Four things to consider in your draws plan before finalizing a sales job

Got a new sales job? Big thumbs up to you! It is time to research your all-available options, compared to a one-dice choice that gives you a high salary and a dreamy OTE. In a sales job, there comes a very important factor that one should consider in their draw plan.

As sales compensation plan is the focused area of every salesperson, fancy OTE can easily lure your attention and make you struggle with cash flow. So, read our article and note down all the below shared points to make a better decision before finalizing a sales job.

Incentive during the ramping term

Most sales firms offer a grace period or ramp period of two to three months where you get the incentive amount paid. It trains you about the products offered by the sales firm, and you get to learn about the company culture.

It is worth noting that there are different versions of draws for sales jobs. Some companies offer an 80% of guaranteed incentive on the first payment. If your company says that you’re on an incentive pay with no guarantees from day one, you should take it as a red flag. You’d want to stay away from them.

How often do you get your incentive amount paid?

If it mentions a quarterly paid salary with 60% of your pay being the incentive amount, you’d know that cash flow doesn’t look great. It means your company pays you 50% of your salary for the first three months.

You’d receive 150% OTE at the end of four months. As compensation means, sales-based firms should offer a draw against commissions.

It offers you 35% to 60% of your incentive amount per month.

If you fail to meet your targets for the quarter, the amount received in your draws should get deducted from future pay-outs.

Also, before getting your amount paid company should have recorded all your sales number in the commission tracker.

If you work as a junior representative in a start-up, we would advise you to ask for a commitment on sales draws. Else, your incentive amount will look a bit rough for your cash flow.

Do sales happen in definite seasons?

If Saas-based products get sold at the end of the year, sales representatives can’t sell them for the rest of the year. The same trend gets followed in a specific Saas vertical. The sales team gets busy during the holidays. But it remains a bit quiet for eight to nine months. If you’d get entitled to sell software to sports-based companies, you need to factor in seasonality. In such cases, you’d better go for a sales compensation plan that works on a recoverable draw.

What does the sales term dart?

Talk to the HR team about the fragment of incentive pay you get per month. Learn about the securities around commissions. It is more likely that you’d not get accurate information. It is advisable to look at Repuve or Glassdoor ratings. It talks a lot about how salespeople feel working at the firm.