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Sales are undeniably essential pillars of a business’s survival and growth. But to achieve the best results, you need a high-performing sales team—and that requires the right sales incentives to keep them engaged. Without an exciting and meaningful sales rewards system, the sales process can become mundane and uninspiring, leading to lower motivation and performance.
Establishing a creative and well-structured sales rewards program ensures that your team stays focused, energized, and committed throughout the year. However, not all sales rewards ideas work equally well. Sales managers must ensure that the sales incentives offered are truly motivating and aligned with the goals of their reps.
For any sales target or challenge, money alone isn’t enough to sustain long-term motivation. Sales rewards act as a powerful driving force that keeps reps engaged and consistently striving to exceed their targets.
But what exactly are sales incentives, and why are they essential for your business? Continue reading to explore the importance of sales rewards and the different types that can transform your sales team’s performance.
Understanding sales incentives and rewards
Sales incentives are organizational investments and a valuable motivational tool for your sales team. They reward your team for exceptional efforts - demonstrating appreciation for their productivity. Rewards and incentives can come in many different forms to suit the preferences of your employees. For example, they can include things like:
- Merchandise
- Cash equivalents
- Gift cards
- Experiential rewards and more.
Each of these will have a different level of success depending on your employees. Digital incentives, however, are exceptionally versatile as employers can better personalize them to suit their employees. They can include downloads (music, movies, and eBooks), subscriptions, free access to high-value content, eGift cards, and digital awards.
What is a sales reward?
A sales reward is an incentive, money, bonus, or any prize the company offers to their sales team for achieving specific targets, meeting deadlines, improving sales, or fulfilling any pressing tasks. Sales rewards can be broadly classified into two types - Monetary rewards and Non-Monetary rewards.
As already emphasized, monetary rewards alone do not have enough power to motivate the sales reps fully. Cash rewards are those given apart from the standard commission when the specific sales target is reached. However, the importance of cash rewards cannot be understated as they are essential for the sales team to perform their intended job.
Here is where the non-cash or non-monetary rewards come into the picture to make sales reps do their job and effectively and efficiently make them perform sales tasks. Unlike traditional rewards, non-cash rewards are fun, engaging, and motivating to your sales team. However, it is the sales manager's task to create creative, fresh, meaningful, and practical non-cash sales rewards to keep sales reps’ morale high.
Sales incentives and rewards vs sales commissions
It’s important here to distinguish between incentives, rewards, and sales commissions. When an employee makes a sale, they might receive a bonus (usually in cash). This is a sales commission. Essentially, it’s part of an existing compensation plan that creates a sense of routine expectation.
On the other hand, sales incentives are earned rewards. They encourage positive behavior while remaining separate from said behavior. This is because it’s an extra item offered on top of the guaranteed salary or commission.
David Gordon, President of Channel Marketing Group, says these rewards “improve sales focus, sales team motivation, and targeted goal achievement”.
In other words, they possess a value beyond their monetary worth. They reward employees for their efforts and successes, which becomes a driving force of motivation. Many companies are starting to use digital rewards to drive productivity.
Besides getting your employees fired up, these digital incentives have several other benefits. They can provide a competitive advantage over rivals and serve as practical recruitment tools. After all, who doesn't want to join a company that will reward them for hard work?
Significance of sales rewards and inentives
Here are some of the significant sales rewards and incentives that you must know.
1. Direct and implied motivation
Sure, the sales rewards provide direct motivation to keep sales reps engaged and effectively fulfilling their tasks. The sales reward system also brings a fun and healthy competitive environment that enables the sales team to meet objectives, achieve targets, and contribute significant value to the entity.
Sales rewards indirectly motivate salespersons and increase their morale as they are recognized for their potential to meet targets early and are rewarded accordingly.
2. Increased engagement
As the sales team is awarded sales rewards, sales reps improve their focus and engage more in performing the tasks, resulting in an early meeting of targets. Breaking down the sales tasks into specific and achievable targets also helps the sales team to enjoy the process.
