Spiff
A spiff is a bonus payment paid to salespeople for selling specific vehicles or achieving specific outcomes. Also called bird dogs when paid for referrals.
A bonus payment (typically $50–$500) paid to salespeople for selling specific vehicles or achieving specific outcomes. Manufacturer spiffs reward selling slow-moving inventory, while dealer spiffs may incentivize aged unit sales or specific product penetration. Also called 'bird dogs' when paid for referrals. Spiffs are a legitimate motivational tool, but when combined with desk overrides they can mask the true cost of moving a unit — the spiff income appears on the compensation side while the margin loss from the override sits on the deal side.
Category: Finance
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