Publishers want outsourced salespeople to work on straight commission.
Outsourced salespeople want opportunity costs covered as the sales cycle begins.
How to bridge the gap? Enter the draw.
The draw allows publishers to test outsourced salespeople as projects get started. Small payments are made to the salesperson monthly. Once sales are made, commissions are deducted from draws that have been paid. Afterwards, the engagement changes to straight commission.
With a draw, publishers and outsourced salespeople both go through a vetting process. The publisher sees how good the salesperson really is, and the salesperson can see how well the publisher’s services really sell.
Engagements paid on straight commission are less likely to strike this balance. The publisher and the outsourced salesperson are likely to give less, and the engagement is more likely whittle away.
There is an obvious alternative to the draw: hire a salesperson W-2 and see how they do. If they are not successful, or if they can’t be coached into being successful, they can be let go.
The draw can be preferable. It allows outsourced salespeople to cover opportunity costs and allows publishers to be paid back draw payments as soon as possible. The draw offers attractive sales arrangements that begin on the most complementary footing.