Sales incentives are rewards—monetary or non‑monetary—offered to salespeople for achieving goals or specific behaviors. They go beyond base pay and commissions to drive motivation, align individual performance with company objectives, and improve retention.
This article explains what sales incentives are, the different types available, creative ideas to inspire your team, and why Toasty Card is an ideal tool for running incentive programs.
A sales incentive is any reward given to a salesperson for achieving a specific outcome, such as upselling or closing the most deals.
Incentives complement standard compensation packages and can significantly boost performance. Studies show that incentive programs increase long‑term performance by around 44%. Designing an effective program means understanding both monetary and non‑monetary options and tailoring them to your team’s preferences.
Sales incentives generally fall into two categories—monetary and non‑monetary.
These involve direct financial rewards that link performance to earnings. Common types include:
Cash bonuses or spot rewards for hitting targets.
Commissions that pay a percentage of each sale.
Profit sharing and stock options, giving reps a stake in company success.
Gift cards or prepaid cards, which offer flexible, memorable rewards and appeal to reps who prefer choice over cash.
SPIFs (Sales Performance Incentive Funds)—short‑term bonuses tied to specific KPIs that can significantly boost results.
These rewards deliver value without direct cash payments. Examples include:
Experience‑based rewards such as travel, concerts or fine dining.
Recognition and status through titles (“Top Performer”), awards, leaderboards and public praise.
Lifestyle and wellness incentives, like gym memberships, wellness stipends or remote work flexibility.
Time‑based rewards, such as extra vacation days, flexible schedules or compressed workweeks.
Team‑based incentives, which share rewards across the group to encourage collaboration.
Development incentives, offering training, conferences, mentorship or career pathways.
Gamified rewards, turning goals into engaging contests with leaderboards and surprise prizes.
Perks and upgrades, like premium parking spots, new gadgets or upgraded office equipment.
Incentive programs work best when tailored to your people and aligned with business goals. Here are proven ideas drawn from industry best practices:
Offer tiered cash or gift card rewards for hitting quotas. Gift cards from platforms like Toasty Card allow reps to choose what they value, increasing satisfaction.
Reward top performers with travel vouchers, sporting events or culinary experiences.
Feature leaderboards, “Salesperson of the Month” awards and public shout‑outs.
Provide gym memberships, meditation apps or spa packages to support health.
Grant extra vacation days or flexible scheduling to high performers.
Host group events, retreats or shared bonuses to encourage teamwork.
Fund courses, certifications or conference attendance.
Run sales contests with unique themes, leaderboards and surprise rewards.
Let top reps share in the company’s success.
Offer perks like premium parking, noise‑canceling headphones or ergonomic chairs.
Building an effective program involves more than picking rewards. Follow these steps to maximize impact:
Define clear objectives – Determine what behaviors or outcomes you want to promote (e.g., closing deals, customer retention or upselling).
Align with company goals – Tie incentives to your strategic objectives so reps work toward the broader mission.
Segment your team – Tailor incentives by role and performance level; one size does not fit all.
Communicate criteria transparently – Explain how to earn rewards and how they are calculated.
Ensure fairness – Maintain equity across territories and customer segments to keep incentives motivating.
Measure and iterate – Track results using metrics like quota attainment, revenue growth and retention rates, and refine your program accordingly.
Toasty Card (a digital gift card platform) simplifies sending incentives that your sales team will love:
Flexible rewards – Recipients can choose from hundreds of brands or prepaid cards, ensuring the reward suits their tastes.
Instant digital delivery – Send gift cards via email or SMS within seconds, perfect for timely sales contests or spot rewards.
Custom branding & personalization – Add your company logo and a personal message to each reward, reinforcing recognition.
Global reach & multi‑currency support – Toasty Card allows you to reward teams anywhere, making it ideal for distributed sales forces.
Zero fees & transparency – There are no activation or maintenance fees; unspent balances can be recovered, maximizing your budget.
Real‑time tracking – Monitor sends, redemptions and overall program ROI from a single dashboard, ensuring compliance and efficiency.
With Toasty Card, you can incorporate gift cards into your incentive mix, blending monetary rewards with personalization and choice.
Sales incentives are a powerful lever for motivating teams, driving revenue and fostering loyalty. By combining monetary and non‑monetary rewards—cash, commissions, gift cards, experiences, recognition, wellness programs and more—you can create a program that resonates with different personalities and aligns with your company’s goals.
Toasty Card enhances these programs by offering a seamless way to distribute digital rewards that employees genuinely appreciate. With flexible options, real‑time tracking and no hidden fees, Toasty Card is a smart choice for modern sales incentive programs.
What is the difference between commissions and sales incentives?
Commissions are a form of compensation paid as a percentage of sales, while sales incentives are extra rewards—monetary or non‑monetary—given for specific goals or behaviors. Incentives can be layered on top of commissions to encourage broader actions like customer retention or upselling.
How do I measure the ROI of a sales incentive program?
Track metrics such as revenue increases, quota attainment, win rates, customer retention and employee engagement before and after program implementation. Compare these gains against the cost of incentives to calculate ROI.
Are gift cards taxable as sales incentives?
In many jurisdictions, gift cards are considered taxable income for the recipient. Consult your finance team or a tax professional to ensure compliance with local regulations.
Can sales incentives reduce turnover?
Yes. When aligned with employee preferences, incentive programs increase engagement and satisfaction, which helps reduce turnover.
How often should I update my incentive program?
Review performance and feedback at least quarterly. Adjust reward types, goals and communication strategies based on what resonates with your team and evolving business needs.