On-Target Earnings

Also called OTE

On-target earnings: a salesperson's total expected pay if they hit 100 percent of quota, combining base salary and commission. The standard way sales comp is quoted.

Why it matters

OTE and its split between base and commission shape how reps behave and who you can hire. Designing sales compensation well, rewarding the outcomes you want, is one of the trickiest and most important parts of scaling sales.

For example

A sales rep's package is 20 lakh on-target earnings: 10 lakh base plus 10 lakh commission if they hit quota.

Go deeper

Founding Sales: The Early-Stage GTM Handbook Pete Kazanjy · guide On-Target Earnings in context: the free handbook on running early-stage sales as a founder, from first outreach to a repeatable motion. Open foundingsales.com →

Related terms

Also in Starting Up

See how founders actually handle this on Getting your first customers, part of the Starting Up hub.

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