Jobs & Roles with OTE's
Discussion
Does that simply mean that if there's a 16k basic & a 30/35k OTE, that then means, if you work your ass off day & night, bring in tons of sales, then & ONLY then, will you be anywhere near that amount per annum?
For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
ironictwist said:
Does that simply mean that if there's a 16k basic & a 30/35k OTE, that then means, if you work your ass off day & night, bring in tons of sales, then & ONLY then, will you be anywhere near that amount per annum?
For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
It's simple - the basic is £16k, but that is irrelevant because you only get your basic for a month or two if you are not hitting your target and then they sack you. If you hit your targets you will earn a total of £30/£35k, if you don't you'll be looking for a new job.For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
Hmmm ok...Thanks for that.
I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
BigLepton said:
ironictwist said:
Does that simply mean that if there's a 16k basic & a 30/35k OTE, that then means, if you work your ass off day & night, bring in tons of sales, then & ONLY then, will you be anywhere near that amount per annum?
For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
It's simple - the basic is £16k, but that is irrelevant because you only get your basic for a month or two if you are not hitting your target and then they sack you. If you hit your targets you will earn a total of £30/£35k, if you don't you'll be looking for a new job.For everyone else, you'll average around 20k "OTE" instead? Or have I misunderstood?
& for the love of god, who ever invented the phrase "can-do attitude" can go rot in hell
Edited by ironictwist on Tuesday 7th October 01:04
I worked in sales for more than 25 years (machine tools and then engineering software) and always had my earnings quoted this way - basic + commission + bonus = OTE. Of course the target was increased each year but could never get an answer as to what the company was intending to do to help me raise sales. One year I sold more than the year before and earnt less! When I left sales my basic was £30K, commission was 3% and a quarterly bonus of £1500 for reaching target for that quarter. An additional £1500 bonus at end of year if total target for the year was made. In total my OTE was around £45K. Company car was an Audi 1.8T Sport.
A couple of years ago I looked at becoming a car saleman, at a main dealer, and the basic was £13K!
A couple of years ago I looked at becoming a car saleman, at a main dealer, and the basic was £13K!
It's easy really. Just negotiate a 3 month guarantee (100% OTE paid to you each month because you're in just starting) and begin looking for your next job now so that in exactly 3 month's time you can start the new job with the next 3 month guarantee overlapping nicely (they'll pay you your last month's salary when you resign and send you on garden leave to get you out).
Repeat this process until you've got enough 'experience' to get a job as a sales manager, then you can hand out targets to your sales force and blame them when they don't hit them.
You will be on an objective-based target by that time so you'll still get your OTE (in fact you'll probably exceed this if you do it right) and you can sack the sales force and get your mates in.
After a few years of playing company politics, you'll be able to make all the rules and pay yourself whatever salary you like.
This is how it's worked in sales for some time now... Good luck!
Repeat this process until you've got enough 'experience' to get a job as a sales manager, then you can hand out targets to your sales force and blame them when they don't hit them.
You will be on an objective-based target by that time so you'll still get your OTE (in fact you'll probably exceed this if you do it right) and you can sack the sales force and get your mates in.
After a few years of playing company politics, you'll be able to make all the rules and pay yourself whatever salary you like.
This is how it's worked in sales for some time now... Good luck!
Glosphil said:
I worked in sales for more than 25 years (machine tools and then engineering software) and always had my earnings quoted this way - basic + commission + bonus = OTE. Of course the target was increased each year but could never get an answer as to what the company was intending to do to help me raise sales. One year I sold more than the year before and earnt less! When I left sales my basic was £30K, commission was 3% and a quarterly bonus of £1500 for reaching target for that quarter. An additional £1500 bonus at end of year if total target for the year was made. In total my OTE was around £45K. Company car was an Audi 1.8T Sport.
A couple of years ago I looked at becoming a car saleman, at a main dealer, and the basic was £13K!
What made you leave out of curiosity? & more importantly, are you glad you did?A couple of years ago I looked at becoming a car saleman, at a main dealer, and the basic was £13K!
fastfreddy said:
It's easy really. Just negotiate a 3 month guarantee (100% OTE paid to you each month because you're in just starting) and begin looking for your next job now so that in exactly 3 month's time you can start the new job with the next 3 month guarantee overlapping nicely (they'll pay you your last month's salary when you resign and send you on garden leave to get you out).
Repeat this process until you've got enough 'experience' to get a job as a sales manager, then you can hand out targets to your sales force and blame them when they don't hit them.
You will be on an objective-based target by that time so you'll still get your OTE (in fact you'll probably exceed this if you do it right) and you can sack the sales force and get your mates in.
After a few years of playing company politics, you'll be able to make all the rules and pay yourself whatever salary you like.
This is how it's worked in sales for some time now... Good luck!
