On-Target Earnings (OTE)
What is OTE? On-Target Earnings Explained for Sales Roles
On-Target Earnings (OTE) is the total compensation a salesperson earns at 100% quota: base salary plus target variable pay. For example, $80K base + $40K target commission = $120K OTE.
OTE is how sales roles are communicated in job postings. It's what you'll earn if you hit target, not guaranteed. The base-to-variable split varies: 50/50 (high risk), 60/40 (moderate), 70/30 (lower risk).
When evaluating OTE, always ask what percentage of the team actually hits target. If only 20% of reps hit quota, the OTE number is aspirational, not realistic.