On-Target Earnings (OTE) defines total compensation at 100% quota. It's the number recruiters quote and reps target.
OTE = Base Salary + Commission at 100% Quota
OTE Split Ratios
The proportion of base to variable pay in the OTE:
| Role | Typical Split | Rationale |
|---|---|---|
| SDR / BDR | 70/30 | Focuses on activity, not closed revenue |
| Account Executive | 50/50 | Balanced incentive for closing |
| Enterprise AE | 60/40 | Longer cycles; more base to cover gaps |
| Sales Manager | 60/40 | Rewards team performance |
Accelerators
Most well-designed comp plans include accelerators above 100% OTE — higher commission rates for revenue above quota. Common structure:
- 0–50%: 50% of standard rate
- 50–100%: 100% of standard rate
- 100–125%: 150% of standard rate
- 125%+: 200% of standard rate
This design rewards overachievers disproportionately and retains top performers.
Why OTE Matters
A rep knowing their OTE can calculate the revenue needed to achieve any income target. Use the commission calculator to model different quota attainment scenarios before accepting a new role.