Can a sales representative keep a draw forever?
It is understood that the draw is for the sales person to keep forever and ever. Other arrangements are more complex and provide for the sales representative to maintain a certain level of sales, usually monthly.
Can a sales representative draw against a commission?
Sales representatives for technology-related equipment and systems, pharmaceuticals, heavy machinery, or farm equipment — even newly minted stockbrokers — may be offered a draw against commission.
Can a sales person return the money from a draw?
The Kentucky Federal Court ruled that a draw in which the sales person must potentially return the money back to the company is not called compensation as per the professional capacity exception. Thus, it rejected the company’s argument that the sales person was not covered under the F.L.S.A.
How long does it take for sales rep to gain full productivity?
Studies show the average sales rep takes about 9.1 months to gain full productivity, so having a draw allowance can provide some assurance during this time. On the downside, the commission draw model can be complex to execute, and it’s complicated for sales reps to track and predict their earnings.
It is understood that the draw is for the sales person to keep forever and ever. Other arrangements are more complex and provide for the sales representative to maintain a certain level of sales, usually monthly.
Sales representatives for technology-related equipment and systems, pharmaceuticals, heavy machinery, or farm equipment — even newly minted stockbrokers — may be offered a draw against commission.
The Kentucky Federal Court ruled that a draw in which the sales person must potentially return the money back to the company is not called compensation as per the professional capacity exception. Thus, it rejected the company’s argument that the sales person was not covered under the F.L.S.A.
Do you have to pay back a draw?
The parties will then negotiate different commission percentages for sales made against the draw. In this arrangement there is no concern that the salesperson will ever be expected to pay back any of the monies earned as a draw. It is understood that the draw is for the sales person to keep forever and ever.