How Guaranteed Advance Draw Works

APPENDIX A: PRICING AND COMPENSATION GUIDELINES  

   1.0  Commission, Draws, Splits and Increase Thresholds  
The services performed by the Contractor under this Agreement shall be performed at the rate specified below, and shall not exceed the total estimated amount specified below.  This compensation plan is subject to change on a yearly basis. The company may at its discretion choose to start Contractor at a different amount at any time during the course of this agreement, provided Company notifies Contractor in writing.  

Commencing with the first pay period, starting on March 16, 2017, the Contractor will be paid twice a month on the first and fifteenth of each month, Contractor shall receive a draw against commissions of $1000 each pay day, paid twice a month, $2000 a month for the first six months of this agreement, provided Contractor is meeting all minimum quotas.  

The first Payment of $1000.00 will be transferred to Contractor’s Bank Account on April 1, 2017.

This will continue for 12 more pay days, ending on September 15, 2017.  

Commencing on October 1, 2017, provided quotas have been met, Contractor will move to a minimum draw amount of $2500 per month, paid in $1250 twice monthly payments on the 1st and 15th of each month.  

Provided minimum quotas are met, Contractor will then receive an increase on the base draw amount March 15th, 2018 to $3000.00 per month, payable in twice monthly payments on the first and fifteenth of each month in the amount of $1500.00.   

    2.0  Quotas  
Contractor must meet these minimum Verified Invoice Created Dollar Totals in order to be eligible to receive the draw amount listed in 1.0 above. The first quota amount must total $10,000 for the first sixty days from the start of this agreement.  That’s calculated as invoices created and verified by the Contractor that total an aggregate minimum amount of $10,000.00 (ten thousand dollars and no cents).  

At the end of the first 90 days (the Three Month Quota), Contractor must have created a dollar amount of verified invoices that total a minimum of $16,500 (sixteen thousand five hundred dollars) or the Contractor may be terminated or risk having the amount of draw dollars be reduced or have it recalled for repayment in part or in whole.  

The following is a chart of the aggregate total the Contractor must hit in New Created Verified Total Invoice dollars each 30 days for the first 3 years of this agreement  

4 month – $23,500  
5 month – $31,000  
6 month – $39,000  
7 month – $47,000  
8 month – $55,000  
9 month – $63,000  
10 month- $71,000  
11 month- $79,000  
12 month- $87,000  
13 month- $97,000  
14 month- $105,000
15 month- $113,000  
16 month- $121,000  
17 month- $129,000  
18 month- $137,000  
19 month- $148,500  
20 month- $157,000  
21 month- $165,500  
22 month- $174,000  
23 month- $182,500  
24 month- $191,000  
25 month- $200,000  
26 month- $209,000  
27 month- $218,000  
28 month- $227,000  
29 month- $236,000  
30 month- $245,000  
31 month- $254,000  
32 month- $263,000  
33 month- $272,000  
34 month- $281,000  
35 month- $290,000  
36 month- $299,000  

Each 6 month interval after this requires a minimum of $50,000.00 in verified new created invoice dollars.      


   3.0 Bonus Schedule  
Bonuses are based on billing.  Billing is not “Created Invoices” as described in 2.0 above. Gross billing is done by Company based on the move in date of Created Invoices by the Contractor.   

If Gross Billing hits the bonus thresholds listed in the schedule below and in the month the billing threshold is met the Contractor hits a minimum closing ratio of 8% with a minimum intake of 150 New Leads entered into the Contact Management System, then the Contractor will earn a Bonus, based on the schedule below, that will be divided into two payments, the first half of which will be paid on the first of the month 30 days after the month the bonus was earned and the second half paid on the 15th of the month 45 days after the month the bonus was earned.


The Contractor will receive bonuses according to the following schedule based on Dollars billed out and three levels of closing Ratio Thresholds. If the Closing Ratio is measured at 13.0-15.9% and the Contractor inputs a minimum of 150 new leads, the bonus amount escalates as shown. Likewise, if the Closing Ratio hits a percentage of 16% or above, and the Contractor inputs a minimum of 150 new leads, the bonus amount escalates as shown below, based on the Gross Billing Monthly Amount represented in the first column.

Gross Billing in a month 8% Closing Ratio Bonus Amount 13% Closing Ratio Bonus Amount 16% Closing Ratio Bonus Amount
$8,500 $500.00 $650.00 $800.00
$10,000 $1,000.00 $1,150.00 $1,300.00
$11,500 $1,150.00 $1,300.00 $1,500.00
$12,500 $2,000.00 $2,200.00 $2,450.00
$14,000 $2,200.00 $2,500.00 $3,000.00
$15,000 $3,000.00 $3,250.00 $3,500.00
$16,500 $3,250.00 $3,500.00 $3,750.00
$17,500 $3,500.00 $3,750.00 $4,000.00
$18,500 $4,250.00 $4,500.00 $5,000.00
$19,500.00 or more $4,500.00 $5,000.00 $5,500.00

                        


   4.0   Tax Responsibility  
The Company shall not be responsible for federal, state and local taxes derived from the Contractor’s net income or for the withholding and/or payment of any federal, state and local income and other payroll taxes, workers’ compensation, disability benefits or other legal requirements applicable to the Contractor.