From this increased engagement, sales reps get their sales rewards and learn valuable sales skills and improve their knowledge, skill, and productivity.
3. Improved value
When the sales reps question themselves, ‘is this job worth doing’? Then the recognition brought by the sales rewards works its magic here. Sales rewards adequately recognize the sales rep's performance and award them accordingly.
The recognition of work by higher officials and sales managers makes sales reps value their work more, which increases respect toward job and work satisfaction. Sales rewards also bring the scope for growth to the sales reps. Here, we are talking about both the cash and non-cash rewards that can encourage and motivate the sales team.
However, the sales reward system does not need huge budgets and cash allocations to improve the sales reps' performance. With the proper implementation of a functional sales incentive plan, including creative sales rewards, sales managers can also incentivize the sales team's performance with reasonable budgets.
Digitizing sales incentives and rewards
Before digitizing your incentives, it’s essential to understand the appreciation and value that employees place on digital rewards. Every company is different. So, it might be worthwhile to do a quick survey amongst your employees to find out what form of incentive they’d prefer.
It’s also a good idea to think about basing these rewards' size on the achievement's magnitude. That way, you can encourage high productivity!
Take advantage of the upcoming holidays, like Valentine's or Mother’s Day. These special offers will let your employees know you value their work-life balance.
Personalized rewards are also a sure-fire way to make them feel appreciated. If your sales rep is a massive fan of the theatre, related incentives (like tickets to a show) will have an even more significant impact on their productivity.
Benefits of digitizing sales incentives and rewards
"An incentive is a bullet, a key: an often tiny object with astonishing power to change a situation" - Steven Levitt (American economist and co-author of Freakonomics)
1. They are in demand by employees
As we move toward a more digital world, some employees are starting to prefer digitized sales incentives and rewards over tangible ones. This is because of the instant gratification they provide and their versatility. For example, employees can choose what to spend an Amazon gift card on rather than having to physically go to a store if they receive a physical gift card.
2. They satisfy the need for speed
Digital incentives are ready-made for a modern company. A KPMG study on CEOs in 2016 emphasized the impact the digital economy has on the way organizations are developing, changing, and repositioning for growth. So, businesses looking to extend their reach and bring about immediate action should utilize them.
Fast action equals fast results - particularly since so many employees seek out immediate gratification for their work. Employees can easily redeem their rewards online, for example via email or by being downloaded into a mobile wallet. Incentives software can also automate payouts so that your employees never have to wait around for their rewards.
3. The encourage some friendly competition with gamification
Gamification is also very effective as not everyone is motivated by money. But, with gamification, employees can still gain a sense of personal achievement. This helps to set clear and transparent goals, as well as demonstrate how they can improve.
Using sales gamification software like Compass, you can easily incorporate gamification features into your digital incentives program. After all, who doesn’t enjoy a challenge? Your sales team will naturally want to work harder to outperform each other and constantly strive to reach the next milestone or level. Whether they like it or not, competition can give your employees extra push to up their game.
Like the famous Drew Carey once said: “Some people don't like competition because it makes them work harder, better.” We couldn’t have said it better ourselves!
4. They drive sales and increase customer acquisition
Rewarding your employees with sales team incentives will have a positive feedback effect. Your employees see their hard work being acknowledged and appreciated. In turn, they will increase their productivity and efforts to receive further rewards. For example, A sales motivation study claims that various forms of compensation have a 50% higher impact on sales than any changes in advertising investments.
A smart, motivated sales team will be more likely to seek out new and innovative ways to attract and retain customers, particularly if they’re rewarded for doing so. So, as they work harder, your business will see increased reach and more sales.
5. They contribute toward success
“Simply having rules does not change what people want to do. You have to change incentives.” - Jimmy Wales (American internet entrepreneur)
You can’t just tell people to work harder. You have to give them a reason to want to work! So, businesses looking for innovative ways to incentivize their employees should strongly consider digital incentives. Not only are they versatile, but they can be very effective and are starting to become more popular.
