Extrinsic incentives are external rewards that motivate individuals to perform specific tasks or behaviors. These rewards can include money, prizes, recognition, or other tangible benefits. For example, a bonus given to employees for meeting sales targets serves as an extrinsic incentive to boost productivity. These incentives are often used in various settings, such as workplaces, schools, and sports. While they can effectively encourage desired behaviors, relying solely on extrinsic incentives may not foster long-term motivation or satisfaction. Balancing extrinsic rewards with intrinsic motivation, which comes from within, can lead to more sustainable engagement and performance.