What is OTE (On-Target Earnings)?
OTE is a rep’s expected total pay at 100% quota attainment: base salary plus the target variable commission defined by the plan.
By Commishify Editorial Team · Published · Last reviewed
The basic idea
OTE is a planning measure, not a promise of actual pay. Actual commission can be higher or lower as attainment, eligibility, accelerators, draws, clawbacks, and approvals change.
A worked example
A role with $80,000 base salary and $40,000 target commission has $120,000 OTE at 100% attainment. The target commission should be tied to a defined quota period and plan version so offers and performance conversations use the same assumptions.
Using OTE responsibly
Compare roles using the same period and attainment assumptions. Explain how territory, quota, role changes, and plan exceptions affect the variable portion rather than presenting OTE as a guaranteed result.
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