Sales commission vs draw

In most cases you would owe the draw back to the company.

I have seen it a couple places that they never went after people for the draw if they left on good terms however.

In the sales management positions I've held, we never went after former employees for their draw. A good sales manager will be minimizing the companies exposure while maximizing the sales persons earning potential.

Ideally the sales person will be "banking" enough commission to pay their own draw.

scott

We have a draw system @ my company.  Usually the overage paid to the company is charged against any bonus that is due you.  But we haven't seen anyone go after a past employee....

I worked on draw vs. commission for 3 years.  My productivity was high enough that I only went on draw once.  It's a hard pit to crawl out from when you get stuck though.  Is this a retail job?  You should be able to calculate out how much a week you need to sell in order to make above draw.  You don't owe the company anything unless you don't sell enough and are always making draw- because then the next week you have to sell double the normal amount to pay back the draw from the week before.

Commission makes associates more productive.  It's a self correcting problem for a non-motivated sales force.

Uncle Sam says you MUST be payed a min wage so no, if you leave the company they can't go after you for that money.

Edited by k_watzek 2010-01-26 9:39 PM

Its not a retail sales job, its capital equipment. My biggest issue is the change in structure, I am being forced to take a 25% reduction in base pay, my living expenses didn't change but now I have to budget for that reduction. I work in a different city than my family lives so I am in effect supporting two households.

I have a few things working so we will see.

Thanks for the replys

What is a draw?  Sounds like you paying a company to work for them until you met some minimum sales point in which you can finally make any money. IS that about right?

In my case I have a base salary of X, now I am going to a base salary of X-25%=Y So the difference in base (x) and (Y) is (Z). That difference is being paid to me as a draw against future sales.

If I leave the company the verbal but not written statement is I would have to pay that back.

however I received a new job offer that is more base (than the original base of X), allows me to work at home vs 2 hours away, and gives me a company car. So I don't think this will be an issue.