What is On-target earnings (OTE)?

On-target earnings, typically found in sales, is a pay structure where the total remuneration offered to the employee consists of their basic salary and a variable component i.e commission based on performance.

What is a good OTE?

Short answer, it depends. Sales reps salaries including commissions are dependent on how competitive the industry is,

Benefits of On-Target Earnings

The biggest benefit of OTE is that the sales reps are motivated to make their quota since this is an incentive that they can make on top of their base salary. OTE has shown to improve morale, prompt sales reps to push boundaries and improve overall sales productivity which leads to higher revenue for the organization.