YesitsmetheTopG

Draw commission

can anyone with experience with a draw based commission structure potentially break it down for me a litttle? im going for a enterprise AE position that has a draw commission structer with an OTE of 180k. my question is how does it fully work? if I miss my numbers do I owe the money back?

it's my first time looking into this as im used to a get paid what you hunt and kill sales commission.

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CuriousFox

WR Officer

🦊

You need to ask for the specifics before we can help.

YesitsmetheTopG

Contributor

What’s the difference in the two? The way they explained to me sounded basically like it’s a guaranteed commission check w/ also the base salary that I’m selling against it seems like. I just don’t understand fully because I haven’t dealt with it before didn’t know that was a question I needed to ask at the time.

braintank

Politicker

Enterprise Account Executive

One (non-recoverable) you get to keep. The other (recoverable) you have to give back if you don't earn it back.

Sunbunny31

Politicker

Sr Sales Executive 🐰

^^ you need to ask if it is non-recoverable.

braintank

Politicker

Enterprise Account Executive

is it a recoverable or non-recoverable draw?

YesitsmetheTopG

Contributor

I’m not sure I was just told it was draw based by recruiter

Kosta_Konfucius

Politicker

Sales Rep

Got to get a complete breakdown of how it works

TennisandSales

Politicker

Head Of Sales

This is a huge detail haha

antiASKHOLE

Tycoon

Bravado's Resident Asshole

If one of my clients doesn't pay and results in a collections or 3 months past due, I get docked the % of my book back the next commission pay out.

jefe

Arsonist

🍁

TBH draw has always confused me as well.

Get the details - especially recoverable or non-

bassinshaps

Politicker

Territory Sales Manager

Draw commissions are great for your first year while you’re building a lead funnel.

I’ve been on both recoverable and non-recoverable.

Best I can explain non-recoverable is that you’re set to make that amount, so you won’t thrive one month and starve the next. Depending on if they rack the draw monthly or not.

Downside to that is that if you have a bad month and break the draw the next month, they’ll deduct what you owe from the month/months before from what you made on your really good month. It sucks when that happens.

Non recoverable is great but you’re stuck with the same paycheck over and over until you break the draw. After you break the draw, you end up with some big ole paychecks.

YesitsmetheTopG

Contributor

Perfect, thanks for taking the time to comment this. This was very helpful!

TennisandSales

Politicker

Head Of Sales

Draw commissions are terrible IMO.

playerone

Politicker

Regional Account Executive

I haven’t heard “draw” in a long ass time. It’s basically a greater of the two. You’re guaranteed to make at least X, but you should be making commission. Rule always was that if you’re still pulling draw 90 days in you’re out.

LordOfWar

Tycoon

Blow it up

I don't like a draw plan at all. Your salary should be enough to survive (but not thrive) while you build a pipeline.

You should be hungry in a new role so you completely overstack ops and then start pulling in large cheques. Then the key is to not rest on your wins to keep them rolling in over the next quarters/years.

newguy2022

Valued Contributor

Sales Development Representative

I work in Automotive Sales and we're on draw commission, so my "base salary" is $2k a month, however, say I sell $5k in commission, come time that the commissions get paid I have to pay back $2k out of my commissions so I'm taking home $3k. I'm not sure if it's structured the same in different industries, but that's how it is where I'm at. Either way, I bring home $5k a month because I get the $2k a month anyhow, but yeah. It sucks pretty bad.

thedue

Valued Contributor

VP of Sales

the draw is like borrowing commish, which are returned once you close something.... the objective is to help carry you over.

if you are just starting, you could suggest an MBO (management by objective) based bonus.

It's different in that I recognize you won't likely have a pipe and be closing in the first few months, but, based on measurable and objective stage gates, like pipe gen, meetings, POVs and homework created and presented, tools leveraged, modules download, coffees drank, days in office.... whatever...

MBOs are like a draw, helping you to build pipe, but you don't pay them back once you get firing!

kelvin26

Fire Starter

administrative manager

https://timebrookinvestment.com/u/sign_up?r=kryptotitan

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