OTE or Base - what do you think is more important when looking for a new org?
OK yeah - seems like I should have mentioned that. Fair point!
1 Quota attainment 2 Base 3 OTE OTE is a big shiny number but I need the breakdown before I get amped up
Well no - If the OTE is 200k (50/50) and 100% is the average quota attainment, that's lower than say 300k (50/50) at 90% quota attainment. Look at OTE + Quota attainment, and then you're cooking on gas ;)
“OTE or base” is not what good reps are asking. If you’re a top performer then quota attainment, accelerators, and “what percent of reps in the role W2 over 300k” are the questions you should be asking. Become a rep that is so good that you could sell a mediocre product and work for a company that has a product so good a mediocre sales rep can sell it. If you focus on those 2 things you’ll make more money than you would have ever thought possible. “OTE or base” is a mindset that will hold you back.
this is really helpful - thanks!
Be careful with mediocre products though - I've seen even the best reps struggle when there's no product market fit. There's an old saying "through a great leadership team at a bad market and the market wins every time"...
Sure - in theory... but is there a real way to tell if a product is "mediocre" before you take the role?
Depends on company size but a few places to start - here to see rep attainment - LinkedIn check out the sales reps themselves can tie that back to attainment - funding rounds on crunch base - case studies on company website - review sites particularly ones that have comparisons like G2 - founder backgrounds on LinkedIn - do your own research on competitors the more complex the product and industry the harder this is
Research company on repvue look at their quota attainment. If it’s below 30% OTE means jack. If quota attainment is 60% or higher then most likely you can hit it. Having a strong base is also important so don’t get lowballed by these companies they take advantage of us laborers
This is really helpful - thanks!
I totally agree here! If no one is actually getting close to attainment, doesn’t matter what the commission is. I would think you’d want to join a team where most reps are 85% to quota or above. That tells a story. There must be product market fit and a good leadership team, and high performing sellers are usually a product of both.
I would say solid base + quota attainment + product/market fit
Base. OTE means nothing. Pay me fairly for my incredible skillset and incentivize me with commission. Without a decent base, don’t trust you’ll make OTE.
Always look for a strong base because that will pay your bills in the down months/quarters. This is also what a mortgage company will use if you are looking to buy a house (along with a PORTION of your variable). It will keep the stress to a minimum. Since most tech comp plans have OTE as 50/50, you've already negotiated yourself a higher variable. Boom. But, as others have said here, make sure you understand % of reps making their number and have your new leader walk you through your territory and how they see you getting to your number BEFORE you sign the offer letter
This is a question that has a TON of dependencies on where you are in life and what responsibilities you have. Also, understanding the strength of the organization, the product-market fit, etc is critical, because if you are able to land a role at a very top tier organization, the upside on the variable can be massive. So there's always a balance there. If a company is not willing to pay a reasonable living base wage for a professional seller, it may be indicative of other challenges that could also limit the upside on the variable compensation (i.e. weaker or slower advancing product, poor culture, etc). Good luck! ✌️
OTE really means nothing if its completely unattainable. So, yeah, attainment with good OTE is the way to go.
Quota Attainment for sure. You could have a million dollar OTE but if reps are only hitting 5% of plan then who cares.
base, a chill manager, good attainment all OTE is fake, look at the attainment 40-50% industry standard... OTE HAHAHAHAAHHA
Avg quota attainment from fully ramped reps is the only answer
Base 100%. OTE has too much of a luck/timing degree factored into it.
Personally I have a minimum base calculated on my economic needs, then I look at attainment %, market fit and then I care about the OTE.
This is kinda how I'm thinking about it I think... need to have a certain base to cover my expenses - and then hopefully if it works out commissions can be put towards savings/investments (and some fun stuff)!
Base and a good company (solid product, need, high value, past performance of team members). If you can crush quota for 3 years you’re well on your way to a new role / company where you will be paid handsomely
Base pays bills - quota attainment makes life fun (and you only learn about the real quota attainment once you're with the org). Always look for an appropriate Base, plus benefits.
Both are important! -Base: Is the company willing to invest in you? Also, if you ever need to go on leave (maternity, illness, etc), benefits are based on your salary. Don't underestimate its importance! -OTE: It's important to understand target earnings at 100%. AND what % of people are making it- is it realistic? How many people exceed? Are there accelerators if you are over? SPIFs? Also to consider: -Equity: RSUs can offer huge upside. It depends on the company how attractive is. For a post-IPO company, that's guaranteed income (even if it fluctuates with the market). -Benefits: there are huge variations in if or what is offered in 401K match. I've seen 0%-matching with a max around $20K. That is also guaranteed (deferred) income. Lots of things to consider outside of base and OTE!
Neither. OTE is fairy dust, base is a crutch. All I care about is professional development, meritocracy based leadership, and opportunity.
Average time to close - sales cycle has been something I've learned to ask about, along with attainment percentage. OTE is meh. The base can tell you if they expect you to hit those numbers at times but not always.
Always the guarantee. But, low OTE = quick burnout.
Quota Attainment and Territory
I've felt like a lot of SaaS companies are creating these "Commercial Account Executive" roles to clump SMB and MM together and underpay for the work. Has this been a thing, or am I just noticing this trend? (Or am I off base entirely?!)
I think you are on to something. My pervious role was exactly this though they said it was an Enterprise role. It definitely was a SMB/MM patch with maybe 3 larger accounts. However my base was $50K below the "market rate" for Enterprise roles and I'm not sure they even had a definition for what an Enterprise account actually is. Needless to say I am not there any more.
It should be a healthy balance. Too high of an OTE could have you raising questions, too low puts more pressure on attainment. You should always go in understanding what overachieving your quota looks like from an earnings standpoint, as well as the typical timeline to hit quota, historical attainment of the team, etc.
In sw sales ote and base should be 50:50… I always want to know what the percentages are over quota and then ask if 1m w2 can with a good to great year of performance.
Quota attainment, base, OTE
True
My personal opinion - for talented, experienced sales reps: 1. Quota attainment (albeit somehow tricky to guess in advance for yourself). Should be 35-40+%, otherwise quota targets seem to be unrealistic. 1. Product/market fit 1. OTE & average deal size (also the ratio should make sense: target quota in comparison with total compensation) 2. Good manager and team, team spirit, current/future company & product development - does not make sense to ride a dead horse, even if it was famous a few years ago! 3. Base comp & perks
Base
Base is very important in an early stage company where there is less history of success and quota achievement
base + quota attainment 100%
OTE - high base salaries are usually a sign of unattainable quotas
Depends on the org. High Quota attainment means a lower base is reasonable. In a setting where sales cycle is long and it takes time to build relationships a higher base is key to keep employees invested in the long term plan and opportunity
OTE always
Neither... quota attainment all day (with a reasonable OTE, of course :)