Business, Legal & Accounting Glossary
On target earnings.
OTE is the earnings that you will receive if you meet your targets.
Often companies will offer OTE (on-target earnings) if an employee has sales targets to meet.
OTE is on target or on track earnings.
This is a term that will often be found in an advertisement for a job, especially when the advertisement is recruiting salespeople.
There will be a contract between the salesperson and the company that will clarify how much commission a person will make on sales, or if they will receive a fixed lump sum. Sometimes it will contain a combination of both, a fixed lump sum and a percentage of the commission on sales made.
These will be obtainable if the salesperson meets or exceeds their targets. All commission plans will be unique to the company that you are working for, however, often it is that the further an individual exceeds their targets the higher the commission that they receive.
OTE can also be used as a definition for annual goals and targets.
OTE (on-target earnings) is used by employers to benefit their employees for their hard work. However, it should be noted that often OTE also has a positive impact on employee engagement and employee motivation. OTE is a great way to improve the productivity of your salespeople.
Account Manager/Sales Executive
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This glossary post was last updated: 2nd April, 2020