what does draw mean in sales career?

Question

whats a good example of draw?

Answer 1

Money you are given against future sales and has to be paid back if you don't make enough sales to cover it.

Answer 2

It means that the company gives you a monthly stipend against your sales. When you start making commission your draw is subtracted.

An example would be if you have a 4K/month draw. You start making 5K month in commission. You will get a check for your 4K draw and your commission check would only be 1K since your draw is subtracted.

Make sure it is a non refundable draw. If it is refundable then they could ask for the money back when you leave the company if your sales do not cover the draw. Get EVERYTHING in writing!

Answer 3

A draw is typically and advance on commissions to be earned. e.g a sales rep is paid $500.00 per week draw. If he earns $700.00 for the week, he will be paid the additional $200.00 If his commiissions total less than $500.00 he owes his employer the difference until such time that he catches up, if he does.

Answer 4

a draw is a advance on your commission
if you get paid 2 draws of 1000 dollars per month and earn 5000 dollars of commission in a month then they would subtract your 2000 draw from your 5000 commission and pay you 3000