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View Full Version : Anyone here paid on a draw with commission?



Rock-A-Bye-Baby
09-07-2006, 08:16 AM
Can you give me an idea of how it works for you? You dont have to divulge your income of course, just how the deal works. i have heard of recoverable draws and nonrecoverable draws (which sound more like a guarantee to me).

NautiTwins
09-07-2006, 08:20 AM
Can you give me an idea of how it works for you? You dont have to divulge your income of course, just how the deal works. i have heard of recoverable draws and nonrecoverable draws (which sound more like a guarantee to me).
Yep. What do you want to know.

lewiville
09-07-2006, 08:23 AM
a draw situation works off of a probational period. the employer will give you typically 90 days to get things off and going, to prove youself. after 90 days you start paying back what you had a draw on. for example, if you had a draw of $2500 per month at the end of 90 days you should be making enough commission to start to pay it back.If your commissioned based and it 20% on the total revinew and you have $10,000 per month of revinew thats $2,000 in commission. Be prepaird to have it taken away because of the draw. So you really end of making $0.
I had it happen to me once and it was never explained to me completely.
hope that helps.

Rock-A-Bye-Baby
09-07-2006, 08:29 AM
Yep. What do you want to know.
i want to know what variations are available. Like Lewiville just added above, is that the traditional plan or is yours different. if so, how?

UncleLarry
09-07-2006, 08:43 AM
There is no traditional plans....
I have been paid and have hired others using the following....
Non Recoverable Draw for 3 months (just enough to keep the sales person alive) A lot depends on what the person needs to sell is 3 months enough time to get up and running?
I then put the person on a 3 month 50% non recoverable...
At the start of the 9th month was just commission....
The amount of time can vary depending on what you are selling and how developed the territory is for the new sales person..

drejustice
09-07-2006, 09:12 AM
I use draw with some of our folks:
$$$$ are used only for example and to make explanation simple.
Say your monthly salary 5000.00 and you receive at 2000.00 per month draw and the above is paid semi-monthly
i.e. 1st of month 2500 salary and 1000 draw
15th of month 2500 salary and 1000 draw
Now you go out and earn commissions. If your commisions for the previous month is less than your draw amount(2000) your paid the draw. If your commisions earned is say 5000 for the month, when that is paid out your draw for that month is taken out and your check would be the 2500 plus 4000( 5k commission less 1k draw already paid out previous pay period and you don't get draw this paycheck cause your commission about is more than the 1k draw you'd normaly get this check.)
Non-recoverable means that even if you don't make enough commissions to cover draw for a time period, they won't go back and make take that OLD draw from any commissions you get once you do make enough.
Recoverable draw means they will continue to reduce your commissions actually paid to you against the balance of draw paided to you before you started earning actual commissions to be paid.
The reason Draw is used is so that you don't want someone to have $$ hardships for the timeframe they ramp up their sales up to the level they'll be earning $$ on their own. If someone continues to earn less Commissions dollars then they pull on draw over a extended period of time, you need to rethink if they are a fit for the job cause they aren't pulling their weight.
Hope this helps.
Hope that helps.