Draws Decoded: How to Get Them Right (Without Losing Your Shirt)

Here’s the short answer:

Draws can help you land (and keep) great reps by giving them income security while they ramp. But not all draws are created equal.

🎓 So, what’s a draw anyway?

A draw is a guaranteed payment that bridges the gap while new reps build their pipeline and get productive. It’s especially useful when commission makes up a big chunk of their pay.

✨ The 3 most common types:

1- Signing Bonus (No-Strings Draw) Fixed monthly payment for a few months — no strings attached.

✓ Great for upfront security. ⚠️ Risk: No accountability if you’re not tracking activity.

2- Recoverable Draw A guaranteed monthly floor — recovered from future commissions.

✓ Reduces company risk. ⚠️ Risk: Some reps delay closing deals to “beat the system.”

3- Milestone-Based Draw (My favorite) Reps unlock draw payments by hitting milestones (pipeline targets, first deal, etc).

✓ Ties security to performance. ⚠️ Needs clear goals & good tracking.

📊 How much should you pay?

If you have historical data, use it! If not, here’s a quick rule of thumb:

• Enterprise AEs: Half productivity for 6 months
• Mid-Market AEs: Half productivity for 3 months

Start there and adjust as you go.

🤔 Should you just bump commission rates while they are ramping  instead?

You can. Some teams offer higher commission rates during ramp. But beware the bluebird deal — a huge early deal at a higher rate can cost you big. A well-structured draw (especially milestone-based) usually gives you more control.

✨ The Bottom Line

Draws help you hire better reps and set them up for success — without losing sleep (or cash). If you’re not sure where to start, milestone-based draws are a smart, flexible option.

Want to see what your comp plan should look like? Try our free tool here: EasyComp Plan Recommendations 🚀

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