what is Draw/Commission pay?

Answer 1

A draw is an advance on future commissions earned. If you are a commission sales person, you may be allowed to "draw" pay at a pre-set rate per week that is charged against future commissions. This varies from industry to industry. In some, the "draw" must be reconciled in the same month it was taken. In others, it can be at some future date.

Make sure you understand the reconciliation of your draw before agreeing to work for it. If you have questions, talk to your boss. Keep asking questions until you understand.

Answer 2

A draw is usually a guaranteed amount of pay that is given to people starting in the sales business. A commission is a percentage of the sales price that is paid to the salesperson. Usually a draw is given for a set period of time...maybe a year...as the salesperson works to build up his list of clients. If the salesperson generates enough commission to exceed the amount of his draw, the difference can go to making up the amount of draw already paid out... once the salesperson reaches his commission goals, the draw will be no longer in place.. and the salesperson will rely solely on commission.
basically, the draw is just a minimum guarantee of a certain amount of income. this would probably be different depending on who you work for, and in what capacity....but should be explained in detail when you are interviewing for a job.

Answer 3

A draw is a living wage paid to you each pay period regardless of your performance. However, when you earn commission what ever has been paid to you in a draw will be deducted.

An example would be you are getting a 36k draw per year, meaning 3k per month.

If your commission in your first month is 6k, you'll earn 6k altogether not 9k. If you don't get any commission your first month you will then get your draw of 3k. And in your second month if you are to get say 6k in commission you will only see 3k of it since the company paid you the month before and you didn't earn anything.

Most companies give you a grace period when you first start. But I wouldn't recommend going to work for a company like that.

Answer 4

For a private loan organisation you may get a draw in keeping with those consumers you time-honored. even in spite of the shown fact that, there is in all probability a minimum of time for this. examine your workers record that mentioned which you will now be engaged on a value foundation.