Glossary
Commission draw
Commission draws pay sales reps a guaranteed minimum base "salary" plus the opportunity to earn commission.
Commission draws (also called draws against commission or revenue/profit floors) pay sales reps a guaranteed minimum base "salary" plus the opportunity to earn commission.
This is different from a salary + commission format since rep's total commission must exceed their draw in order to bring home commission in addition to their draw (base).
Commission percentages can be higher with draws since there’s no added expense of a base salary; reps “pay for their own seat” before they bring home additional commissions.
Draws are great for companies that provide reps with a book of established business or similar nearly-guaranteed business.
This is different from a salary + commission format since rep's total commission must exceed their draw in order to bring home commission in addition to their draw (base).
Commission percentages can be higher with draws since there’s no added expense of a base salary; reps “pay for their own seat” before they bring home additional commissions.
Draws are great for companies that provide reps with a book of established business or similar nearly-guaranteed business.