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Alan Rigg from salescompensationstore.com discusses three options for providing salespeople with an income floor: salaries, recoverable draws, and non-recoverable draws. The purpose is to guarantee a minimum amount of compensation to help salespeople cover essential expenses while building their pipelines. Rigg suggests the income floor should be between 40% and 60% of the annual target income. Salaries cover basic expenses, while commissions fund additional expenses.
