Sales incentives are a powerful motivator that drives better performance across your team. The challenge is choosing incentives that align with your business and drive sales, rather than merely generating activity.
In this article, you’ll get 24 ideas for sales incentives for SMBs, organized by budget. These ideas are designed for small and growing sales teams that need incentives they can track, adjust and scale, without adding admin overhead.
You’ll learn how to build an effective sales incentive program with clear KPIs that you can track through your CRM tool and optimize as you go.
Key takeaways from sales incentives
An effective sales incentive program balances monetary and non-monetary incentives to keep salespeople motivated without creating burnout.
Match your incentive structure to sales cycle length and set performance goals that align with business priorities like expanding into new markets.
Track compensation plans with CRM leaderboards and custom fields so sales professionals see real-time progress toward incentive rewards.
Pipedrive helps sales leaders monitor sales incentive compensation with dashboards, automated alerts and detailed sales performance metrics –try it free for 14 days.
24 sales incentive ideas organized by budget
Different types of sales incentives work better for different sales motions.
A team closing $5,000 deals in 30 days needs frequent small wins to maintain sales momentum. A team closing $50,000 deals over three to four months requires fewer but more substantial milestone-based rewards that match the deal size and effort involved.
The following sales incentive ideas are organized by budget level, allowing you to match the reward size to your typical deal values and sales cycle length.
Low-budget incentives ($0–$500 per quarter)
Small budgets don’t mean ineffective programs. These non-monetary incentives and low-cost incentive rewards create friendly competition through recognition and flexibility.
For small teams, they work best when they’re simple, visible and tied to one clear behavior.
1. Gift cards ($50–$100 for unexpected wins)
Gift cards are the perfect format for quick wins, such as booking five sales demos in one week during a slow period or reactivating a stalled deal.
The key is choosing cards that really feel like rewards. A restaurant or experience-driven card feels like a treat. A gas or grocery card feels like reimbursement.
Note: Keep a stack of gift cards on hand so you can give sales team members an instant morale boost.
2. Extra paid time off (half or full day)
A half-day off after hitting weekly sales targets or a full day for monthly milestones often feels more valuable than a cash bonus.
Time often feels scarce in a way that small amounts of money don’t. Time off gives team members control over their schedule and a chance to do something they enjoy.
Paid time off incentives are especially effective during high-pressure sales periods, helping to prevent team burnout while showing appreciation as an employer.
Note: In Pipedrive, you can set up goals for weekly or monthly won deals to match your paid time off thresholds. When reps can see they’re 80% of the way to earning a day off, it creates momentum to close that last deal.
3. Best parking spot for top monthly performer
For jobs that need an on-site presence, designating the closest parking spot for the top monthly performer is a zero-cost reward with everyday impact.
Having a guaranteed spot reduces time spent searching for a parking space, which can feel stressful after a busy commute to work.
Change the winner each month and announce it during team meetings to turn a small perk into ongoing motivation.
4. Trophy or plaque
A rotating trophy or plaque for the top performer turns wins into something visible.
The winner keeps it on their desk, gets recognized in front of the team and sees their name added alongside past winners.
Tie the trophy or plaque to a clear outcome, such as the highest sales revenue or the biggest deal closed, to make it feel meaningful.
5. First choice of incoming leads
Top sales performers who secure the first pick of new customer opportunities gain an advantage that compounds over time.
They can cherry-pick leads that match their strengths and avoid wasting time on prospects that are a poor fit.
Rotate winners monthly to prevent the same person from dominating lead access indefinitely. Some teams limit the first pick to the three best leads per week rather than giving blanket priority on everything.
6. Team lunch or activity
A group reward that shifts the focus from individual competition to collective achievement.
Spending time together has the added bonus of team building, like this escape room activity the sales team from Homes.com chose:
Sales reps who bond over shared wins are more likely to help each other close deals later.
Delayed celebrations lose impact, so hold the activity within two to three days of hitting the goal while excitement is fresh.
7. Flexible schedule privileges (work from home days, flex hours)
Schedule flexibility appeals to sales professionals who prioritize work-life balance and can make a real difference to those juggling other responsibilities.
Award two additional work-from-home days per month to reps who exceed targets or the ability to start work later or earlier, depending on their preference.
