IOI vs SPIFF
IOI (Indication Of Interest) and SPIFF (Sales Performance Incentive Fund) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: IOI refers to indication of interest, while SPIFF refers to sales performance incentive fund — they describe different things even when they show up in the same sentence.
IOI — Indication Of Interest
Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers.
SPIFF — Sales Performance Incentive Fund
Short-term cash bonus paid to reps for selling a specific product, hitting a narrow goal, or closing within a window. SPIFFs are a scalpel, not a strategy — useful but easy to overuse.
When to use IOI
Reach for "IOI" when the conversation is specifically about indication of interest. Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers.
When to use SPIFF
Reach for "SPIFF" when the conversation is specifically about sales performance incentive fund. Short-term cash bonus paid to reps for selling a specific product, hitting a narrow goal, or closing within a window. SPIFFs are a scalpel, not a strategy — useful but easy to overuse.
FAQs
What is the difference between IOI and SPIFF?
IOI stands for Indication Of Interest — Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers. SPIFF stands for Sales Performance Incentive Fund — Short-term cash bonus paid to reps for selling a specific product, hitting a narrow goal, or closing within a window. SPIFFs are a scalpel, not a strategy — useful but easy to overuse.
Are IOI and SPIFF the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. IOI = Indication Of Interest. SPIFF = Sales Performance Incentive Fund.
When should I use IOI vs SPIFF?
Use IOI when you're specifically referring to indication of interest. Use SPIFF when the topic is sales performance incentive fund.