Total expected compensation, including base salary and variable commission, if a representative hits 100% of quota.
How OTE (On-Target Earnings) is used in sales
In a real sales workflow, total expected compensation, including base salary and variable commission, if a representative hits 100% of quota. OTE itself isn't a resume line — it's for comp negotiation and cover letters. On the resume, use quota attainment (which drives OTE) as your proof point instead. This helps a hiring manager understand how the term connects to the work you performed.
OTE is most commonly seen written out in job postings as something like "$70K base / $140K OTE" — the second number is what a rep would take home annually if they hit exactly 100% of quota, not a number on top of the base. The split between base and variable typically ranges from 50/50 to 70/30 depending on the role and how directly a rep's actions drive revenue (SDR roles often skew toward more base security; closing roles like AE often carry more variable). Reps who exceed quota can earn above OTE through accelerators; reps who miss quota earn below it.
Frequently asked questions
Is OTE guaranteed pay?
No. OTE represents expected earnings at 100% quota attainment, combining base salary and variable/commission. Actual take-home pay depends on performance against quota, and can be higher (with accelerators) or lower than the OTE figure.
What's a typical base-to-variable split for OTE?
Common splits range from 50/50 to 70/30 (base/variable). Roles with more direct control over closing revenue (like AE) often have a higher variable component, while roles further from the close (like SDR/BDR) often carry more guaranteed base.
Is a higher OTE always better?
Not necessarily. A high OTE built on an unrealistic quota or an aggressive variable split can be harder to actually hit than a lower, more achievable OTE. It's worth asking about average attainment rates on the team before evaluating an OTE figure at face value.
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