What is Draw?
Draw is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
A draw is guaranteed pay advanced to a salesperson against their future commissions, ensuring income during ramp or slow periods. A recoverable draw is repaid from later commissions; a non-recoverable draw is not. Draws help new reps survive the ramp before their pipeline produces steady commission income.
Key takeaways
- Advance pay against future commissions.
- Recoverable draws are repaid from later commissions.
- Non-recoverable draws are effectively a guarantee.
- Common during a new rep's ramp period.
Why it matters
New reps have no pipeline yet but still need income. A draw bridges the ramp so a company can hire good people who would otherwise not survive months without commission.
How Ardovo handles it
Ardovo's attainment and commission tracking makes it clear how much a rep has earned against a draw, so both sides can see when commissions have caught up to or exceeded the advanced amount.
Frequently asked questions
What is the difference between a recoverable and non-recoverable draw?
A recoverable draw must be paid back from future commissions once the rep earns them. A non-recoverable draw is kept regardless, functioning as a minimum guarantee. Recoverable draws are more common.
Who receives a draw?
Usually new hires during ramp, reps entering a new territory, or teams in a slow season, to provide income stability before commissions build. It reduces the risk of joining a commission-heavy role.