How to Create Draws

Draws are a frequent component of many commission plans.  Draws are like borrowing against future commissions.  Companies give reps commissions that they haven't fully earned yet.  They then take the amount that they fronted to reps out of subsequent commissions later on.  If you don't want or need your reps to pay back these kinds of loans but you want to give them a similar solution, you might also consider using ramps.

Draw Recipe Steps

How do you build draws in Spiff?   Well stepping back to think about it, we basically need to a few things:

  1. We need to determine when and how much commission we want to advance commission to a rep
  2. We need to determine when and how much commission we want to collect back from a rep

1. Determine When and How Much Commission We Want to Advance 

In Spiff you have several options as to when you want to advance commission.  If you don't really want to automate the process at all, i.e., if you don't want to make it rule-based, you can use Manual Adjustments.

Assuming you want to automate Draws, we need to do a few more things.  Let's assume you want to give a rep a draw in the first 3 months after hire.  Let's assume you use a fixed amount of Draw for each month.  Let's say the Draw will be for $1,000 each month.  

So now we just need to write some logic that identifies the statements that occur the first 3 months after a rep is hired and puts the Draw amount on each of those statements.

To do this we will create a new Rule in Designer.

 

2. Determine When and How Much Commission We Want to Collect Back

In Spiff you have several options as to when you want to collect back commission.  If you don't really want to automate the process at all, i.e., if you don't want to make it rule-based, you can use Manual Adjustments.


Did this help answer your question?

thumbs up
thumbs down

Thanks for the feedback! 🙏🏽