These low-budget options work best for small teams or when building a new sales incentive plan. Test a few to see what motivates your specific sales reps and drives profit growth.
Mid-budget incentives ($500–$2,500 per quarter)
Mid-range incentive rewards often combine cash with meaningful experiences or professional development.
These performance-based options help motivate short-term wins and also contribute to retention of top sales talent.
8. Quarterly cash performance bonuses
Cash bonuses are one of the most universally motivating options for salespeople because they’re simple, predictable and directly tied to results.
Structure bonuses as a percentage of sales quota achievement within your sales compensation plan. For example, 5% of the base salary at 100% quota, 10% at 125%, 15% at 150%.
Percentage-based structures work exceptionally well for small businesses. Costs scale naturally with revenue rather than creating fixed overhead.
Note: Pay the bonus within two weeks of quarter-end, even if the client hasn’t paid the invoice yet. A timely reward makes sure motivation stays high.
9. Experience rewards (nice dinner, concert tickets, sporting events)
Memorable experiences create lasting impact beyond cash value.
Give vouchers rather than picking specific events (unless there’s one you know a rep is interested in). It may not feel as exciting, but a $300 voucher for concerts is actually more personal, as it lets salespeople choose artists they genuinely want to see.
Highlight or celebrate the experience in team channels when possible. Sharing the moment reinforces recognition and inspires others to get the reward.
10. Tech upgrades (laptop, headphones, standing desk)
Equipment upgrades improve daily work quality for months or even years after the initial win.
Create a catalog of options at various price points ($200–$800) and let the winners select their choice. Noise-canceling headphones matter more to sales reps in open offices. Standing desks appeal more to people with back problems.
Sales professionals should own the equipment so it feels like a real incentive reward rather than borrowed company property. The ongoing daily reminder of their achievement sustains motivation longer than a one-time cash bonus.
11. Professional conference or training event attendance
Conference attendance combines recognition with skill development.
Cover registration, flights and hotel ($2,000–$3,500) for major industry events. The cost can feel like a significant investment, but the opportunity to learn and network often makes a conference more worthwhile than a purely recreational trip.
Ask attendees to bring back three practical takeaways to share with the team. A concise presentation or written summary ensures that the investment benefits everyone, not just the winner.
12. Monthly sales contest
Run month-long competitions with a range of specific incentives or prizes, like this sales contest shared by new home builders Coventry Homes:
Focus sales contests on specific behaviors that drive the desired results. Instead of general “most deals closed”, target “most upsells to existing customers” or “highest average deal size”.
Generic contests just reward your usual top sales performers. Targeted contests spread wins across different sales team members.
13. Professional development budget for courses or certifications
Education budgets show that you’re investing in reps’ long-term growth, not just this quarter’s results.
For example, offer $1,000 per year and let reps pick courses, certifications or coaching that interest them.
Letting your staff choose leads to better results than forcing attendance at generic sales seminars.
14. Temporary commission rate increases
Raising rates above your standard commission structure for a specified period focuses attention on specific products or markets.
For example, increase commission from 8% to 12% for 90 days on new product lines or underperforming territories.
Give at least two weeks’ notice so reps can adjust their pipeline. That way, you ensure everyone has a fair chance to compete, rather than rewarding only deals that were already close to being finalized.
15. Additional week of paid vacation
Extra vacation is often more meaningful than cash for tenured salespeople, who may already earn top salaries and value time to recharge.
Offer an additional five days of paid time off to representatives who consistently maintain top-tier performance throughout the year.
This incentive helps retain seasoned talent who prioritize work-life balance. For example, representatives who hit 120% of their annual quota earn an extra week off for the following year.
These sales incentive plan examples balance meaningful impact and manageable costs.
They work best for teams of five to 20 reps, where each person’s effort matters and the incentives can motivate everyone without overspending.
Higher-budget incentives ($2,500+ per quarter)
Larger budgets enable transformative incentive rewards that create lasting career impact and strengthen long-term retention.
For growing SMBs with a proven sales force and predictable revenue, higher-budget incentives work best as milestone rewards rather than ongoing programs.
For smaller teams, these ideas are often aspirational until revenue and headcount increase.
16. Significant annual bonuses (10–20% of base salary)
Annual bonuses reward consistent results across multiple quarters.
Structure payouts based on yearly quota: 10% of base at 100% quota, 15% at 120% and 20% at 140%.
