Intrinsic vs. Extrinsic Rewards: Which are Better?

This article is going to tell you everything you need to know about intrinsic and extrinsic rewards – including what they are and examples of each.

Warning, there will be a few examples from The Lord of the Rings for no reason.

I will also discuss which are better, intrinsic or extrinsic rewards. And how to use them to have more success and happiness in life.

Intrinsic and Extrinsic Rewards Defined

What Does Intrinsic Mean?

First, let’s look at what the word “intrinsic” means.

According to Cambridge Dictionary, intrinsic is defined as “being an extremely important and basic characteristic of a person or thing.”

That is, something that comes from within a person.

What Does Extrinsic Mean?

Now, let’s take a look at how the Cambridge Dictionary defines extrinsic: “coming from outside a particular person or thing.”

That is, very straightforwardly, something that comes from outside a person.

What Does Reward Mean?

The definition of reward according to the Cambridge Dictionary is: “an advantage, for example more money or a better job, that someone receives if they are successful, work hard, etc.”

That is, benefits you receive in return for the work you do.

What’s interesting about this definition is it is entirely outward focused.

I looked through a bunch of dictionaries and many definitions frame things this way. Which is interesting, and something we will come back to later.

Putting it All Together

• Intrinsic rewards are benefits you receive in return for the work you do which come from within
• Extrinsic rewards are benefits you receive in return for the work you do which come from the outside

Examples

Here are some examples of intrinsic rewards:

• Internal sense of satisfaction
• The joy of learning
• Creative expression
• Relief from overcoming a challenge
• Finding humor in something
• Sense of connection to other people/the world
• Fulfilling a purpose
• Increased confidence
• Positive feeling from helping others

And as promised, an example from The Lord of the Rings: Sam’s peace of mind knowing he was being a loyal friend to Frodo, even when Frodo was upset with him.

Here are some examples of extrinsic rewards:

• Money
• Fame
• Prizes
• Status
• Recognition from others
• Vacations

Example from The Lord of the Rings: Sauron acquiring the One Ring

I’m seriously contemplating doing an entire article on Lord of the Rings examples.

The Gray Area

While the examples provided above are clear-cut, there are some things which are in the gray area between intrinsic and extrinsic.

In fact, for many activities, there is a full range of potential rewards, from external to internal-focused.

Let’s take exercise as an example. There are a variety of reasons you may work out:

• Pure extrinsic: To make people more attracted to you physically
• Leaning extrinsic: Improve confidence so you can appear more attractive (improved confidence is more intrinsic, but the end goal is to appear more attractive which is more extrinsic)
• Leaning intrinsic: Sense of accomplishment in seeing results (it’s mostly intrinsic in that you are exercising for internal satisfaction, but that internal satisfaction is tied to external results you are seeing)
• Pure intrinsic: Enjoying the act of working out itself

Side note – If you are interested in more on exercise, check out my article on how to stick to a workout schedule.

Which is Better

We are going to use two criteria to judge which is better:

1. Success: Which will make you more successful
2. Happiness: Which will make you happier

First, let’s look at the pros and cons of each.

Extrinsic Reward Pros

• It is fundamentally necessary to seek out external rewards to some extent for a basic level of comfort/survival
• Can be a great initial spark if you don’t have any intrinsic motivation to begin with
• May provide some short-term happiness (e.g., getting a bonus)
• Can sometimes lead to long-term happiness, but generally only if it leads to intrinsic rewards (e.g., getting a house is extrinsic, but it might make it easier for you to start a family which leads to benefits which are intrinsic)

Extrinsic Reward Cons

• Are often fleeting (e.g., consuming food/entertainment)
• Are outside of your control (e.g., that person you were trying to impress can move away or not be impressed with you despite your efforts)
• Sometimes don’t lead to as much happiness as you expect initially

Intrinsic Reward Pros

• Are more in your control
• Usually last for longer periods of time
• Reduce procrastination (since you are less likely to procrastinate something when you like doing it)
• Lead to better moment-to-moment happiness
• Make it more likely you will follow through with your goals (because you enjoy the process of doing something, not just the result)
• Are more likely to lead to long-term happiness and fulfillment

Intrinsic Reward Cons

• Can be tough to acquire if you have a goal which involves doing something you initially don’t like
• Society focuses more on external things, so it can be difficult to turn your attention inward

The Winner

As you can see, there are pros and cons of each, so there is no one clear-cut answer.

Both intrinsic and extrinsic rewards are helpful – in different situations.

EXTRINSIC rewards are needed by everyone, at least to some extent, just for basic survival.

Additionally, they can help position you to eventually enjoy intrinsic rewards.

