Sales pay has three parts: base salary, commission, and OTE. Base salary is a safety net, typically 40 to 60% of total pay in B2B sales, meant to cover essentials, not build wealth. Commission is earned pay tied directly to revenue or margin closed, for example a 10% rate on a 100k deal pays 10k. OTE (on-target earnings) is the total you'd earn only if you hit 100% of quota, it's a promise, not a paycheck, and comp plans often include accelerators and decelerators that make partial quota attainment pay out less than a simple percentage of OTE would suggest.
Most reps don't understand their own paycheck
Sales is not just a six-figure paycheck and a LinkedIn badge. Most reps don't understand how they actually get paid, and that's why they stay broke. The reps who make real money are the ones who understand their compensation plan. The rest just show up and hope for commission.
The holy trinity of sales pay
Base salary: your safety net
Base salary is the money you make for being on the roster. In most B2B sales roles, it's 40 to 60% of total pay. It's designed to keep you afloat, not make you rich. If an AE makes 60,000 base, that should cover rent, food, and gas. That's it.
Commission: the hunter pay
Commission is where the real money is, and it's earned, not given. You get paid a percentage of the revenue or margin you close. Close nothing, get no commission. That's why a lot of people hate sales, but the ones who know how to play the game love it. Sell a 100k deal at a 10% commission rate and that's 10K in your pocket. Do that ten times and you've made 100K.
OTE: your potential, not your paycheck
OTE means on-target earnings, the total you'd earn if you hit quota. If your OTE is 150K and your base is 60K, you need to close enough to make the extra 90K in commission. OTE is a promise, not a paycheck.
This is where reps get confused. At 50% of target, you might assume you'd earn half your OTE, roughly 75K. But that's not how it works. You'd actually land around 60K base plus maybe 20K in commission, about 80K, not the 45K in commission you'd expect from a straight-line calculation of 50% of your 90K target. The reason: comp plans often have accelerators and decelerators, thresholds under which you earn less commission per dollar closed.
Common mistakes reps make
Reps don't know whether their plan has accelerators or thresholds. They don't understand clawbacks. And they ignore quota progress until it's too late to course-correct.
The takeaway
Sales is the only career where you control your income, but only if you learn how the game is played. If you want to stop living paycheck to paycheck, learn your plan, master your pipeline, and close like your income depends on it. Because it does.
Frequently asked questions
What percentage of total pay is base salary in B2B sales?
Typically 40 to 60% of total pay. It's designed to be a safety net covering essentials like rent, food, and gas, not to build wealth.
How does commission actually work?
Commission is a percentage of the revenue or margin you close. For example, a 100k deal at a 10% commission rate pays 10K. Close nothing, earn nothing, it's entirely performance-based.
What does OTE mean and is it guaranteed?
OTE stands for on-target earnings, the total you'd earn only if you hit 100% of quota. It's a promise of potential earnings, not a guaranteed paycheck. If your OTE is 150K on a 60K base, you need to close enough deals to earn the remaining 90K in commission.
Why doesn't 50% of quota attainment equal 50% of OTE?
Because comp plans often include accelerators and decelerators, thresholds where commission rates change. At 50% of target, a rep might earn base plus a smaller commission amount than a straight 50% split of OTE would suggest, landing well below the expected halfway point.
What are the most common comp plan mistakes reps make?
Not knowing whether their plan has accelerators or thresholds, not understanding how clawbacks work, and ignoring quota attainment progress until it's too late to fix.