You might be best off with #2.
authello
Contributor
1
Head of Partnerships
jefe, great point about flexibility. what are some prizes that would appeal to you?
jefe
Arsonist
2
🍁
Quick note - upvote people replying to your post :)

Honestly I'd just go with Amazon or Visa GCs... They provide the flexibility to do anything you want.

Trips can be tough with a family, things like spa for 2 aren't motivating for single people. Deciding what big ticket item people will want/need is a shot in the dark.

Amazon or Visa gives the most control and flexibility. With the former they can buy anything they want, with the latter they can do the same, or pay bills, or go out for dinner/to the spa.

Cash equivalents are king here, my friend.
AnchorPoint
Politicker
2
Business Coach
What if the largest deal doesn't come close to covering your cost of the program?
oldcloser
Arsonist
0
💀
My first thought, unless some really fat, non-negotiable margins are built in.
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Those are all great spiffs but from my experience cash is king and reps seeing other reps making money is the best motivator out there.

So I would just consistently pay reps directly and make sure it’s seen by everyone.
SportsSalesGuy
Tycoon
2
Enterprise Account Executive
Cash always. These type of rewards are for presidents club IMO or for like "top performer of the qtr". I like them though but it wont motivate partners as much as cash will.

It should be something to the effect of spiff kickers for commission. Ontop of what they already are going to be paid for commission rate.

Example: 1st deal - Regular commission rate

2nd deal - 1.25x commission rate

3rd deal -1.5x commission rate

Play with the numbers how you want but i think that would be more enticing than what you have. Those rates are "fixed" these also the multipliers rate is fixed, depending on how big the deal is, could really help make extra cash and also incentivize someone to keep referring you and your org.
Beans
Big Shot
2
Enterprise Account Executive
Beautiful SPIFFS, that's all I got.
HappyGilmore
Politicker
2
Account Executive
Great spiff options, would definitely include some sort of cash option as well for those that would want to take it.
BigShrimpin
Catalyst
2
Account executive
just reading this i would like to give you a referral and i have no idea what you sell
ZVRK
Politicker
1
Enterprise Account Executive
These are all great, but will there be quota recognition for these reps if they refer you a lead and that led closes? i.e. A rep refers you a lead, lead closes with 50,000 ACV, if the quota recognition is set at 50%, then it`s 25,000 ACV off of their target for the year. This requires a more mature partnership, but this works (out of experience).
SalesBeast
Politicker
1
Sales Director
All good ideas. Run this spiff by the other company and their management first. Some companies will get pissed if you just start pushing their employees to give you things and not concentrate on their own business (had an experience recently like this).
Shocker
Politicker
1
Account Executive
Overall - great idea and I applaud this.
Skip the set dollar amount gift card. Goal here should be to provide experiences, or things that have a high perceived value and lower cost for you. This will also help w/ tax implications for recipients.
You give cash or gift card = more taxes uncle sam pulls out (unless you are going big dog style and giving incentives after paying the taxes).
Also - forget the 50 inch TV. "Gotta pump those numbers up. Those are rookie numbers in this racket". Go to Costco and get an 85 inch TV for $800 on sale. Nobody goes to a bar and says "the TVs are too big, I don't want to watch the game here". A 50 inch TV is like a fake boob job w/ a B cup.
Chep
WR Officer
0
Bitcoin Adoption Specialist
Experiences as a team > normal prizes

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