Pay bonuses in January and recognize recipients in a team meeting or with a brief announcement. Public acknowledgment gives the reward more impact and sets a positive tone for the year.
17. President’s Club trip (annual trip for top performers)
Exclusive trips motivate salespeople by creating visible, aspirational goals.
While taking the top 10% of your sales force on a three- to four-day resort trip may have a high upfront cost, it inspires competition throughout the year.
Customer experience company Broadvoice has a dedicated page for its President’s Club.
The page features motivational photos from previous trips and outlines the sales goals reps need to reach to secure their spot on the next one.
18. Equity grants or profit-sharing programs
Ownership stakes motivate reps when they believe the company will grow or remain profitable.
Grant stock options or profit-sharing percentages to top performers who have been with the company for multiple years.
If the company is unlikely to exit or grow rapidly, profit-sharing tied to quarterly or annual performance is a better alternative.
19. Personalized dream experiences (customized to individual interests)
Tailored experiences create a more substantial emotional impact than generic trips. Budget $2,000 to $5,000 and ask winners what they genuinely want.
A $2,000 experience that matches a rep’s passions is more memorable than a $5,000 generic luxury trip. For example, a motorsports fan would value racing exotic cars over a spa weekend.
20. Vehicle allowance or company car
Car programs are well-suited for industries that require extensive travel to client sites, such as real estate or medical sales.
Provide a $600 monthly vehicle allowance or lease a vehicle to top sales performers who consistently deliver results.
21. Paid sabbatical (extended time off)
A paid sabbatical gives top performers extended, fully paid time off as a reward for long-term results and loyalty.
Offer four to six weeks of paid leave after three consecutive years of top performance.
Sabbaticals reward long-term commitment rather than short-term results. For SMBs, it’s essential to plan ahead. Either stagger time off or prepare coverage so small sales organizations can absorb a long absence.
22. Executive coaching or mentorship program
Professional coaching accelerates career development for high performers.
Hire executive coaches for top sales performers for six months. The investment signals that you see them as future sales leaders, especially when you pair the coaching with clear advancement paths in the company.
Download your guide to managing teams and scaling sales
23. Relocation assistance or permanent remote work privileges
Permanent remote status or relocation funding attracts and retains salespeople who prioritize flexibility over salary increases.
Cover a set amount in relocation costs or offer permanent remote status for top performers.
Location flexibility is increasingly valuable because it gives reps more control over how and where they work. Research also shows that working from home increases job satisfaction by 67%.
24. Family vacation package (company-paid trip for rep and family)
Fund week-long trips for the rep and their family to recognize the personal sacrifices behind sustained high performance.
Sales roles often require long hours, so travel and weekend work that involve family acknowledges that support in a way cash rewards can’t.
These higher-budget incentives are most effective for established sales teams with high-value sales cycles that generate enough profit margin to justify the spend.
How to choose the right sales incentives for your team
The right sales incentive structure drives measurable results when it matches your team’s workflows and motivations.
Use these four factors to pick incentives with the best chance of success.
Ask your team what they value to avoid an incentive mismatch
Getting direct input helps you avoid rewards that fall short of the mark.
Conduct an anonymous survey once a year to determine which incentives your sales team genuinely values. Include questions like:
Rate these incentive rewards from most to least motivating:
- Experience vouchers
- Cash bonuses
- Professional development
- Extra paid time off
Match incentives to your sales cycle length so your team stays engaged
Your sales cycle duration should dictate the timing of rewards to maintain high motivation.
With short sales cycles, reps see results fast. If rewards are delayed, they feel disconnected from the effort they just put in. Quick rewards reinforce the behavior while it’s still fresh and keep energy high.
With long sales cycles, results take months. If the only reward comes at the end, reps can lose momentum or focus on easier wins. Progress-based rewards give regular signals that their work matters, even before the deal closes.
Align incentives with business goals to drive your desired outcomes
Current business goals should drive your sales incentive plan design.
Identify your top priority for the next quarter. Use those priorities to drive the specific outcomes you need most right now, for example:
Expanding into new markets. Offer a bonus for the first five deals in the target region.
Growing deal size and profit margins. Create tiered bonuses that increase in value as deal amounts rise.
Launching new products. Double commission on the new product line.
