OTE
Definition
On-Target Earnings -- the total expected annual compensation for a sales role when quota is fully achieved, combining base salary and variable commission.
OTE is the benchmark compensation figure used in sales recruiting and comp plan design. A typical AE OTE might be split 50/50 between base and variable, while SDR OTEs often lean 60/40 or 70/30 toward base. OTE is a commitment that the role can earn this amount if targets are met, not a guarantee. Understanding OTE structures is important for talent acquisition, benchmarking against market rates, and designing comp plans that attract and retain top performers.
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FAQ
What does OTE mean?
OTE is the benchmark compensation figure used in sales recruiting and comp plan design. A typical AE OTE might be split 50/50 between base and variable, while SDR OTEs often lean 60/40 or 70/30 toward base. OTE is a commitment that the role can earn this amount if targets are met, not a guarantee. Understanding OTE structures is important for talent acquisition, benchmarking against market rates, and designing comp plans that attract and retain top performers.
What are the best OTE tools?
Top tools related to OTE: HubSpot, Salesforce, Pipedrive, Attio, Folk.