How do we design a 100% commission plan, and how does that interact with a draw?

There are many different ways a 100% variable commission plan can be structured, depending on the needs of the business and the nature of the product sold. The most simple approach for pure new business developers is to use a flat commission rate based on expected revenue and the amount you need to pay the person, and then pay that rate on all new revenue for a specified period of time (e.g., 12 months). Often, but not always, the rate continues for an additional period of time at a reduced level. If the person is expected to retain control of the customer, or has a mix of new business and account management responsibilities, then plan design is considerably more complex. If there is a defined "hand off" point when the customer goes to an account manager, then you may need to consider doing a "hand off bonus" to compensate for the perceived loss of income from the new business developer. The problem if you don't do this, is quickly your new business developers become account managers (it's easier to farm than to hunt!). First rule in sales comp design is define the roles and accountabilities. From there, plan design is relatively easy.

The other thing to consider is the economics of the draw. Is there a valid business reason for delivering pay this way vs using a modest salary? Typically there is "recurring revenue" that is generating a relatively fixed amount of compensation that is actually acting as a base salary. I've found over 10 years of designing sales comp plans that 9/10 times using a 100% variable approach with a draw actually REDUCES the effectiveness of a sales incentive plan and makes it hard to attract talent vs using a modest salary + truly variable incentive. However, in some industries, this approach is the norm.