OTE — on-target earnings — is the income a sales job is designed to pay at 100% of quota: your base salary plus the commission you'd earn at full attainment. It's the headline number a recruiter quotes and the one you compare across offers — and the one most new reps misunderstand. The essential fact is that OTE is a target, not a promise. You only collect the commission half if you actually hit quota, so the real question about any OTE is never just the number — it's the split and the realistic attainment behind it. The glossary has the working definition; this lesson is how to read one.
OTE anatomy — here is the asset
Every OTE is two pieces added together:
| Piece | What it is | Guaranteed? |
|---|---|---|
| Base salary | The fixed pay you get regardless of performance | Yes — it's your floor |
| Commission at 100% quota | The variable you earn if you hit plan | No — only at attainment |
OTE = base + commission at 100% quota. A $55,000 base with $25,000 in commission at full attainment is an $80,000 OTE. The split is where the risk lives: an SDR or BDR plan is usually base-heavy, while an account executive plan leans commission — so the same OTE can mean a safe job or a swingy one depending entirely on the split.
How to read a split (the trap)
Two offers with the identical OTE are not the same job. Offer A: $70k base + $30k OTE-style commission = a high base (your floor covers you while you ramp). Offer B: $40k base + $60k OTE-style commission = a high variable (great if you crush it, painful if you don't). For a first sales job the base-heavy offer is usually the safer pick, because you're still learning to hit quota and your rent shouldn't ride on it.
The second thing to read is realistic attainment: what share of reps actually land at quota, and what does the commission half really average out to? An OTE is only as honest as the plan's attainability — a fat OTE almost nobody reaches is worth less than a modest one most reps hit. That's why the number to chase isn't the headline OTE, it's "what does the average rep in this seat actually take home in a quarter?" If a plan adds a draw, read whether it's recoupable before you count on it.
OTE across the career
Your OTE changes shape as you climb. As an SDR it's base-heavy — you're paid for consistent activity while you ramp. As you move up toward an account executive role — the B2B closer — the commission structure becomes most of your income and your OTE leans variable. Reading that shift early — and learning to read a comp plan's fine print — is what lets you compare the real pay of two roles instead of the number in the job post.