Improving close rates. Offer extra paid time off to representatives who exceed win rate benchmarks.
Shortening sales cycles. Hand out cash prizes for deals closing 20% faster than average.
Reward outcomes, not sales activity. Bonuses for “most calls made” risk creating busy work. Bonuses for “most qualified opportunities” drive revenue.
Be realistic about budget constraints to sustain your incentives over time
Sustainable sales compensation plans are more effective than one-time splurges.
Before designing your program, calculate what you can consistently afford and get buy-in from key stakeholders like your CEO or finance team.
To build a simple incentive budget:
Decide what portion of revenue to allocate for sales compensation
Divide that amount across your sales team to determine per-rep incentive spend
Design compensation plans and incentive levels that fit within that per-rep budget
Start small and optimize as you go. If expensive incentives don’t move performance metrics, scale back and redirect spending to what works.
How to implement and track your sales incentive program
Sales incentives only work long-term when you can track performance and adjust rewards based on real data.
How you implement these incentives determines whether your program drives closing deals and improves sales KPIs. Here are three straightforward steps to ensure everything runs smoothly and delivers measurable impact.
Set crystal-clear rules before launch
Clear boundaries create fair competition across teams and keep everyone motivated.
Post rules before the incentive period starts that answer:
What specific actions or results earn incentive rewards
How you’ll measure sales performance
When tracking periods start and end
When you’ll announce winners and send payouts
Who’s eligible
Whether there are any caps on earnings
Use a company wiki page, shared document or team channel pinned message to make sure the rules are always accessible.
Track performance transparently with your CRM
Keeping sales performance visible in real-time keeps competitive reps motivated and focused on achieving their goals.
Set up custom dashboards in a customer relationship management (CRM) platform to display won deal value, deal conversion rates and percentage toward quota.
If you’re using a sales CRM, such as Pipedrive, you can make the dashboard your team’s homepage so they see their standings every time they log in.
Create custom deal labels, such as “Spiff eligible” (for short-term bonuses on specific products) or “New product sale,” to track deals tied to incentives.
Filter reports by these labels to calculate bonuses accurately.
Set Pipedrive workflow automations to notify managers and representatives when they reach specific thresholds.
For example:
Deal value > $50,000 → Email noting spiff qualification
Deal reaches “Negotiation” stage → Slack celebration
Monthly won deals hit 10 → Task to order reward
Lastly, share rankings with leaderboards on a physical whiteboard or via weekly emails. Public visibility fosters healthy competition and provides top performers with recognition.
Measure whether the incentives are working
To determine the effectiveness of your sales incentives, track results using clear, measurable KPIs.
Review these metrics quarterly:
What to track | How to measure |
Deal performance | Compare average deal size, win rate and sales cycle length before and after the program. Look for at least a 15% improvement in one metric. |
Pipeline health | Use Pipedrive reports to calculate incentive cost as a percentage of revenue. If costs exceed 7% without a higher deal value or volume, adjust the program. |
Quality vs. quantity | Track not just deals closed, but also customer retention and upsell opportunities to ensure incentives drive high-value relationships. |
Use these insights to understand which incentives drive sales and guide optimization for any future programs.
Common sales incentive pitfalls and how to deal with them
Sales incentive programs are most effective when they’re simple and clear.
Watch out for these common challenges:
Challenge | How to handle it |
Rewarding activity instead of results | Focus on meaningful outcomes like deals closed or demos booked |
Targets that feel unreachable | Base goals on past overall sales performance so reps see them as achievable |
Complicated calculations for rewards | Use two to three clear metrics instead of elaborate scoring or point systems |
Changing rules during a program | Set rules upfront and make adjustments only for the next period |
Paying out late or inconsistently | Build payout timelines into your process and communicate clearly if you expect any delays |
Review your data quarterly to spot early warning signs, such as reps ignoring non-incentivized deals, competing for leads, rushing closes or easing off after hitting targets.
Use those insights to adjust your incentives between periods, not during them.
Final thoughts
The best sales incentive programs for small teams are consistent, easy to track and improve over time. They’re the ones reps understand immediately and can picture themselves winning.
Choose rewards that match your team and sales process, then measure regularly to see whether they’re driving the metrics that matter.
Make tracking your sales incentives easy with Pipedrive’s custom labels, dashboards and automated workflows. Try it free for 14 days.
