What is OTE and how realistic is it?

OTE (On-Target Earnings) is base salary + commission if you hit 100% of quota. Reality check: only 40-60% of reps hit quota at most companies. Calculate realistic earnings at 70-80% attainment, not 100%.

Red flags: OTE more than 2x base (unrealistic commission structure), company won’t share attainment data, vague quota definitions.

How should I evaluate quota difficulty?

Key questions: (1) What % of reps hit quota last year? (2) What’s the average attainment? (3) How often does quota increase? (4) Is it individual or team-based?

Good signs: 50-70% quota attainment rate, quotas based on historical data, clear commission structure, accelerators above 100%.

Bad signs: <30% attainment, frequent mid-year quota increases, complicated commission plans, long payment delays.

What’s better: high base or high commission?

High base (60-70% of OTE): More stable, better for mortgage/loans, lower risk. Common at larger companies. Good for steady performers.

High commission (base <50% of OTE): Higher upside, rewards top performers, riskier. Common at startups. Good if you’re confident in product-market fit and your ability.

Sweet spot: Base = 50-60% of OTE with uncapped commissions and accelerators above 100% quota.

How do I negotiate sales compensation?

Negotiation tactics: (1) Ask for attainment data before accepting, (2) Negotiate accelerators (150%+ payouts above quota), (3) Request quarterly vs annual quota (more achievable), (4) Negotiate ramp period (protected earnings while you learn), (5) Ask about equity for senior AE roles.

Get in writing: Commission structure, payment terms, quota methodology, ramp period, territory assignment.

What are typical commission structures?

Tiered: Increasing commission rates as you hit milestones (e.g., 5% at 0-70%, 10% at 70-100%, 15% above 100%).

Flat rate: Fixed percentage regardless of attainment (e.g., 10% on all deals).

Accelerators: Extra bonuses above quota (e.g., 1.5x commission above 100%).

Best for reps: Tiered with accelerators and no commission caps.