Sales OTE/Quota Comp Plan
Sales comp uses OTE = base + commission. Quota is the dollar revenue needed to earn 100% of variable comp. This calculates payout at any attainment %.
| Base salary | — |
| Variable target | — |
| Quota | — |
| Achieved revenue | — |
| Attainment % | — |
| Commission earned | — |
| Total earnings | — |
Sales OTE (on-target earnings) = base + 100%-attainment variable. Pay mix splits base/variable: 70/30 enterprise, 60/40 mid-market, 50/50 inside sales. Accelerators reward over-quota performance.
Pay Mix Standards
Enterprise sales (big-deal, long-cycle): 70% base, 30% variable. Mid-market: 60/40. Inside sales / hunters: 50/50. Account managers (renewals heavy): 75/25. Mix balances motivation vs cashflow stability.
Accelerator Design
Standard: 100% commission to 100% quota. Above quota: 1.5-3× rate to incentivize over-performance. Often capped at 200% attainment to prevent runaway costs. Best reps blow past caps regularly.
Common Plan Variants
Tiered commission rates (1% to $500K ARR, 2% above). Spiffs (Special Performance Incentive Fund) for new logos, multi-year deals, strategic accounts. MBO bonuses for non-quota goals (forecast accuracy, training).
Tax Treatment
Commissions are W-2 wages, withheld at supplemental rate (22% federal). Subject to FICA + state. Some companies allow 401k deferral on commissions — clarify with payroll.
Last updated May 2026. Sources: Pavilion Sales Comp Survey, Heinz Marketing Benchmarks.