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In this video, Alan Rigg discusses three options for providing salespeople with an income floor: salaries, recoverable draws, and non-recoverable draws. The purpose of an income floor is to guarantee a minimum amount of compensation to help salespeople cover essential expenses while they build their pipelines. Rigg suggests that the income floor should be between 40% and 60% of the annual target income, allowing for enough to cover necessary expenses like mortgages, car payments, and groceries, while leaving commission earnings for discretionary spending.
