You still on a "draw"?

Wanted to throw this out to the group... are the sales people out there still on a "draw"?

I get we are sales people and we all have had the quota talks... but in my surrounding area I have heard quite a few places offering all salary, ditching the draw!

Anyone else have experience with this?

💰 Compensation
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2
DwightsEgo
Politicker
1
BDR Manager
When you refer to a draw, do you mean owing what you didnt bill next month? 

Ex: Need to book $25K in March and you only booked $20K, therefore needing $30K in April? 

Have a buddy in Portland ME- the company decided to do away from commission and raise base salaries (they are a french company). We will see how that rocks...
ZachJiru
1
Division Director
Thanks Dwight! Yes that's exactly what I was referring to. 
It seems like such an old way of doing sales in general. 
We have had quite a few places here in California - doing away from that "draw" or "covering your seat" amount month to month. 
Quite a few places raising base salaries - I will be curious to see how that affects turn over... will more people to coasting since they're all salary?
DwightsEgo
Politicker
0
BDR Manager
In theory I understand it, but what I highlight is what you said at the end....will people coast? 

I get confused on the incentive. Sure, I get it- hire the right people to do the job, with sound skills and the right motivation. Sellers should be motivated by money?

Would the seller push for an additional use case, or deeper quantification knowing that they will ultimately be paid the same?

Maybe a end of year bonus based on bookings? A lot of avenues to go down I guess 
ZachJiru
1
Division Director
If you're hiring people that would coast, you're hiring the wrong people haha 
But how do you keep those motivated to meet a quota during a pandemic?! Hard for people to expect the same results during all this... at least in my industry. 
I like the idea and i would work for... all salary + end of year commission - YoY sales growth or whatever KPI's you have in the role! 
CaneWolf
Politicker
0
Call me what you want, just sign the damn contract
Glad @DwightsEgo clarified because I did not know this term. My gigs were all ultimately responsible for quota but the impact on comp varied. One you couldn't hit accelerators unless you were on pace for the year, another it didn't matter, one had the stupidest fucking comp plan I had ever seen, you get the idea.
HarryCaray
Notable Contributor
1
HMFIC
Haven’t seen it. Feel like that could start to snowball fast. Talk about piling on stress...
ZachJiru
2
Division Director
Thanks! The sense around here is that some places are removing that in order to take some talent... if you dont have the stress of actually making the sale, but instead, a guaranteed salary... why not work somewhere else. We have lost some talented people, but these other places really just "bought" the talent, it doesn't seem sustainable long term. 
HarryCaray
Notable Contributor
0
HMFIC
Agreed.  Not sustainable.  
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