Quick Reference

The money paid to a salesperson before the sale is actually completed. The draw is then applied towards the commissions earned from future sales. Draws are used for salespeople where income is based entirely upon a commission. Draws can be either recoverable or non-recoverable. Recoverable draws occur when the salesperson is required to reimburse the company if the commission targets are not met; non-recoverable draws cannot be recovered if the targets are not met. See also sales.

Subjects: Marketing.

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