Manufacturers and wholesale distributors use SPIFF incentives to reward the selling behavior of their dealer representatives. SPIFF programs are known to be effective at improving market share and increasing sales provided they are convenient for the reps to participate and scalable for the program admins to process. One key performance driver is the workflow processing time from when the spiff is first requested to when it is ultimately paid out. The shorter the better. However, admins must also apply controls to ensure that only proper payments are made.
Once a spiff payment is approved, there are different ways that it can be delivered. The selected spiff management system or program implementation contractor should offer different delivery methods that manufacturers and distributors can choose from.
Single Load Prepaid Cards: Single load cards are not the best fit for recurring payments. However, they are the least expensive option (and often free) because the payment providers are permitted to retain unspent funds.
Reloadable Prepaid Cards: Reloadable prepaid cards are a better fit for recurring payments because the card only needs to be issued once. Many prepaid cards offer cash withdrawal privileges which is attractive to the reps. You can also capture brand attribution because of the card’s ongoing use. 3. Reloadable cards are subject to escheatment laws so you should expect load fees for this payment method.
ACH Payment: ACH payment is attractive because it’s an electronic form and is deposited directly into the reps account. ACH fees make it more expensive, likely the most expensive form of payment. It also requires the rep provide their bank information which many individuals are reluctant to give up.
Zelle Disbursements: Zelle Disbursement is another electronic form of payment. It does not require bank information because of the Zelle integration with top banks. Offer Zelle does require that your bank has access to product, which only the largest banks to, and also requires the recipient’s bank is able to receive those disbursements which some don’t.
Check Payments: Check payments are the only form that requires physical delivery for each approved payment. For that reason, it is the slowest method and can also be expensive due to physical handling. However, brand attribution is captured and some reps prefer checks because they can mobile deposit into their bank account.