A commission draw allows sales reps to receive a regular pay-check based on their future commissions. The amount of the payroll draw, and the pay period or sales period are usually pre-determined at the onset of the employees contract. The employee’s commission at the end of the agreed-upon period then goes toward paying back the draw.
When the draw from that pay period is paid off, then usually the employee keeps their remaining commission. The draw against commission is a way of providing a steady income for the sales rep until scheduled commission checks are received.
With Commissionly draws are automatically calculated. The final commission amount is displayed, and the remaining draw sent out in a report each month.