What is meant by OTE - On target earnings in a salary structure?
Answers:
OTE = on-target earnings
The typical pay structure for a salesperson is composed of a fairly low basic salary with an additional amount of commission. The package will usually be called OTE or on-target earnings, meaning that if a salesperson hits the targets that you've specified for them, they will be guaranteed that amount of money. A higher commission can be paid if the person performs beyond this target. Such incentives naturally help to instil a desire for sales.
if you dont sell enough you earn less, if you sell more you earn more
It means if you sell enough product to match the given sales target this is the money you will recieve but if not then you will get less money.
Means that's what you get if you hit your target. Usually used for salespeople.
In a nutshell. You have to sell what ever your selling for the day. If you have 10 cakes to sell per day for five days then you get OTE. If however you do better then you can get extra pay for it. On the other side if you fail to get your OTE then you will not get the full amount of pay that you was expecting.
For example you may get $200 a week flat rate they may say $300 a week OTE, this now makes you work hard for the extra $100. Hope this helps.
In theory you should earn £xxx amount of money.
Usually applies to a sales job, your target is your agreed sales target. Usually you earn a proportion of that back for hitting the target.
Your OTE is your basic salary plus your bonus for hitting the agreed target.
If your OTE is £100k, then you would generally have a basic salary (say £50K) and would earn commission or bonus depending on performance. With 100% performance acheivement of goals you would expect to hit your on target earnings of £100k for the year.
Also known as variable based pay.
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