Friday, July 8, 2011

What does "draw against the annual salary" mean?

I'm sure you will received a weekly or monthly "draw" against your $30,000. annual salary. If you draw $2,000. monthly and your sales reach a point where you earned $36,000 for the year the company will settle with you for an additional $12,000. Your draw and settlement will equal $36,000. The draw is in your favor as no doubt you are working on a commission basis and without the draw you would have little income in the first months or until you build up a sales volume.

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