A most common question we get from our customers at EasyComp: Should I offer a draw to new sales reps?
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 🚀
