Juancallclose

Director

Recoverable draw

My company has a recoverable draw. From y'alls experience how enforceable is it and what's the likelihood they actually come after it? I've heard varying tales but the most common one is they will come after it, but if you lawyer up, they will give up.

And yes, it's dumb to sign with a company that has a recoverable draw. That should be the first sign of trouble

💰 Compensation

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FattySnacks

Politicker

Senior Account Executive

I’m not understanding the issue. You signed an offer letter stating you have a recoverable draw. If you wanted something else you should’ve not signed/ asked for something else.

Good luck fighting that legally. You’ll be fired in a heartbeat.

Juancallclose

Catalyst

Director

I'm not even sure I'm going to leave but have had a few colleagues say adios. Just wondering what everyone here has seen. Limited intel I've gathered is "we're keeping your last check and vaca pay."

RealPatrickBateman

Politicker

🔪Amateur Butcher🔪

When I was slangin' copiers in another lifetime, the recoverable draw was only "recovered" for reps that left before a year, or reps they absolutely hated. I also saw the company pull back portions of the draw but keep people on if reps didn't hit their 1st year quota.

In this day and age, if a company is using a recoverable draw, walk the fuck away, I don't care how good the window dressing is. Plenty of companies willing to pay a living salary and solid comp.

Sunbunny31

Politicker

Sr Sales Executive 🐰

My previous company offered recoverable draw at the beginning of each FY. The idea is that it helps "bridge the gap" while ramping up for what inevitably was a whole new territory or GTM or product/solution. It was an insulting pittance, but darned straight they clawed it right out of that first deal you sold if you elected to take the draw. Most knowledgeable reps would decline the draw (1) insulting amount as above and 2) who wants to start the year in the hole?).

Yes, of course they are going to come after you for it, it was a signed contract and they aren't just going to say, screw it, never mind. Are you asking because you are planning to leave the company before you've earned the draw back?

NotCreativeEnough

Big Shot

Professional Day Ruiner

nothing wrong with a recoverable draw as long as you can perform.

I've never been at a company that won't come after you for that money if you don't. But usually they'll let you go before it racks up too high and as part of letting you go they'll "Forgive" it

CuriousFox

WR Officer

🦊

Decline it man. Don't be tempted.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

You signed it, they can enforce it.

jefe

Arsonist

🍁

What's the point of a draw if it's recoverable?

And why'd you sign!?

Gasty

Notable Contributor

War Room Community Manager

run forrest, run

10XQLA

Politicker

Medical Sales Assassin

I've been in sales 20+ years never happened once, they just write it off on taxes.....

Oldskool

Personal Narrative

Senior AE

People are still doing this? This is a farcical tactic from the medieval era mostly employed by cheap owners running nickel and dime businesses.

Any idiot knows that marketing and quality of product or service have as much to do with making sales as sales rep performance.

A slightly smarter person knows that if there is a track record of sales consistency already, and a sales rep is not tracking to perform at that level after 30 or 60 days (depending on ramp up and sales cycle), they need to be shown the door.

Finally, the cost and effort to go after some shitty base draw legally makes it unlikely.

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Juancallclose

Recoverable draw

11 comments

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