For example, earning enough money to retire gives you the freedom to focus on more intrinsic pursuits.

INTRINSIC rewards, on the other hand, are more likely to bring you happiness in the present moment.

Furthermore, when you have intrinsic rewards it’s easier to stick with your goals because you appreciate the process.

And aren’t just going through the motions.

While both intrinsic and extrinsic rewards have their uses, I did promise a winner. If I was forced to choose one, I would lean slightly towards…[drumroll]

Intrinsic rewards.

Why?

I’ve found that when you pursue intrinsic rewards you usually are more likely to stick with your goals and find fulfillment in what you are doing.

But It’s Not All or Nothing

Of course, in real life you aren’t forced to choose just one type of reward. You can have multiple rewards for things you do.

They aren’t mutually exclusive.

For example, you might do a job because you love it, but also do it for the money.

But I’ve usually found that when you focus ONLY on extrinsic rewards, self-discipline gets harder and happiness is more fleeting.

How to Focus More on Intrinsic Rewards

In many cases, people are focused more on extrinsic rewards than intrinsic ones.

Why is that?

Society Teaches Us to Focus on Extrinsic Rewards

Society focuses almost entirely on extrinsic rewards. (Which is why even the definition of “reward” which I mentioned earlier is outward-focused.)

As kids, we learn to do things to impress others instead of ourselves.

Doing chores to impress our parents. Getting good grades to impress our teachers. Winning games to impress our friends. And so on.

The problem is, what happens when our parents, teachers, and friends aren’t there to motivate us to do whatever it is we want to accomplish?

One answer is to make sure you are, at least in part, focusing on intrinsic rewards as well.

How to Shift Your Focus More Towards Intrinsic Rewards

Here are a few strategies I have used to shift from an extrinsic to intrinsic reward mindset.

And again, keep in mind it’s totally fine to care about BOTH intrinsic and extrinsic rewards.

These are just strategies for how to start incorporating RELATIVELY more intrinsic reward focus into your goals.

Method 1: Think About Extrinsic rewards During Decision-Making Only

If you recall, one of the pros of extrinsic rewards is to help inform the decision-making process.

Let’s say you need to decide where to attend college.

You need to think about the external benefits of the college, at least to some degree, to help inform your decision.

It would be great to do it 100% for the love of learning, but in the real world you need to consider things like tuition, location, and ranking.

So, it makes complete sense to factor in these extrinsic rewards into your decision.

BUT once that decision is made, the value of thinking about those extrinsic rewards moment-to-moment, starts diminishing.

After you decide what college to go to, you have two options:

1. Keep thinking about those external benefits every day. Doing everything just to get your degree.
2. Find a subject you are passionate about and learn for more intrinsic reasons. For example, finding interest in the material, learning new skills, or discovering philosophies you had never encountered.

Don’t get me wrong, at the end of the day some of those external rewards do make a difference.

But you are going to be much happier and more successful if you practice focusing on intrinsic rewards more often.

Method 2: Trick Yourself Into Liking It

This is a favorite tactic of mine.

You probably aren’t going to be very motivated to do something you hate. Even if it is for a big extrinsic reward.

But what if there was a way to convince yourself to like it? To trick yourself into finding something intrinsic you enjoy about that thing?

The key to tricking yourself into liking something is to find an angle which makes it fun.

Even if you hate something at first, you usually can find one small morsel to like if you look hard enough.

Whenever there is something you aren’t intrinsically motivated to do, ask yourself how you can make it enjoyable.

Here are a few ideas for how to make things fun which aren’t always seen positively:

• Dieting: View it as an opportunity to try new types of foods. Perhaps even learn how to cook.
• Doing a mundane task at a job: Make it a game. How much can you get done in an hour? Can you beat your record and get even more done next time?
• Cleaning: Enjoy the feeling of getting things organized and polished. There is something appealing about a spotless room or place.

If you look for these kinds of outside the box angles, you may discover ways to make things intrinsically rewarding – even if you don’t like them at first.

Method 3: Focus on the Process

If you focus on the process and not just the outcome, it will become FAR easier to discover things you find intrinsically rewarding.

I have written extensively about how to focus on the process here. You can also check out the video below.

Or if you want to go EVEN deeper you can get an in-depth, PDF guide on how to focus on the process if you sign up for my newsletter. The newsletter focuses on how to build self-discipline.

Click here to get the guide!

Conclusion

There is nothing wrong with extrinsic rewards. They have their place.

Such as providing an initial spark, helping with decision-making, and some short-term happiness.

But intrinsic rewards are often overlooked, and they can be extremely beneficial.

PS: Focusing on intrinsic rewards is a great way to develop self-discipline. Here are a collection of my best article on how to build self-discipline.