Everyone loves a $350K+ OTE… until they realize it’s mostly fiction. I’ve spent the last year mulling on a solution.
No April Fools joke here. I'm dead serious.
Here's the dirty secret with OTE (on track earnings) assumes you hit 100% of quota.
Let's say a company offers you $300 OTE.
Your Base Salary - $150K
Your Variable - $150K
But at this company - less than 28% of reps hit 100% of goal, meaning they don't see that $150K in variable.
The average rep may take home $210,000, when they expected $300,000.
Here's what SaaS needs to adopt: Median Earnings Attainment Number (MEAN)
Not what reps COULD earn if they hit 100%.
What reps ACTUALLY earned last year.
Publish it by segment:
→ SMB AE: $142K MEAN
→ MM AE: $183K MEAN
→ ENT AE: $267K MEAN
This would:
✔ End the fake OTE inflation game
✔ Give candidates real earning expectations
✔ Force companies to be honest about attainment
✔ Help sellers make informed career decisions
Until then, always ask in interviews:
"What % of reps hit 100% of quota last year?"
"Can you show me the attainment distribution?"
"What did the median rep actually earn?"
Who'd be onboard with this?
@Delta@AmericanExpress have you reconsidered an MQD rollover yet? With almost half the year left, I’m forced to move all my spend away from the Delta Amex because there’s no rollover! Seems silly to disincentive customer loyalty.