Skip to content

Salary & OTE

How sales compensation is structured

What base, OTE, commission, accelerators and clawbacks actually mean, how the splits differ by role, and what to check before you publish a range.

Salary and OTEReviewed by Adroit Staffing editorial reviewPractice guidance, no data claims7 min read

The short answer

Sales pay is normally quoted as On Target Earnings: a fixed base salary plus variable commission earned at 100% of quota. The base-to-variable split is tighter for closing roles and wider for pipeline-generation and post-sale roles, and the detail that matters most is how and when commission is actually paid.

Key facts

OTE
Base salary plus variable pay at 100% of quota
Split convention
Quoted as base/variable, e.g. 60/40
Accelerator
A higher commission rate above target
Clawback
Commission recovered if a customer cancels or does not pay
Figures
This page explains structure only — no salary figures are published without a cited source

The components

Components of a sales package Definitions of the standard components of a sales compensation package and what to check about each one.
ComponentWhat it meansWhat to check
Base salaryFixed, paid regardless of performanceWhether it is liveable during ramp
Variable / commissionEarned against quotaThe rate, and what triggers payment
OTEBase plus variable at 100% attainmentWhether anybody actually achieved it last year
AcceleratorsHigher rate above targetThe threshold and whether it is capped
Ramp guaranteeCommission guaranteed during onboardingDuration and whether it is repayable
ClawbackRecovery of paid commissionThe window and the trigger events

How splits differ by role

  • Pipeline-generation roles usually carry a smaller variable share, because the outcome is partly outside their control.
  • Closing roles carry the largest variable share, often approaching an even split with base.
  • Leadership variable pay is typically tied to team attainment and sometimes to retention or hiring.
  • Post-sale roles are usually weighted towards base with a smaller retention or expansion bonus.

Questions to answer before you publish a range

  1. 01What percentage of the team reached OTE in the last full year?
  2. 02When is commission paid — on signature, on invoice or on cash collection?
  3. 03Is there a cap, and where?
  4. 04What happens to commission on a deal that closes after the seller leaves?
  5. 05Is the ramp guarantee repayable if the person leaves inside twelve months?

Why there are no figures on this page

Salary figures move, vary by region, sector and funding stage, and are frequently quoted without a source. We publish specific ranges only where we can cite where the number came from and when it was read. Where we cannot, the page stays unpublished rather than becoming another uncited number on the internet.

Payment timing is the term candidates get wrong

Two offers with an identical OTE can pay very differently across a year. Commission paid on signature reaches the seller within weeks; commission paid on cash collection can sit unpaid for a quarter or more in enterprise deals with long payment terms. Neither is unfair, but only one of them matches how most candidates model their income.

Say the timing out loud at offer stage, with an example: a deal signed in month one, invoiced in month two, collected in month four, and the month the commission lands. Candidates who understand the mechanics rarely object to them. Candidates who discover them in month five usually start looking.

Signals that a plan will cause problems

  • A quota set from a board target rather than from what the current motion demonstrably produces.
  • A plan that changes mid-year without a written transition rule for in-flight deals.
  • Accelerators that only trigger at an attainment level almost nobody has reached.
  • Clawback windows longer than the customer's first renewal decision.
  • A ramp guarantee that becomes repayable on resignation, which quietly converts pay into a retention lock.
  • Multipliers on so many measures that no seller can calculate their own earnings.

Common questions

Should we advertise a salary range?
Yes in most cases. It reduces wasted process on both sides, and candidates increasingly filter out adverts without one. Publish a range you would actually pay.
Is a high OTE with a low base attractive?
Only to candidates who believe the OTE is achievable. If most of the team missed target last year, an aggressive OTE reads as a warning rather than an opportunity.

Sources and review

Written by
Adroit Staffing
Reviewed by
Adroit Staffing editorial review
First published
Last reviewed

Reviewed every six months, and re-checked whenever a cited source changes. Next review due by . If a figure here no longer matches what you are seeing, tell us and we will re-check it.

This page is practice guidance from our own Sales and GTM recruitment work. It makes no claims about current market data, so it cites no external figures.

Related guidance

Read next

The same role and topic, covered from a different angle.

  • Hiring guide

    How to hire an Account Executive

    How to brief, assess and hire an Account Executive: matching deal size and cycle, testing discovery properly, and reading quota evidence honestly.

  • Hiring guide

    How to hire your first salesperson

    A founder's decision tool for the first sales hire: whether you are ready, which profile fits, what to hand over, how to assess without a sales function, and how to set up month one.

  • Hiring guide

    Selling a technical product

    How to hire salespeople for DeepTech, engineering-led and technically complex products: what technical credibility actually means, how to test it, and what not to over-index on.

  • Hiring guide

    How to hire a Sales Manager

    How to hire a frontline Sales Manager: what the role owns, when a team genuinely needs one, how to test coaching rather than personal selling, and the promotion decision.

Hiring someone who has to sell?

Tell us what you are trying to build. We will tell you honestly whether we are the right people for it.