OTE stands for On-Target Earnings, which is the total amount of money a sales representative can expect to earn if they meet their performance objectives. It is a combination of fixed salary and variable income, usually given in an annual figure. The OTE is calculated by adding the annual base salary and the annual commission earned at 100% of quota. The OTE is not a guaranteed amount, but rather a way to let potential hires know approximately how much they can expect to earn if they hit their quota. The OTE is used to properly compensate or reward sales reps for hitting their quotas, and it can also increase employee engagement, motivation, and participation. The average OTE for sales reps in the United States varies per industry, region, and company, but according to Glassdoor, the average OTE for a sales representative in the United States is around $60,000 per year and ranges from $30,000 to $100,000 or more depending on the above mentioned factors.