Draw against commission employment
You are hired as a recruiter and will get paid $16/hour (as a 1099 independent contractor) to work 40 hours per week. That equals $2,560. If you make a placement in your first month of work that earns you a commission of $5,000, you will be paid the remainder of
$5,000 - $2,560 = $2,440.
However, if it takes 3 months to make the initial placement, you have been paid $7,680 in salary so far. Factoring in the $5,000 commission amount, do you now owe the employer $7,680 - $5,000= $2,680? This is the main concept I want to be clear on, because there is obviously a huge difference between being in debt to your employer and not being in debt.
If that is indeed the case, your effective monthly pay for that 3 month period decreased from $2,560 to $1,666. So, to summarize, you have to work very hard in a tough market to be over the commission amount so that you don't wind up owing money to your employer, right?