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Most reps know their OTE, but they can't tell you what they'll actually earn at 85% or 115% attainment.
The math gets complicated fast. Tiers, accelerators, draws against commission—by the time you figure it out, the quarter is over.
When you can see the dollar value of hitting 110% instead of 100%, you fight differently. You push harder. You close that one more deal.
When you know exactly what that next deal is worth to your paycheck, you fight harder for it. It's not about quota. It's about cash in your pocket.
5 questions. 2 minutes. Know exactly what's in your paycheck.
Knowing your numbers is the first step. The next step is building the skills and systems that get you to 110%+ consistently — not just once.
15 minutes with Raju. No pitch, just clarity on your path to President's Club.
OTE (On-Target Earnings) is your total expected compensation when you hit 100% of quota. It's typically split between base salary (guaranteed) and variable commission (performance-based). A 50/50 split means half your OTE is guaranteed, half depends on results.
Flat rate pays the same percentage on every dollar. Tiered structures increase your rate as you exceed quota (e.g., 8% up to 100%, 12% from 100-120%). Uncapped with accelerators multiplies your rate above quota — this is where top performers make real money.
At 100% attainment, you earn your OTE. But a 1.5x accelerator above quota means every dollar from 101-150% pays 50% more. That's why the difference between 100% and 120% can be $30K+ extra commission. The math changes everything about how you prioritize deals.
When you know exactly what that next deal is worth — in real dollars — you fight harder for it. Knowing the dollar value of going from 95% to 105% changes your behavior in the final weeks of the quarter. It's not about quota. It's about cash in your pocket.
OTE varies by role, industry, and location. SDRs typically range $60-80K, AEs $100-200K, and enterprise reps $200-400K+. The key isn't the OTE number — it's the ratio of achievable vs. stretch. If fewer than 50% of your team hits 100%, the OTE is aspirational fiction. Always ask in interviews: "What percentage of reps hit quota last year?"
Accelerators multiply your commission rate when you exceed quota. A 1.5x accelerator means if your base rate is 10%, it becomes 15% on revenue above 100% attainment. Some plans have multiple tiers: 1.25x from 100-120%, 1.5x from 120-140%, and 2x above 140%. This is how top performers earn 150-200% of OTE.
Base salary is guaranteed pay regardless of performance. OTE includes base PLUS variable commission at 100% quota. If your OTE is $200K with a 50/50 split, your base is $100K guaranteed and you can earn up to $100K in commission. Higher base = lower risk. Lower base = higher upside. Most B2B sales roles range from 50/50 to 60/40 splits.
Effective commission rate = (Total Commission Earned ÷ Total Revenue Closed) × 100. This tells you what percentage of each dollar you closed turns into commission. If you earned $80K commission on $1M in closed revenue, your effective rate is 8%. Higher rates at accelerated tiers increase this as you exceed quota.
A draw is an advance on future commissions, essentially a guaranteed minimum payment. Recoverable draws must be repaid from future earnings if you don't earn enough commission. Non-recoverable draws are yours to keep either way. Common in new roles or slow quarters, draws provide stability but can create a "hole" you need to climb out of before earning real commission.