(FYI)Minimum Guaranteed Salary

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Jul 1, 2009 4:08 pm

I just completed my first selling month with EDJ and saw something peculiar on my pay stub. As of January 09" EDJ has adopted the Minimum Guaranteed Salary (MGS) which for me in a four week month is $1820. I discovered that if your commissions are below that amount the firm will pay you the difference to ensure you gross at least the MGS monthly. One caveat however is that whatever the firm has to pay to make up the difference will come out of your future commissions. If you're in a position to where you have to rely upon the MGS for more than a few months you'll probably be handed walking papers anyway. At any rate, it's nice to know that if you have an awful month in the early years you'll at least make the MGS and be able to pay a few bills. I’m not sure if every firm participates in this.<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />


I personally in my first month am over 200% above standard. My first month I grossed $2520 as a new/new. I have until the end of October to Gross the remaining $5480 to achieve my first milestone bonus which is $4000.


Jul 1, 2009 4:15 pm

If you don't hit the MGS after your newbie salary goes away, you will get your walking papers.... I promise.

 
keep up the good work ya basta!
Jul 1, 2009 4:22 pm

It's called a draw.  I can't believe the pay structure was a mystery until this point!  My company works on a draw too for the employee side of the biz.  Our draw is the same amount as well. 

Jul 1, 2009 4:34 pm

In the car dealership world it's called going into the bucket. Most people in the bucket never came out. Maybe they sold a cousin or neighbor a car to get by another month, but it only prolonged the inevitable. I'm sure the same idea applies here.

Jul 1, 2009 4:40 pm

It's not a draw.  It's minimum wage.  Jones is required to pay you minimum wage for the 40 hours a week you work.  That came about a few years ago as a part of some lawsuit involving CA and some other states. 

Jul 1, 2009 4:43 pm

Its a draw.  You have to pay it back with future commissions.  You don't have to pay back minimum wage salary, from my understanding.  The draw concept has been around for decades, some companies just decided to get in it later than others, I guess.  All I know is that Ameriprise hasn't raised theirs in about 15 years.  15 years ago that $910 bi-weekly check for the delinquints was hot cash, but they haven't exactly put any cost of living increases on it.  Today its a car payment and a few dinners with your girlfriend.

Jul 1, 2009 5:00 pm
3rdyrp2:

Its a draw.  You have to pay it back with future commissions.  You don't have to pay back minimum wage salary, from my understanding.  The draw concept has been around for decades, some companies just decided to get in it later than others, I guess.  All I know is that Ameriprise hasn't raised theirs in about 15 years.  15 years ago that $910 bi-weekly check for the delinquints was hot cash, but they haven't exactly put any cost of living increases on it.  Today its a car payment and a few dinners with your girlfriend.

 
Not if you're the Governor of South Carolina.  That doesn't even buy you a plane ticket!
Jul 1, 2009 6:37 pm

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Jul 1, 2009 7:05 pm

You can call it what you want but that is the classic definition of a draw. Walks like a duck, quacks like a duck,  YOU SUCK!
 

Jul 1, 2009 7:12 pm

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Jul 1, 2009 7:16 pm

Oh, I agree with that.  It's what happens when you are not 1099.  They must pay you for your hours.  In fact, I'm not sure how they get away without pay the losers OT 

Jul 1, 2009 7:18 pm

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Jul 1, 2009 7:24 pm

ha .. me too and working about 30-35.  I felt guilty not logging more hours than I worked since so many idiots were saying how much they were working and how tough it was! Ah, the good ol' days

Jul 1, 2009 7:39 pm

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Jul 1, 2009 8:30 pm

Actually, I believe in the 5 states the MGS does not need to be repaid with future commissions.

Jul 1, 2009 9:33 pm

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Jul 1, 2009 10:16 pm

windy...go...re...read....his....e...mail....he....said....5...states....not...your...state...ball....licker

Jul 2, 2009 6:24 am

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Jul 2, 2009 6:59 am

Asking what you are doing and asking for "advice" are two very different things. I ask for advice from people that have a track record and will shoot me straight, not some guy 12 weeks ahead of me in the process putting up similar numbers to myself. By all means post the PM for all to see.

With your lack of reading comprehension displayed I don't expect you to see the difference.  In fact, you've never shared any specific tactics of what you are doing so I still question it.


Jul 2, 2009 9:07 am

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