Sales teams thrive on motivation, and let’s face it, targets don’t smash themselves. If you manage a team responsible for driving revenue, you’ve likely heard the buzz about the best sales incentive schemes. Especially as 90% of the top performing businesses use sales incentives to reward and motivate their sales teams. But what really makes an incentive scheme work? And more importantly, how do you get started if you’ve never implemented one before?
Whether you’re a Sales Manager looking to boost team performance, a HR leader tasked with employee rewards, or a business owner wanting to see sharper results, this blog will walk you through the essentials of building a sales incentive scheme that delivers real impact.
What Is a Sales Incentive Scheme?
A sales incentive scheme is a structured program designed to motivate and reward your sales team for achieving specific goals. These goals can range from closing deals, upselling, hitting revenue targets, increasing customer retention, or even improving CRM data quality. Essentially, it’s about encouraging the right behaviours in your sales force and celebrating the wins, big or small.
Incentives can take many forms: cash bonuses, gift cards, experiences, travel, prizes, or even public recognition. The beauty of sales incentive schemes is how flexible they can be, depending on your business goals, culture, and team dynamics.
Why Your Business Needs a Sales Incentive Scheme
Still on the fence about introducing one? Here’s why businesses are investing in some of the best sales incentive schemes out there:
Boosts Performance
Sales incentives work because they tap into both intrinsic and extrinsic motivation. When employees know there’s a reward tied to their efforts, they’re more likely to push harder and aim higher.
Improves Morale and Retention
Incentive schemes show your team that their hard work is noticed and valued. Recognition boosts job satisfaction and lowers staff turnover which is a win-win for your team and your bottom line.
Drives Revenue
With the right structure, an incentive program aligns individual performance with business goals. That means more deals closed, better conversion rates, and stronger customer relationships.
How to Get Started with a Sales Incentive Scheme
1. Understand the Different Types of Sales Incentive Schemes
There’s no one-size-fits-all, but here are a few common types:
- Commission-Based Incentives – Still popular, but works best when tied to individual or team KPIs.
- Tiered Incentives – Rewards increase as targets are exceeded (great for stretch goals).
- Team-Based Incentives – Encourages collaboration rather than competition.
- SPIFs (Sales Performance Incentive Funds) – Short-term, fast-win incentives for specific goals or products.
Top Tip: It’s okay to mix and match! Hybrid models often work best.
2. Set Clear, Achievable Goals
Ambition is great but your targets should also be realistic and measurable. Involve your sales team in the goal-setting process to increase buy-in and transparency. Align goals with broader business objectives. Use past performance data to set benchmarks and make sure to define timelines clearly (monthly, quarterly, campaign-based).
3. Tailor the Scheme to Your Team
A common mistake is using a blanket approach for all salespeople. Consider factors like seniority and experience level, their role (BDR vs Account Manager vs Customer Success) and geographic location (especially with global teams). Tailoring your approach leads to fairer, more motivating incentive programs.
4. Test and Iterate
Start small. Launch a pilot scheme with one sales team or product line and gather feedback: What worked? What didn’t? Did behaviour change? Did performance improve? Then iterate and roll out more broadly once you’ve nailed the formula.
5. Communicate and Celebrate
No matter how brilliant your scheme is, it won’t succeed without great communication. Make sure everyone understands the goals, the rewards, the timeframe and the rules. And when someone hits a target, shout about it! Recognition is as valuable as the reward itself.
Incentive Ideas: More Than Just Money
Sure, cash is nice. But is it the most effective motivator? Not always. Studies consistently show that non-monetary incentives often deliver greater long-term impact, especially when they’re memorable, personal, or aspirational. Here are a few ideas to supercharge your scheme:
Gift Cards
Versatile and flexible, multi-choice gift cards like Leisure Choice UK and Leisure Choice USA let recipients pick their perfect reward from luxury dining to spa days to adrenaline experiences. Great for teams with diverse interests.
Travel & Getaways
Offer weekend hotel breaks, city getaways, or scenic retreats. Travel incentives are exciting and create lasting memories, which means your brand stays top of mind long after the trip. Here at Virgin Incentives, we’ve run our own successful sales incentive scheme which resulted in Jack, our client relationship manager, being rewarded with a Virgin Gift Card which he spent with Virgin Atlantic on a holiday to Orlando. Hear about Jack’s story here.
Tangible Rewards
Think premium gadgets, branded merchandise, or subscription boxes. Just make sure the reward matches the achievement. No one wants to receive a keyring for closing a million-pound deal.
Personal Development Opportunities
For some employees, growth is the best reward. Consider incentives like training courses, mentorship sessions, or conference tickets.
Experience Days
Want to truly stand out? Offer unforgettable experiences like hot air balloon rides, supercar drives, stadium tours, or even helicopter flights. These types of rewards feel exclusive and are often talked about for months, reinforcing a positive connection with your business. (And yes we’ve got all of these at Virgin Incentives)
Common Mistakes to Avoid
Before you roll out your shiny new incentive scheme, here are a few pitfalls to steer clear of:
- Setting unachievable targets – Leads to disengagement and resentment.
- Overcomplicating the rules – If it’s too confusing, people won’t bother.
- Only rewarding top performers – Creates a culture of “winners” and “losers.”
- Forgetting to update or refresh the scheme – Keep it dynamic and relevant.
Ready to Build Your Own Sales Incentive Scheme?
If you’ve made it this far, you’re clearly serious about finding or creating one of the best sales incentive schemes for your business. The good news? You don’t have to go it alone.
At Virgin Incentives, we are experts in helping businesses create compelling, flexible, and memorable reward schemes through our range of experience-based incentives and corporate gift cards. Whether you’re rewarding one superstar or an entire team, we’ll help you choose rewards that truly excite and inspire. Looking to get started? Talk to our team below about building the best sales incentive scheme for your business.