Digital incentives and rewards also allow businesses to connect with remote employees or those working from home. With a digitized program, employers and employees alike can track progress online. This makes it easy to recognize achievements and give out rewards.
So, with this type of digital incentive program in place, your employees will feel more motivated to work harder and reach their goals.
🎁Appreciate your team's hard work! Give gift cards to your sales team as a token of gratitude for their outstanding performance.
Luxury sales reward ideas
Here are some high-end reward ideas that go beyond cash incentives, offering exclusive experiences and premium perks to recognize top-performing sales professionals. These rewards not only enhance motivation but also reinforce a sense of prestige and achievement.
1. Gift cards
It’s still money but fancy and practical. Gift cards are the everyday non-cash rewards used by employees for various purposes. Sales managers can level these gift card rewards by making them personalized and tailored to the reps' needs and interests.
Providing personalized gift cards is a driving force to motivate each employee for what they value. You can also introduce a “choose your own reward” gift, increasing sales reps' enthusiasm.
🎁 Appreciate your team's hard work! Give gift cards to your sales team for their outstanding performance.
2. Grand lunch with the CEO
A great and luxurious way to improve employee engagement and develop connection, recognition, and a sense of belongingness is to arrange a grand lunch with the CEO. This enables employees to get to know their CEO and connect professionally with higher officials.
3. Premium memberships
Be it any genre, software, online learning platforms, music, movies, food, health, gym, sports, books, groceries, gadgets, etc., provide a monthly or annual premium subscription to the top sales reps. The more personalized, the better.
4. Wall of Fame recognition
The daily motivator and driving force. Dedicating an aesthetic wall to the best sales rep performers brings immense recognition and encouragement to the sales reps. This also enables daily motivation for the sales team to perform better daily. A decent wall of fame recognition should contain the proper photos of the winners, their names, and their work designation.
5. Family staycation
The most needed reward for every employee. Offering quality family time with staycation can make up for an exciting reward every employee would strive for. A staycation is a vacation but in a local city or town. This incentive is budget-friendly, practical, and most loved by employees.
Physical prizes & recognition ideas
Here are some of the physical prizes and recognition ideas that sales reps can use:
6. Wine club membership
The luxury feeling of tasting premium wine feels fancy and euphoric. Wine club membership attracts reps with an interest in wine and similar stuff. However, you can also provide other memberships such as golf, gym, yoga, and more customized to the sales reps’ interests.
7. Latest tech gadgets
Latest and top gadgets for the top performers. It’s common to desire to possess the newest tech gadgets right after their grand release. The latest technology, the trending iPhone, a new model of LED TV, the latest release of smartwatch or laptop model, a fancy speaker system, etc., makes a fascinating reward for the best sales reps. These can be pretty expensive, but it’s worth it.
8. Entertainment tickets
Most enjoyable and engaging. For the sales reps who love entertainment just in a while, entertainment tickets are the exciting rewards. These tickets are reservations made by the company in advance about various locations such as concerts, performances, musicals, plays, theme parks, sports events, drama, movies, etc.
9. Office work essentials
It's no wonder that the best equipment is essential for the best performance. With an organized and decent workspace, employees' focus and productivity increase as they spend a lot of time in their workspace achieving their targets.
Get the office desk, ergonomic office chair, extra storage cabinets, file organizers, office stationery, professional office workwear, etc. You can also check out the employees' Amazon Wishlist to learn about the office essentials they have been eyeing for a while. Something from Wishlist also fulfills the sales rep’s goal of buying the desired product.
Intangible sales reward ideas
Here are some creative intangible sales reward ideas that go beyond cash incentives. These rewards focus on recognition, growth, and unique experiences that keep your sales team engaged, motivated, and driven to achieve more.
10. Fine dining
For employees who believe in good food and a good mood, this fine dining incentive makes wonders. This incentive is both a prize and an experience that is hard to forget and can strongly impact the sales reps.
Offer fine dining experience in premium hotels or restaurants that are usually hard to get in. Choose the restaurant spot that can cater to everyone’s tastes in the sales rep team.
