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What is a non-recoverable draw?
A non-recoverable draw is a guaranteed minimum payment – separate from base salary and commission they earn – that a sales rep receives in a specific pay period. They do not need to pay this back to the organization. Many sales commission plans include non-recoverable draws as part of their variable compensation offerings.
If a sales representative makes less in commission than the afghanistan phone number list draw amount, they will be paid the difference. That amount will not be held against the rep as debt in future pay periods. If the rep earns more than the non-recoverable draw amount, the draw does not apply to them and the rep will simply be paid the full commission amount they earned.
Here’s a quick example: Let’s say a sales rep’s plan includes a $2,500 per month non-recoverable draw. In January, they earn $500 in commission. They would receive a draw amount of $2,000 to meet that minimum $2,500 threshold. (A more in-depth example is included below.