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hi this is Alan Rigg from sales compensation store calm in previous videos I explained why I dont recommend 100% Commission sales compensation plans in this video Im going to discuss three options for providing salespeople with an income floor those three options are salaries recoverable draws and non recoverable draws now the whole concept behind providing an income floor is to pay some guaranteed minimum amount of compensation and the idea is to help salespeople pay their bills while theyre building their pipelines so what percentage of target income should be the floor I typically suggest that for salespeople it should be between 40% and 60% of the annual target income this is enough money for them to pay many of their most important expenses such as mortgages or rent a car payment putting food on the table but it doesnt really pay for the fun things in life those should come from commissions now as we look at the options for paying an income floor the one were all probably mo
