---
title: Draw (against commission) — what it means and why it matters | Allocate AI
description: An advance on future commission paid to a salesperson, often during a ramp period, that is later deducted from commissions actually earned.
canonical: https://allocateai.io/glossary/draw
site: Allocate AI — https://allocateai.io
---

# Draw (against commission)

An advance on future commission paid to a salesperson, often during a ramp period, that is later deducted from commissions actually earned.

A draw is money a company pays a salesperson before commissions have been earned, so there is something to live on while pipeline builds. It is most common in the first few months of a new role, when nothing has closed yet, and in roles with a small base salary.

There are two kinds and the difference matters. A recoverable draw is a loan: you receive $5,000 a month, and when commissions start arriving, the company keeps them until the draw has been paid back. If you leave before that happens, some plans require you to repay the balance in cash. A non-recoverable draw is a guaranteed minimum: you receive it, and if commissions fall short, you keep it anyway.

A numeric example: a $6,000 monthly recoverable draw for three months creates an $18,000 balance. If you then earn $10,000 in commission in month four, you receive $0 and the balance drops to $8,000. Month five earns $12,000; you receive $4,000 and the balance is cleared.

The common mistake is treating a recoverable draw as income. It is a bridge, and it comes with a repayment cliff that can make the first commission checks disappointing. Ask which kind you are getting, how long it lasts, and what happens to the balance if you leave.

[Try the Sales Comp Calculator →](https://allocateai.io/calculators/sales-comp)

## Related terms

- [Commission](https://allocateai.io/glossary/commission) — Pay earned as a percentage of what you sell, so the amount changes with each deal and each month rather than arriving as a fixed salary.
- [OTE (on-target earnings)](https://allocateai.io/glossary/ote) — The total a sales role pays if you hit exactly 100% of quota: base salary plus the commission you would earn at target.
- [Clawback](https://allocateai.io/glossary/clawback) — A contract term that requires you to repay money you already received, most often a sign-on bonus or relocation payment, if you leave too soon.

**Plan in plain language.**

Allocate answers “can I afford this?” from your own numbers, writes the plan, and stages every change for your yes. It starts from an estimate before you link a bank.

[Get started](https://app.allocateai.io/signup)

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Allocate AI is a budgeting and financial-planning app: link your accounts, say what you want in plain words, and it writes the plan and stages every change for your approval. Read more at https://allocateai.io or see all pages in https://allocateai.io/llms.txt.