OTE is the total annual compensation a sales rep earns if they hit exactly 100% of quota — it is the sum of base salary plus on-target variable (commission). OTE is the headline number used in job postings and compensation benchmarking. Most B2B SaaS companies use a 50/50 or 60/40 base-to-variable split, meaning a $200K OTE rep earns $100K–$120K base and $80K–$100K in commission when at quota. OTE should be set so that quota is achievable by a solid majority of the team.