Draw

Indholdsfortegnelse
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In many commission models one works with the concept of draw. In Danish, it can best be described as an advance on commission that a seller gets paid before the actual results are created. This gives the employee some financial security, especially during periods when the pipeline is under construction or when new hires are still in the process of hitting their initial sales targets.

A draw can be guaranteed, which means that the amount will not have to be paid back even if the seller's results do not reach the expected level. In other models, the draw is offset, which means that future commission is reduced until the advance is paid.

For the company, draw is a flexible tool to attract and retain talent because it provides financial stability in an otherwise variable payroll system. For the employee, the draw acts as a safety net that allows to focus on generating sales without the fear that the salary fluctuates violently from month to month.

In short, draw is a balance between security and incentive. It is a temporary advance that makes the commission system more stable and fair, both for new salespeople and for companies that want a motivated sales force.