# What is the difference between a spiff and a commission?

What is the difference between a spiff and a commission?

##### Post Metadata
- Posted at: over 3 years ago
- Author title: Pinned by G2 as a common question



## Comments
### Comment 1

A &quot;Spiff&quot; is a reward (monetary, a gift/prize) to induce/inspire sales behavior that is usually time-bound and short in duration for a SPECIFIC product/unit/service.  For example, if a company launched a new product or service and wants to &quot;goose&quot; or improve sales, a company may announce a &quot;Spiff&quot; of an additional $100.00 (or $25..) until the end of the month/quarter/year for every unit sold, etc.  This is almost always offered IN ADDITION to the standard commission/bonus plan.

A &quot;Commission&quot; is the variable compensation component of a salesperson&#39;s on-target earnings.  Commissions are typically paid weekly, or monthly whine &quot;Bonus&quot; payments are typically paid quarterly.  Sometimes, &quot;Commission&quot; and &quot;Bonus&quot; are synonymous, referring to the variable compensation component of OTE.  For example:

Salary + Commission (monthly) + Bonus (quarterly_= 100% of OTE.

Spiffs are used when sales may be lagging for certain products. services, etc.  I hope this helps!!

##### Comment Metadata
- Posted at: over 3 years ago
- Author title: Senior Manager, Broker Channel at Justworks




## Related Product
[Salesforce Spiff](https://www.g2.com/products/salesforce-spiff/reviews)

## Related Category
[Sales Compensation](https://www.g2.com/categories/sales-compensation)

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