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Posted: Sat May 24, 2025 8:50 am
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example
let’s say a company offers a recoverable draw of $2,000 per month for the first six months of every new rep’s tenure. A sales rep makes $1,000 in commission in january, so they “borrow” an additional $1,000 draw amount. That’s money they now owe to the company once they’re eventually making more afghanistan phone number list than $2,000 in commission per month.
The next month, they make $1,300 in commission, so they receive a draw amount of $700 to hit the $2,000 threshold for february. Now they owe the company a total of $1,700.
In march, that sales rep has gotten up to speed and they earn $2,200 in commission. So, they pay back the commission they’ve earned past the draw amount – in this case, $200, which brings their total debt down to $1,500. Eventually, as they continue earning more than $2,000 per month in commission, they’ll pay off the total debt they accrued during the months they were ramping up.
By registering, you confirm that you agree to the processing of your personal data by salesforce as statement.
Sign up now
example
let’s say a company offers a recoverable draw of $2,000 per month for the first six months of every new rep’s tenure. A sales rep makes $1,000 in commission in january, so they “borrow” an additional $1,000 draw amount. That’s money they now owe to the company once they’re eventually making more afghanistan phone number list than $2,000 in commission per month.
The next month, they make $1,300 in commission, so they receive a draw amount of $700 to hit the $2,000 threshold for february. Now they owe the company a total of $1,700.
In march, that sales rep has gotten up to speed and they earn $2,200 in commission. So, they pay back the commission they’ve earned past the draw amount – in this case, $200, which brings their total debt down to $1,500. Eventually, as they continue earning more than $2,000 per month in commission, they’ll pay off the total debt they accrued during the months they were ramping up.