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What is OTE? How pay works in your first sales job

OTE stands for on-target earnings. It is your base pay plus the commission or bonus the employer expects you to earn if you hit your target. The key word is expects. You only reach OTE if you hit your target. Ask what share of the team does.

By ChannelCareers. Updated . Built from our live job posts and public sources, listed at the bottom.

See Entry-level sales (SDR and BDR) jobs

Key takeaways

  • OTE is base pay plus the commission the employer expects you to earn. It is a target. Only your base is fixed.
  • Base is the fixed part. Variable is the part that depends on your results.
  • Ask for base and variable in dollars, at 100% of quota.
  • Ask what happens during your ramp, the first months while you learn. Some jobs add a draw, which is an advance on commission.
  • A posted range may be base only. Check the post and ask.

What do base, variable and commission mean?

Base is the fixed pay. You get it whether or not you hit your target.

Variable is the part tied to results. Commission and bonus are the two common kinds of variable pay.

OTE adds the two together, at 100% of your target. A post that says "$80,000 OTE" is describing base plus variable. Base alone would be lower.

Here is one data point. The Bridge Group 2025 SDR report puts the median SDR OTE at $80K. The split is 68:32 between base and variable. That works out to about $55K base and $25K variable. Your offer may look very different.

How do SDRs earn commission?

Closers often earn commission on a signed deal. SDRs start the conversation, so their plans often pay on something earlier. That can be a meeting held or an opportunity created.

Plans differ a lot. Ask exactly what counts, and when it counts. A meeting that is booked is not always a meeting that is held. For the job itself, read our SDR guide.

What is a quota and a ramp?

A quota is your target. For SDRs it is often a number of meetings or opportunities each month. Hit 100% of it and you earn your full OTE.

A ramp is the time it takes a new hire to reach full speed. The Bridge Group 2025 report puts the average SDR ramp at 3.0 months. During a ramp, your target may be lower. Ask how that changes your pay.

Also ask how many reps hit quota. The Bridge Group 2025 report found that 60% of SDRs were at quota. It called that the lowest on record. That means about 4 in 10 did not hit quota.

What is a draw?

A draw is an advance on your commission. Some companies pay one while you ramp, so your pay is steadier before the commission starts to flow.

A draw can be recoverable. That means you repay it out of later commission. Ask which kind you would get, and what happens if you leave.

What are accelerators, caps and clawbacks?

An accelerator is a higher commission rate once you pass 100% of quota. One example, from a Craft Ventures essay summed up by Echai: 10% commission up to quota, then 15% above it. That example is for closers, not SDRs.

Two more terms can show up in a comp plan. We did not find a firm source on how often they are used, so treat them as things to ask about.

  • Cap: a limit on how much commission you can earn. Ask if there is one.
  • Clawback: a rule that lets the company take back commission in some cases. Ask when it applies.

What does pay look like in posts on ChannelCareers?

On October 21, 2026, 18 entry-level sales posts on ChannelCareers listed OTE pay with a range. The typical OTE range was about $75,000 to $85,000.

The live pay box on this page shows today's base pay range.

Most posts show only a base number or no pay at all. Of the 249 live entry-level sales posts that day, 131 labeled their pay as base, 20 as OTE and 98 showed no pay. These numbers change every day as posts come and go.

Our numbers sit close to the Bridge Group figures above. Treat all of them as a rough picture and not as an offer.

Pay plans differ by company. Your offer letter or comp plan is what counts. Laws change. This is not financial or legal advice.

What should you ask in the interview?

In our view, asking about pay is fair. Bring this list.

  • What is the base, and what is the variable, in dollars, at 100% of quota?
  • What counts toward quota? Meetings booked, meetings held or opportunities created?
  • What percent of SDRs hit quota last year?
  • What are the quota and the pay during my ramp?
  • Is there a draw? Is it recoverable?
  • Are there accelerators above 100%? Is there a cap?
  • When is commission paid? Is there a clawback?
  • What do reps on this team usually earn?
  • How long do SDRs usually stay in this job, and where do they go next? The Bridge Group 2025 report puts average SDR tenure at 1.9 years.
  • Want more to ask? Our guide to interview questions has a full list.

Do employers have to post pay?

In some places, yes. Rules differ by state, and they change. Here are two we checked on official sites.

  • California: employers with 15 or more employees must put the pay scale in job postings. If pay is based on commission, the post must include a commission range. Bonuses do not have to be posted. The state Labor Commissioner says this covers jobs that may be filled in California, including remote ones.
  • New York: job ads must give a pay range. The rule covers employers with 4 or more employees. The ad must also say if the job is commission based.

Check whether a posted range is base only or includes commission. If it is not clear, ask the recruiter.

This is a short summary and not legal advice. Check the official pages linked below for the current rules.

Which pay words should you know?

  • OTE: on-target earnings. Base pay plus the commission the employer expects you to earn.
  • Base: the fixed part of your pay.
  • Variable: the part of your pay that depends on results.
  • Commission: money paid when a sale, meeting or other target happens. Your plan says which.
  • Quota: your target for a month or a quarter.
  • Ramp: the first months in a job, while you learn. Your target may be lower.
  • Draw: an advance on commission.
  • Accelerator: a higher commission rate after you pass 100% of quota.

Want to see these jobs? Browse the live entry-level sales posts below.

What does it pay, and who is hiring?

240open jobs
129companies hiring now
13%remote
156jobs show pay

Typical base pay: $53,000 to $70,000

$37,000$140,000

From 101 jobs that list a yearly base salary. The dark part is the typical range.

Senior roles can pull the top end up. Some jobs list pay with a bonus included, so read each post.

From the Entry-level sales (SDR and BDR) jobs on ChannelCareers on November 1, 2026. These numbers change as jobs open and close.

Who is hiring right now

Arrow Electronics 14Wolters Kluwer 8Verkada 7AvePoint 6ZoomInfo 6Oracle 5

Newest Entry-level sales (SDR and BDR) jobs

Questions, answered fast

What does OTE stand for?

On-target earnings. It is base pay plus the commission the employer expects you to earn.

Is OTE guaranteed?

No. Only your base pay is fixed. The rest depends on your results. A draw can steady your pay early on, but a recoverable draw is paid back from later commission. Read the offer letter to see what is promised in writing.

What is a typical SDR pay split?

The Bridge Group 2025 report found a median of $80K OTE with a 68:32 split between base and variable. That is about $55K base and $25K variable. Plans vary, so ask for your own numbers.

What if most reps miss quota?

Then your real pay may land below OTE. The Bridge Group 2025 report found that 60% of SDRs were at quota. Ask the team what share hit it last year.

Why do some posts show only base pay?

Employers choose how to post pay. Many list base only, and some list nothing. If a post leaves out the variable part, ask for it in dollars.

What is a draw?

A draw is an advance on commission, often paid while you ramp. Ask if it is recoverable, which means you repay it from later commission.

Do remote jobs have to show pay?

Sometimes. California's Labor Commissioner says postings for jobs that may be filled in California, including remote ones, need a pay scale when the employer has 15 or more employees. Rules change, so check the official pages.

Is it rude to ask about commission in an interview?

We do not think so. Asking shows you read the post. Use the question list above and ask for dollar amounts.

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Sources

Our own live jobs, plus the pages below. Many are company blogs, so we treat their numbers as rough.