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Compensation

How to check whether a sales OTE plan fits the role

Connect on-target earnings to the seller's responsibilities, targets, support, ramp expectations, and written compensation plan.

CompensationGTM hiring

Check a sales compensation plan against the work the person will actually control. Explain base pay and target variable pay separately, then clarify the targets, support, timing, and rules that make the plan meaningful.

A headline OTE figure does not describe how a seller will earn it.

Define OTE clearly

OTE means on-target earnings. Salesforce's explanation describes it as annual base salary plus commission earned at full quota attainment. The variable portion depends on the applicable plan; it should not be presented as guaranteed base salary.

Use the company's approved compensation documents for the actual terms.

Compare the plan with the mandate

QuestionWhy it belongs in the discussion
What does the person own?Prospecting, closing, account growth, and systems work differ
What counts toward the target?Candidates need a clear definition of credited work
What support exists?Product, marketing, technical, and founder support affect execution
What happens during ramp?Initial learning and opportunity development need explicit treatment
When are results credited and paid?Timing matters to understanding the plan
Who handles exceptions?Ambiguity needs a named resolution process

Do not fill gaps in the plan with verbal assumptions.

Examine early-stage uncertainty

Illustrative situation: A fictional startup hires its first commercial employee to identify a buyer group, test messaging, and build initial opportunities. A plan designed for an established seller with a mature territory may not reflect that mandate.

The team should clarify how learning and sales responsibilities are expected to coexist. This guide does not prescribe a particular pay mix or target.

Show worked examples from the approved plan

Use clearly labeled hypothetical examples to explain how the actual rules apply. Have the compensation owner verify the calculations and conditions before sharing them.

Do not invent an attainment history when no comparable sellers have worked under the plan. If the role or plan is new, say that directly.

Avoid sharing another employee's private earnings as persuasion.

Align every version of the offer

The job posting, recruiter discussion, offer brief, and plan should use consistent definitions. Label base salary, target variable pay, and any separate equity component.

If a material term changes, explain the change before the candidate decides.

For the underlying mandate, compare founding account executive and GTM engineer roles. Use the offer decision brief to collect remaining questions and approval status.

Put this guide to work

Hire people who build like founders.

Share the role, the outcomes this person should own, and your hiring constraints. Refery brings specialist recruiters and trusted referrals behind one brief.