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WorkStride Blog

Incentive Promotion or Payout Method?

You are planning your next incentive promotion for your new product line. You say to yourself, “I want to run a lottery incentive promotion!” At this moment, you mean you want to reward your reps with a chance at winning a grand prize.

However, before you begin, there are some questions you need to consider. How will your reps earn a chance at the prize? What exact items are you selling? How much do your reps need to sell before they have a single chance at the lottery? What is the timeframe for eligibility? These are only some of the questions you need to ask yourself before creating your incentive promotion.

Components of an Incentive Promotion

Incentive promotions are made up of a bunch of different pieces. These will include:

  • eligible items
  • reward rules (such as X for Y)
  • timeframe and duration of the promotion
  • communication and engagement tactics
  • submission form
  • approval process
  • payout method
  • actual rewards (monetary or merchandise)
  • and more!

Saying you are looking to run a “lottery incentive program” addresses only one small part of the entire process. It is incredibly important to think about and outline every single bullet point listed above. Focusing on only one component (such as the payout method) will lead to an improperly designed program.

What is a Payout Method?

A payout method is simply the way you actually reward your reps. You might have a rather straightforward payout method, such as sending a check after the promotion is over. Or you might have a game in place, such as a lottery that allows you to pull a winner from a pool of eligible participants for a larger prize.

Another game-oriented payout method could be a Spin-the-Wheel type of game, where participants get “spins” as rewards for selling X amount of a product. Then, they can go and spin the wheel for a chance at the prize.

The payout method, in combination with the actual rewards, should be something that entices your participants, getting their attention and interest. It should drive your participants to sell more.

Some programs do not include gamification in their payout method. That’s okay! The important thing is that you outline all the various components of your incentive promotion. Only with a clearly defined program will you be successful!


Take your channel incentive program to the next level with a fully-configurable, SaaS-based incentives and loyalty platform from WorkStride. Let’s have a conversation!

About the Author

Katie Edwards is a Content Marketing Specialist at WorkStride, a company dramatically changing the world of employee recognition, sales incentives, engagement, and company culture. Katie has an English degree from the University of New Haven and enjoys reading sci-fi and fantasy novels in her spare time. LinkedIn