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In the video, Alan Rigg explains the three options for providing salespeople with an income floor: salaries, recoverable draws, and non-recoverable draws. The goal is to offer a guaranteed minimum compensation to help salespeople cover their essential expenses while they build their pipelines. Rigg suggests that the income floor should be between 40% and 60% of the annual target income, enough to cover important expenses like rent and food, but not luxury items. The options for an income floor include salaries, recoverable draws, and non-recoverable draws.