Sales commission glossary

Money paid to a rep against commission they have not earned yet, so they get a predictable paycheck. The draw is reconciled against the commission the rep actually earns.

Draws in ClearComp

A draw that works as a guaranteed minimum. If commission falls short of the draw, the rep keeps the draw and the shortfall is written off.

Example: On a $1,000 forgivable draw, a rep who earns $800 in commission is paid $1,000 and owes nothing.

Forgivable vs non-forgivable draws

A draw that works as an advance. Any shortfall becomes a balance the rep owes, and future commission pays that balance down before the rep is paid extra.

Example: On a $1,500 non-forgivable draw, a rep who earns $800 is paid $1,500 and carries a $700 balance.

Forgivable vs non-forgivable draws

A pay structure where the rep receives a fixed salary every period and commission is added on top, with no offset or balance.

A non-forgivable draw measured by quarter: the quarter's draw is recovered against commission starting in month one, any shortfall carries into months two and three, and the balance resets each quarter.

Dividing the credit for one sale between two or more reps. Splitting the production credit (rather than the commission dollars or the final payout) lets each rep's own rate and tiers apply to their share.

How commission splits actually work

A named split configuration that lists who shares a sale and at what percentages. Recording a sale against the code creates each rep's production credit automatically.

Example: S-001 “AE + Recruiter”: account executive 50%, recruiter 50%.

Splits and overrides

The share of a sale's value that counts toward a rep's production total, their tiers and their commission.

A payment to one rep, usually a manager or team lead, calculated as a percentage of another rep's commission. It can be paid on top of that commission or deducted from it.

Example: A 2% override on a recruiter who earns $1,000 pays the team lead $20.

Splits and overrides

A tiered rate where, once production crosses a threshold, the whole period's production is paid at the higher rate — not just the part above the threshold.

Example: 25% up to $300K, 40% above: at $350K the entire $350K is paid at 40%.

A tiered rate where each rate applies only to the slice of production inside its bracket, like tax brackets.

Example: 25% up to $300K, 40% above: at $350K, $300K is paid at 25% and $50K at 40%.

Recovering commission that was already paid, usually because a deal was cancelled, refunded or charged back. It is typically taken out of a later payout.

A one-off addition to or subtraction from a rep's payout — a correction, bonus or clawback — recorded with a reason.

A payout that has been reviewed and locked. Its numbers no longer change; any later correction is made as a visible adjustment.

An estimate of what a rep will earn for the period that is still running, based on production recorded so far.

Money paid back to a rep for an approved business expense. It is tracked alongside commission but is not commission.