What are payments made to a reseller's salespeople to incentivize sales called?

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Prepare for the University of Central Florida MAR3391 exam with engaging questions and detailed explanations. Enhance your understanding and excel in your professional selling skills!

The correct term for payments made to a reseller's salespeople to incentivize sales is commonly known as "spiffs" or push money. Spiffs are short-term financial incentives designed to encourage sales personnel to promote a specific product or brand. Retailers often use these incentives to stimulate sales of certain items by providing their sales staff with extra compensation or bonuses for pushing those products over others. The aim is to drive immediate sales performance and can be particularly effective in competitive markets.

Understanding this concept is crucial for recognizing how companies motivate and influence the behavior of sales teams in retail environments. Other types of payments, such as bonuses or general incentives, might apply to broader compensatory structures but do not specifically refer to the targeted, product-specific incentives that spiffs represent. Thus, spiffs are distinctly recognized as immediate rewards tied directly to the sales of particular products, making them a powerful tool in sales strategies.