Apply / Commission Structures / Draws & Guarantees
Ramped Quota
Quota gradually increases over the rep's first 3-6 months instead of starting at full quota.
Draws & Guarantees
Beginner
How it works
Instead of measuring a new rep against full quota immediately, the plan ramps attainment expectations: e.g., 0/25/50/75/100% across months 1-5. Pair with a non-recoverable draw to provide income while ramping. The standard practice for SaaS AEs and BDRs.
Formula
Effective_quota = full_quota x ramp_percentage(month)
Worked example
Example. Quota $100K/quarter; ramp 25/50/75/100% across Q1 first month, second month, etc. A new AE in month 2 of their first quarter is measured against $50K, not $100K.
Pros & cons
Pros
- Fair to new hires
- Reduces ramp-period attrition
- Aligns plan with realistic ramp
Cons
- Requires careful rules-of-engagement for territory transitions
- Adds complexity to capacity planning
Best for
- All new AE and BDR hires
- Reps changing segment or territory
- Reorgs and territory rebalancing