How to compare sales job offers on OTE and year-one pay
Two sales offers with the same OTE can pay very different amounts in your first year. The headline number assumes you hit 100% of quota from day one. It assumes no ramp, no cap and no plan changes. Here's how to compare offers on what they are likely to pay, not what they advertise.
Why OTE alone is the wrong comparison
On-target earnings (OTE) is base salary plus variable pay at exactly 100% of quota. Two things get in the way in year one.
- Most reps don't hit 100%. The Bridge Group's 2026 AE study covered 158 B2B companies. In it, 48% of reps hit their annual quota. RepVue's Cloud Sales Index put the share at 43.6% in Q2 2026.
- You start with a ramp. The same Bridge Group study put average AE ramp at 6.2 months in 2026. That's the highest in its history. Those months rarely pay full variable unless the plan guarantees it.
So compare offers on expected year-one pay. That's what a new hire on that team is likely to take home in 12 months.
The six numbers to collect for every offer
| Number | Where to get it |
|---|---|
| Base salary | The offer letter |
| Variable at 100% and the split | The offer letter and the comp plan |
| Share of the team at quota last year | The hiring manager |
| Ramp length, ramped quota and any guarantee or draw | The comp plan or the recruiter |
| Cap, accelerators and decelerators | The comp plan document |
| When commission is paid, and any clawbacks | The comp plan document |
If a company won't share attainment, even as a range, treat its OTE as best case. Our list of questions to ask a sales recruiter shows how to ask for each one politely.
Work out year-one pay in four steps
- Pick a realistic attainment. Use the team's real figure if you have it. If not, model three cases: 50%, 80% and 100% of quota.
- Adjust for the ramp. For each ramp month, use the guaranteed variable if there is one. If there isn't, assume you earn variable on the ramped quota at your realistic attainment.
- Apply the plan rules. A cap limits the upside, and a threshold or decelerator cuts pay below a set attainment. Assume a straight line in between unless the plan says otherwise.
- Add the one-offs and check the timing. Add any sign-on bonus, and check whether you'd repay it if you left early. If commission is paid quarterly in arrears, some of year one's earnings land in year two.
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Worked example: same OTE, different year one
Two illustrative offers, both at £130K OTE:
| Offer A | Offer B | |
|---|---|---|
| Base and variable | £65K + £65K | £75K + £55K |
| Ramp | None, full quota from month one | 3 months of guaranteed variable |
| Team at quota last year | 35% | 65% |
| Your assumed attainment | 60% | 90% |
| Year-one variable | £39K | £13.75K guaranteed + £37.1K earned |
| Expected year-one pay | £104K | £125.9K |
The OTE is identical. On these assumptions, Offer B is worth about £22K more in year one. Offer A only wins if you're confident of beating a team where most reps missed. This assumes a straight-line payout and no cap reached.
The tie-breakers beyond cash
| Factor | What to check |
|---|---|
| Territory | New, inherited or split, and whether there is pipeline to take over |
| Lead flow | How much pipeline comes from marketing and SDRs, and how much you source yourself |
| Manager | How long they've been in post, how they coach and how many reps left last year |
| Plan stability | How often the plan or quota changed mid-year |
| Benefits | Pension, health cover, holiday and any car or phone allowance |
Turn the comparison into a negotiation
Once you know each offer's year-one number, you know what to ask for. Say the higher OTE comes with the weaker year one. Ask for a ramp guarantee or a sign-on bonus to close the gap. Don't ask for a bigger OTE. Rank two or three asks and back each with evidence.
For the conversation itself, use our salary negotiation scripts. For caps, accelerators and draws, read how to negotiate OTE for a sales job. Never invent a competing offer or a deadline: it's easy to check and hard to recover from.
Sources
- The Bridge Group, AE Models, Motions & Metrics 2026 Research Report
- RepVue Cloud Sales Index, Q2 2026
Put the offers in a table: offer comparison calculator, OTE calculator.
Questions
How do I compare two sales job offers?
Compare expected year-one pay, not OTE. That's base plus variable at a realistic attainment. Adjust it for ramp, caps and when commission is paid. Then use territory, lead flow, the manager and plan stability as tie-breakers.
Is a higher base better than a higher OTE?
Often, in year one. Base is guaranteed. In the Bridge Group's 2026 AE study, only 48% of reps hit quota. A higher OTE wins when the team regularly hits quota and the plan is uncapped.
Should I include equity when comparing sales offers?
Keep it separate from the cash comparison. Private-company equity may be worth nothing. Treat it as a possible bonus and decide on the cash first.
Also: references for sales jobs, counter offer email template, sales offer letter checklist, commission clawback in the UK.
Related guides
Salary negotiation scripts
A phone script, replies for "best offer" and the levers beyond base.
Free sales job tracker for Notion
A pipeline board for every application, with follow-up dates.
AE 30-60-90-day plan
A template and example goals for writing the plan, for AE roles.
Run your search like a pipeline
A Notion kit for sellers changing roles. It has a target list and a pipeline board with follow-ups due. It also has recruiter scripts, negotiation scripts and an offer calculator for year-one pay. £14, one payment, plus VAT for UK and EU buyers.
Principled Pitch is independent. Pay, quotas and hiring processes vary by company and country. General guidance, not legal, tax or financial advice.