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On-Target Earnings (OTE)

Also known as: OTE

On-Target Earnings (OTE) is the total compensation a salesperson would earn if they hit 100% of their assigned sales quota: base salary plus the full variable/commission component. It is not a guarantee — it is what full quota attainment pays.

The base-to-variable split matters more than the headline OTE number. A $150,000 OTE at 70/30 base-heavy is a very different job, and a very different risk profile, than the same $150,000 OTE at 40/60 variable-heavy.

Quota attainment rates vary enormously by company and role; a candidate evaluating an OTE offer should ask what percentage of the team actually hits 100% quota in a typical period, since that number determines whether the headline OTE is realistic or aspirational.

Example

An OTE of $160,000 split 50/50 means a $80,000 base salary plus up to $80,000 in commission at 100% quota attainment; missing quota reduces the variable portion accordingly.