11. Paid offs
Nothing like a paid day off after working intensely for the whole week. The normal work week consists of 8-9hrs of work time each day and 40hrs of the work week, and overtime and extra hours to achieve daily targets.
Sales reps need the day off after working a full week, making this incentive a win-win situation. But make this a paid-off to show your respect and recognition for the sales team's contribution and hard work.
12. Work from home days
Some employees will be quite productive when they can work remotely rather than in the office. Some days need work from home to maximize sales team productivity certainly when in situations like traffic, extreme rain, etc.
13. New cabin space
A peaceful and decent workspace brings wonders to the sales team's productivity and focus. The fresh and new cabin space motivates employees to work hard by providing the right environment for their growth in the office. Provide new office space for top performers to enable top performance in the long term.
14. New parking space in office
This can decide the mood and focus of the employee in the case of a physical office work scenario. A poor parking space can take a toll on sales reps’ daily productivity. Provide hassle-free and functional, dedicated, private parking space for the best performers. This motivates them to do more and saves them a lot of parking time.
Personal development sales reward ideas
Here are some personal development-focused reward ideas that not only recognize achievements but also help sales reps grow their skills, expand their knowledge, and advance their careers. Investing in their development keeps them engaged and driven.
15. Paid training
The best way to add more value to the organization is to improve the skill set and knowledge of the employees. Companies can provide paid training to the best performers. Not only paid training but also paid online courses work too.
Customize the reward to match the sales rep interested courses and let them enhance their knowledge, thanks to their best performance.
16. Paid trips and conferences
Paid office trips to enable the employees to learn more and do more by not worrying about the budget. Provide the top performers with paid office trips or, in some cases, with non-office trips like camping trips, adventure trips, etc.
Paid conferences boost employees’ knowledge and skills, and they can gain more insights through office conferences. If the company is conducting any summits, provide the opportunity to represent the firm at summits, which can bring responsibility, recognition, and a sense of belongingness to the sales reps.
17. Language or hobby classes
Generally, the English language is not a strong suit for some employees. Here, you can provide language lessons in the English language, which helps employees to improve at communication and also at their work.
Any other desired language class also works as an attractive incentive. Some employees might be interested in hobbies like music, skating, sports, etc. Provide hobby classes that are more customized, the better.
Gift vouchers for best sales performers
As mentioned at the start, gift cards and vouchers make up an attractive incentive that can be used in day-to-day life and is also practical. Here are some of the best gift vouchers for best performance that can be provided by the company to sales reps for various categories as follows:
1. Food & restaurant gift vouchers
For the sales reps who love food, provide these vouchers, which make their tummy happy. Some of the popular food vouchers from Plum include KFC, Domino's, Starbucks, Zomato, Subway, and McDonald’s.
2. Fashion & lifestyle gift vouchers
Consider these gift vouchers for fashion aficionados and lifestyle gurus. Well-known fashion vouchers include Armani Exchange, Tommy Hilfiger, Myntra, PUMA, Woodland, and Superdry.
3. Health & wellness gift vouchers
These health and wellness vouchers carry pivotal weight in the era of significant work-life balance. Some widely used health and wellness vouchers are Apollo Pharmacy, DocsApp, Himalaya, Health & Glow, Mamaearth, Lakme Salon, and Kiehls.
4. Sports gift vouchers
These sports vouchers work for fitness fanatics and health-conscious employees. Widely used sports vouchers are Cultpass and Decathlon.
Sales reward best practices to motivate and retain top performers
A well-designed sales reward program does more than boost short-term motivation—it creates a culture of engagement, loyalty, and continuous performance. When structured correctly, rewards drive sales results, enhance job satisfaction, and reduce turnover.
Here are the best practices to ensure your sales rewards system delivers long-term success.
1. Align rewards with business goals
Sales incentives should encourage behaviors that directly impact business growth and customer success. Instead of simply rewarding revenue generation, consider aligning rewards with customer retention, deal size, or new business acquisition. When incentives reinforce the company’s core objectives, sales teams focus on actions delivering real value.
