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Incentive is a management term that describes a measure to increase motivation. The customer, employee or business partner receives a special reward as an incentive for specific actions. The reward or remuneration is handed out on pre-defined terms. For instance, an insurance broker receives his incentive in the form of a premium after closing a contract. Incentives can, but do not have to be of monetary nature. They are especially frequently used for sales representatives or other occupations that require the closing of contracts. But incentives can also be other premiums, that are handed out for instance for the achievement or over-achievement of pre-defined goals.