Draw
An advance against future commission, used to provide income stability during ramp or seasonal variation.
Recoverable and non-recoverable
A recoverable draw is a loan repaid from future commission; a non-recoverable draw is guaranteed income. The distinction is material to both the seller's risk and the company's cost, and confusing the two in an offer letter creates a dispute later.
Recoverable draws can trap
RELATED TERMS
Ramp Quota
A reduced quota applied during a new seller's ramp period, stepping up to full quota as productivity is expected to arrive.
On-Target Earnings (OTE)
Total expected compensation when a seller hits quota exactly: base salary plus target variable.
Compensation Plan
The document defining how a seller earns variable pay: what is measured, at what rates, with what accelerators, caps and clawbacks.
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