Model OTE, base/variable split, and accelerators at every attainment band. See exactly what you're paying — and what it costs the company — before the offer goes out.
| Attainment | Revenue Closed | Variable Earned | Base | Total Comp | Company Cost |
|---|---|---|---|---|---|
| 50% | $400.0K | $50.0K | $100.0K | $150.0K | $192.0K |
| 75% | $600.0K | $75.0K | $100.0K | $175.0K | $224.0K |
| 100% | $800.0K | $100.0K | $100.0K | $200.0K | $256.0K |
| 120% | $960.0K | $130.0K | $100.0K | $230.0K | $294.4K |
| 150% | $1.20M | $190.0K | $100.0K | $290.0K | $371.2K |
A comp plan is a behavioral contract. Every element — OTE level, base/variable split, quota multiplier, accelerator thresholds — signals to your reps what you actually value, regardless of what your culture deck says. Bad comp plans create bad behavior: too much base creates complacency, accelerators set too low reward average performance, uncapped commissions above 150% reward luck as much as skill. The components of a well-designed plan include OTE (typically benchmarked at 4–6× quota), base/variable split (60/40 to 70/30 for most AE roles; higher base for enterprise where cycles are long and reps may go 60+ days without a close), quota multiplier (how much revenue a rep needs to close to earn their variable), and accelerator design (most plans have a kicker at 100% attainment and another at 120–150%).
When modeling total cost, calculate what the plan pays at each attainment band — 50%, 75%, 100%, 120%, 150%. A plan that's cheap at 100% but expensive at 150% is actually a good plan: it means you're paying more when reps generate more revenue. The goal is to make the plan expensive in exactly the scenarios where the company is winning. Benchmark: typical AE OTE is 4–6× quota. Base/variable split is 60/40 for SMB, 70/30 for enterprise. Accelerators typically kick in at 100% (1.5×) and 125% (2.0×).
On-Target Earnings is the total compensation a rep earns when they hit 100% of quota. It's the sum of base salary plus target variable (commission at 100% attainment). OTE is the market benchmark used in recruiting. B2B SaaS AE OTE typically ranges from $120K (SMB) to $280K+ (enterprise).
SMB and mid-market AEs typically have a 60/40 split (60% base, 40% variable). Enterprise reps often have a 70/30 split due to longer sales cycles and fewer close events per quarter. SDRs often run 70/30 or 75/25 since they don't directly close revenue.
Accelerators are commission multipliers that activate above a quota threshold. A 1.5× accelerator at 100% means every dollar of revenue above quota earns commission at 1.5 times the base rate. A 2.0× accelerator at 125% means revenue above 125% earns double commission. They're designed to reward over-performance disproportionately to motivate reps to push past 100%.
The commission rate is OTE variable ÷ quota. A rep with $60K variable and $600K quota earns 10% commission on every dollar closed (at 100% attainment). Rates vary by segment: SMB SaaS typically 8–12%, enterprise 6–10% (because deals are larger and fewer per year). Accelerated rates above 100% add 1.5–2× to the base rate.
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