Non-Recoverable DrawA non-recoverable draw, often called a non-recoverable draw against commission, is a common element of sales commission plans.
What is a recoverable draw?
There are two different types of sales commission draws– recoverable and non-recoverable. A recoverable draw against commission is money paid to a sales rep paid from the future commission they earn.
A recoverable draw offers financial support to new or first-time sales reps while they build out their pipeline and get up to speed in their role. By providing advancements on commission, the company helps to ensure that reps are able to cover their basic living expenses while still focusing on growing their business.