NDR vs SPIFF
NDR (Net Dollar Retention) 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: NDR refers to net dollar retention, while SPIFF refers to sales performance incentive fund — they describe different things even when they show up in the same sentence.
NDR — Net Dollar Retention
Revenue retained from existing customers including upsells and downgrades, net of churn. NDR above 100% means the install base is growing on its own — the single best leading indicator of a healthy SaaS business.
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 NDR
Reach for "NDR" when the conversation is specifically about net dollar retention. Revenue retained from existing customers including upsells and downgrades, net of churn. NDR above 100% means the install base is growing on its own — the single best leading indicator of a healthy SaaS business.
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 NDR and SPIFF?
NDR stands for Net Dollar Retention — Revenue retained from existing customers including upsells and downgrades, net of churn. NDR above 100% means the install base is growing on its own — the single best leading indicator of a healthy SaaS business. 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 NDR and SPIFF the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. NDR = Net Dollar Retention. SPIFF = Sales Performance Incentive Fund.
When should I use NDR vs SPIFF?
Use NDR when you're specifically referring to net dollar retention. Use SPIFF when the topic is sales performance incentive fund.