Christ...You actually did it like that?!Repeat this process until you've got enough 'experience' to get a job as a sales manager, then you can hand out targets to your sales force and blame them when they don't hit them.
You will be on an objective-based target by that time so you'll still get your OTE (in fact you'll probably exceed this if you do it right) and you can sack the sales force and get your mates in.
After a few years of playing company politics, you'll be able to make all the rules and pay yourself whatever salary you like.
This is how it's worked in sales for some time now... Good luck!
ironictwist said:
Hmmm ok...Thanks for that.
I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
it depends on the industry, generally the better sales jobs (IME etc,etc, caveat ad nauseum) have a low basic, high commission which over time rises to a good basic/high commission. I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
an OTE is usually set in an job advert as the highest amount any of the sales force earnt in the last 12 months.. designed to show what is theoretically possible
... not always realistic for new starters ironictwist said:
Hmmm ok...Thanks for that.
I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
I have worked on that basis in the past and now employ sales people on a basic/OTE system. As a rule of thumb, OTE should be at least twice the basic salary up to four times. I always give my sales people the opportunity to give up the basic and go commission only - the people who can sell well usually do. A salesman with a £25k basic hitting his target with me will earn £60k per annum. A salesman selling the same thing and with the same target will earn £75k on commission only instead of basic plus comm. Don't obsess about the basic - if you can sell you won't need it and if you can't you'll get fired before the third month.I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
As for whether the OTE of a particular job is realistic - get them to prove it at interview. Ask how many of their team hit their targets and how much they actually earned by doing so. Ask to see proof as they will ask to see proof of your CV. It's a two way street.
Bear in mind that sales is one of the few jobs in the world where 80% of the people doing it aren't very good at it.
BigLepton said:
ironictwist said:
Hmmm ok...Thanks for that.
I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
I have worked on that basis in the past and now employ sales people on a basic/OTE system. As a rule of thumb, OTE should be at least twice the basic salary up to four times. I always give my sales people the opportunity to give up the basic and go commission only - the people who can sell well usually do. A salesman with a £25k basic hitting his target with me will earn £60k per annum. A salesman selling the same thing and with the same target will earn £75k on commission only instead of basic plus comm. Don't obsess about the basic - if you can sell you won't need it and if you can't you'll get fired before the third month.I always assumed a low basic meant things could be a little "dicey" but I'm starting to get the impression basics around entry level sales roles are around this sort of region with OTE's in the late 20's to mid 30's, as far the 40's. Which makes me think either folk are very optimistic on targets or there's money to be had for people wanting to work for it.
Will see...
Any PH'ers on one of these fancy OTE thingmajigs? If so, how's it working out? Especially if you're just starting out.
As for whether the OTE of a particular job is realistic - get them to prove it at interview. Ask how many of their team hit their targets and how much they actually earned by doing so. Ask to see proof as they will ask to see proof of your CV. It's a two way street.
Bear in mind that sales is one of the few jobs in the world where 80% of the people doing it aren't very good at it.
It is critical to ensure that the target is obtainable. Any employer can offer £200k OTE, but if it is impossible to close the business required to hit the target that goes with it, it is a worthless measure.
I have been on basic + commission for the whole of my working life. For me, it works well as I have very rarely missed my annual target (maybe once or twice in close to 15 years). Ensure that accelerators are in place for over-achievement & work damn hard to ensure you hit target with a month or two to go before the end of the FY so that you can get into the accelerators. You may want to "sand bag" a little bit if you are over your number so that you don't get hit with a whopping target increase the following year (effectively meaning that you take a pay cut, as every £1 you close will be worth substantially less in your pocket).
Generally, base + comm is good though. My wife & I work our finances so that we stay afloat on my basic + her salary, which means when I pick up a commission check every three months (hopefully!!), this is bunce money that pays for holidays / cars / house improvements etc
I have been on basic + commission for the whole of my working life. For me, it works well as I have very rarely missed my annual target (maybe once or twice in close to 15 years). Ensure that accelerators are in place for over-achievement & work damn hard to ensure you hit target with a month or two to go before the end of the FY so that you can get into the accelerators. You may want to "sand bag" a little bit if you are over your number so that you don't get hit with a whopping target increase the following year (effectively meaning that you take a pay cut, as every £1 you close will be worth substantially less in your pocket).
Generally, base + comm is good though. My wife & I work our finances so that we stay afloat on my basic + her salary, which means when I pick up a commission check every three months (hopefully!!), this is bunce money that pays for holidays / cars / house improvements etc
major network business will often have 50:50 structure i.e. assuming an OTE of £100k - base would be £50k. This would be for AM's and MAM's - SE's tend to be more 70:30 (base:comm).
Depending on business these would be capped or uncapped and have accelerators in certain areas of % of target.
Depending on business these would be capped or uncapped and have accelerators in certain areas of % of target.
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