Flat Rate Commission
What is Pay-Per-Click?
Pay-Per-Click (PPC) is an online advertising model where advertisers pay each time a user clicks on their ad. It is commonly associated with search engines and social media platforms.
Advantages of PPC
- Immediate Results: Ads can generate traffic quickly.
- Targeting: Reach specific demographics and interests.
- Budget Control: Set daily or monthly limits on spending.
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Frequently asked questions about OTE
What does OTE mean in sales?
OTE stands for On-Target Earnings. It is the total annual compensation a sales rep will earn if they achieve 100% of their quota, including base salary and variable commission. OTE is a projection, not a guaranteed payout.
How is OTE calculated?
OTE is calculated by adding base salary to the variable commission a rep would earn at 100% quota attainment. For example, a rep with $80,000 base salary and $80,000 variable at quota has an OTE of $160,000. The ratio of base to variable is called the pay mix.
Is OTE guaranteed?
No. OTE is not guaranteed. It represents expected earnings at 100% quota attainment. Only the base salary portion of OTE is guaranteed. The variable portion depends on actual sales performance, and reps who miss quota will earn less than their OTE.
What is the difference between OTE and base salary?
Base salary is the fixed annual pay a rep receives regardless of performance. OTE is base salary plus variable commission earned at 100% quota. A $160,000 OTE with a 50/50 pay mix consists of $80,000 guaranteed base salary and $80,000 variable commission that depends on hitting quota.
Is OTE prorated during a ramp period?
OTE itself is typically expressed as an annualized figure, but the variable portion is usually prorated during the ramp period. During ramp, reps often receive reduced quotas and a draw or guarantee to bridge the gap until they can reach full attainment, which means actual earnings during ramp are lower than full OTE.
Does OTE include benefits or equity?
OTE includes base salary plus variable commission. It does not include benefits, equity, signing bonuses, SPIFFs, or other one-time incentives. Total compensation, which is a broader figure, includes these additional components.