2. Offer a mix of financial and non-financial rewards
While monetary rewards like commissions and bonuses are essential, they shouldn’t be the only motivator. Non-financial incentives such as recognition programs, career advancement opportunities, or exclusive experiences can be just as impactful. Sales reps who feel valued beyond their paycheck are more likely to stay engaged and committed.
3. Ensure transparency and fairness
Unclear or complex incentive structures can create frustration among sales teams. A well-defined, transparent commission plan ensures that every rep knows how their earnings are calculated and what they need to achieve to reach the next level. Using real-time dashboards to track performance helps eliminate disputes and keeps motivation high.
4. Use gamification to drive engagement
Sales can be a demanding job, and introducing gamified elements makes the process more exciting. Leaderboards, competitions, and milestone-based rewards create a sense of friendly competition, keeping reps engaged. Public recognition of top performers also reinforces positive behaviors and encourages others to push harder.
5. Personalize incentives based on individual motivators
Not every sales rep is motivated by the same reward. While some thrive on cash incentives, others may prefer extra paid time off, flexible work options, or learning opportunities. By offering personalized reward options, businesses can cater to the diverse preferences of their salesforce, increasing overall engagement.
6. Reward consistency, not just big wins
A common mistake in sales rewards programs is focusing solely on top performers. While celebrating big wins is essential, consistent contributors should also be recognized. A tiered incentive structure ensures that all levels of sales performance are acknowledged, keeping every rep motivated, not just the high achievers.
7. Automate sales reward management
Manually tracking commissions and incentives can be time-consuming and error-prone. Automating the sales rewards process ensures accuracy, reduces disputes, and builds trust within the sales team. With real-time performance tracking and instant incentive payouts, reps stay motivated without chasing their earnings.
A well-executed sales reward program doesn’t just drive numbers—it creates a motivated, high-performing sales culture. When rewards are clear, meaningful, and aligned with business and personal goals, sales teams remain engaged, productive, and eager to achieve more.
Optimize sales incentives and rewards with Compass
Creating an effective sales incentive and rewards program is essential for motivating sales teams, but managing commissions, tracking performance, and ensuring timely payouts can be challenging. That’s where Compass steps in—automating the entire process to drive engagement, boost transparency, and maximize performance.
✅ Automated incentive calculations: No more manual errors or delayed payouts. Compass ensures accurate, real-time commission tracking, keeping sales reps focused on selling, not chasing payments.
✅ Real-time earnings visibility: Sales reps can see how much they’re earning in real time, eliminating confusion and ensuring motivation stays high.
✅ Gamified sales contests & leaderboards: Turn incentives into exciting competitions with AI-powered sales challenges, leaderboards, and milestone-based rewards that keep the team engaged.
✅ Customizable rewards & incentives: Not every rep is driven by the same reward. Compass allows businesses to personalize incentives, from cash bonuses to experience-based perks, ensuring meaningful recognition.
✅ Seamless CRM & payroll integration: Compass connects effortlessly with your existing CRM, payroll, and analytics tools, making sales rewards management smooth, efficient, and hassle-free.
With Compass, businesses can take their sales rewards and incentives to the next level, ensuring every win is celebrated, every effort is recognized, and every rep stays motivated to achieve more. 🚀
Ready to build a high-impact rewards program? Get started with Compass today!
Conclusão
The creative and engaging sales rewards ideas shared above are the most practical, functional, and easily implementable without any requirement for the vast budget allocations for the sales reward system.
Still, overwhelmed with how to implement the feasible sales reward system? Try Compass now! Most sales reward systems fail due to mismatched incentive amounts, delays in incentive payouts, and various other reasons. In this digital era, automating your incentive programs is about time.
Compass is one-of-a-kind advanced sales incentive compensation management software to turbocharge your salesforce. Compass software can accommodate every business's needs, from small start-ups to huge MNCs. Used across varied industries such as finance, logistics, outsourcing, consumer goods, SaaS companies, etc., Compass simplifies your most complex incentive programs.
