What Is Draw?

The short answer

A draw is an advance of future commission paid out on a schedule — a guaranteed paycheck while you wait for your sales to close. It is recoupable (repaid out of future commission) or non-recoverable (free).

A draw, short for draw against commission, is an advance of future commission paid out on a set schedule. Instead of earning nothing until a deal closes, a rep on a draw gets a guaranteed check every pay period, and that advance is later settled against the commission they actually earn. There are two kinds. A recoupable (recoverable) draw is a loan: the company claws the advance back out of your future commission, so if you close nothing, you end up owing. A non-recoverable draw is a minimum guarantee — you keep the money and it never comes back.

In plain English

A draw is a steady paycheck while your sales catch up. New roles almost always pair one with a ramp period, because nobody closes real commission in the first month. The question that matters is not whether there is a draw — it is whether it is recoupable. A non-recoverable draw is a floor; a recoupable one is a loan you did not know you took.

Why it matters to you

A draw changes the risk of your first year. With a non-recoverable draw your comp has a real floor while you build pipeline; with a recoupable draw your OTE can quietly shrink the moment a quarter goes quiet. When you get an offer, put the word "recoupable" in writing and model what happens if you hit only half of quota for two quarters. That number tells you the actual risk of the job better than the headline OTE does.

Where it's taught