On-Target Earnings (OTE) Model Explained

On-Target Earnings (OTE) Model Explained







The OTE or On-Target Earnings model explained. Even if you’re new to sales, you’ve probably seen some mention of on-target earnings, or OTE, and wondered, “What does that mean?”

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What does OTE mean for your income? OTE doesn’t tell you exactly what you’re going to be earning with a job. It’s a way of letting potential hires know approximately how much they can expect to earn if they hit their targets.


OTE helps paint a clear picture of what your compensation package should look like, which can be problematic with sales because there are often quite a few variables that come into the picture, like whether or not you hit your targets.


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