OTE means “on-target earnings” and refers to the commission available if an associate accomplishes all of their sales targets. This term appears frequently in job adverts for sales and retail jobs. OTEs are a potential component of one’s total remuneration, although they may not necessarily accurately reflect one’s actual salary. In the end, while contemplating a position, one should focus more on the basic wage than the OTE, as it can be impossible to fulfil the necessary sales targets and earn the full amount indicated.
During an interview, one must always inquire about sales goals and determine whether or not they are achievable given one’s sales skills. One firm’s sales goals may be more attainable than another’s, as sales goals vary from company to company.
An OTE may consist of a fixed lump sum, a predetermined commission %, or a combination of the two. It is easy to be enticed into a position by the promise of a high OTE, despite the fact that the basic wage is the only figure that can be guaranteed. When evaluating a position, it is best to prioritise guaranteed compensation.
OTE is also used to determine executive compensation based on the achievement of other goals, which may or may not be sales-related. Additionally, when evaluating OTE, one must examine if one must pursue new clients or whether new business from existing clients also contributes to fulfilling sales goals.
