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Comp Plan Basics

Draw Against Commission

A guaranteed advance paid against future commission, usually recoverable — common during ramp or a slow stretch.

A new AE gets a $3,000/mo recoverable draw for their first 90 days; each month's draw is subtracted from commission once deals start closing.

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More in Comp Plan Basics

  • OTE (On-Target Earnings)

    Total pay a rep earns at 100% quota attainment — base plus variable combined.

  • Base Salary

    The fixed portion of pay, guaranteed regardless of performance.

  • Variable Pay

    The performance-tied portion of pay, usually expressed as a commission rate against closed revenue or activity.