OTE splits explained: 50/50 vs 60/40 vs 70/30 in sales

An OTE split is the share of a salesperson's on-target earnings paid as fixed base salary versus variable commission. A 50/50 split is the norm for new-business account executives, 60/40 is common for enterprise, strategic and some leadership roles, and 70/30 or richer in base suits SDRs, sales leaders and roles where the individual controls less of the outcome.

The split looks like a small detail in an offer letter, but it decides how much risk you carry, how your pay moves when the market turns, and what behaviour the company is really paying for. This guide explains the OTE split in plain terms, shows the maths at different attainment levels, and gives 2026 pay ranges for the roles where each split is common, for both the UK and US.

Which roles use which OTE split?

The general rule: the more directly an individual controls the result, and the shorter and more measurable the sales cycle, the more of their pay is variable. Where outcomes depend on teams, long cycles or relationships that are hard to attribute, base takes a bigger share. Indicative norms from our 2026 salary guide:

The data behind these norms: The Bridge Group's 2024 AE benchmark found a median split of 53:47 for US account executives, on a median OTE of $190k, and its 2025 SDR report found a median of 68:32 ($55k base and $25k variable on $80k OTE). Our guide's pay mix notes for each role are in the salary guide.

What does a 50/50 vs 60/40 vs 70/30 split actually pay?

Take a hypothetical UK mid-market AE with an OTE of £120k, which sits within our 2026 London range of £110k–£145k. Assume commission is paid in a straight line up to 100% of quota and at 1.5 times the normal rate above it (an accelerator), with no cap. These assumptions are illustrative; real plans vary.

Three things stand out. At target every split pays the same. Below target, a richer base protects you: at 50% attainment the 70/30 rep earns £12k more than the 50/50 rep. Above target, a bigger variable pays more: at 150% the 50/50 rep earns £18k more. The split is a bet on how likely you are to beat your number.

How do you choose the right split as an employer?

Start with the behaviour you need, then check it against the market. These factors push the split towards more variable (50/50) or more base (70/30):

Avoid the trap of copying a split without the context. Moving an enterprise team with nine-month cycles to 50/50 to "drive urgency" often creates the opposite: reps chase small, quick deals and neglect the large ones that make the year. Equally, putting new-business hunters on 70/30 to save cost in a downturn tends to keep the comfortable performers and lose the best.

How does the split relate to quota and commission rate?

The split sets how much variable is at stake; the quota sets how hard it is to earn. Healthy SaaS plans set annual quota at roughly 4–6 times OTE, according to the analysis in our salary guide. The Bridge Group's 2024 medians, a $800k quota on a $190k OTE, give a ratio of about 4.2 times.

That last step matters. Ebsta's 2024 benchmarks found 75% of reps missed quota in the second quarter of 2024, and The Bridge Group's 2025 SDR report found only 60% of SDRs at quota. OTE is a promise only when a reasonable share of the team achieves it. Ask the question in every interview.

How does the split work in practice for SDRs and enterprise AEs?

The split is easiest to understand at the two ends of the sales team. Both examples below are hypothetical and use figures inside our 2026 London ranges.

An SDR on a £50k OTE at 70/30 has a £35k base and £15k of variable at target. If the plan pays on opportunities accepted by an AE, with a target of eight a month, each accepted opportunity is worth about £156 (£15k ÷ 96). Variable is usually paid monthly or quarterly, because SDRs need fast feedback and cannot wait for deals to close. Many plans add a small bonus when a sourced opportunity becomes a closed deal, to reward quality.

An enterprise AE might be offered £190k OTE at 50/50 (£95k base and £95k variable) or £175k OTE at 60/40 (£105k base and £70k variable). With a quota of £950k, five times the 50/50 OTE, the 50/50 plan pays a 10% commission rate. If the AE expects to close two or three large deals a year, the 60/40 offer gives more income security in a year when one deal slips into the next financial year; the 50/50 offer pays more if all three land. Many enterprise sellers prefer the higher base and negotiate for strong accelerators instead.

How should the split change as a career progresses?

A typical path runs from 70/30 as an SDR, to 50/50 as an AE, then back towards 60/40 or 70/30 as a manager and leader, with equity growing in importance at VP and CRO level. The return to a richer base is not a reward for seniority; it reflects that leaders' results depend on hiring, coaching and the work of others. Founders who put a first-line sales manager on 50/50 tied only to their own deals often find the manager keeps selling and stops managing.

For individual contributors who move from AE into customer success, account management or solutions engineering, expect more base and less variable. Compare total expected earnings at realistic attainment, not OTE, when you weigh the move.

Should you change the split when the market tightens?

When pipeline dries up, two opposite pressures appear. Finance wants more variable, so cost falls automatically with bookings. Reps want more base, because quota becomes harder to reach. Changing the split mid-year rarely solves either problem and damages trust. Better levers are adjusting quota to the pipeline that actually exists, adding a temporary guaranteed portion of variable, or introducing spiffs (short, specific incentives) for the behaviour you need, such as multi-year deals or new logos in a priority segment. Revisit the split at the annual plan, with data on attainment from the previous year.

What else in the plan matters as much as the split?

• Accelerators: higher rates above 100%. Without them, top performers are paid the same rate on their best deals as on their first.
• Decelerators and thresholds: some plans pay a lower rate, or nothing, below a threshold such as 50% of quota. Check where the threshold sits.
• Caps: a ceiling on earnings. Uncapped plans are the norm for new-business AEs; caps are a warning sign unless they sit far above target.
• Booking vs cash: more companies now pay commission when cash is collected rather than when the contract is signed. That can delay pay by months on annual-in-arrears or quarterly billing.
• Multi-year deals: some plans pay only on the first year's value, or pay a reduced rate on later years.
• Clawbacks: commission returned if a customer cancels or fails to pay within a set period.
• Ramp and draws: new hires usually get a reduced quota or a guaranteed draw for their first months. Check whether a draw is recoverable (repaid from future commission) or non-recoverable.
• Territory and pipeline: an inherited book with existing pipeline is worth far more than a greenfield patch with the same OTE.

What should a written commission plan include?

Whatever the split, the plan document should let a rep calculate their own pay without asking finance. As a minimum, it should state:

• Base salary, OTE and the split, plus the plan period and payment frequency.
• The quota, the measure it is based on (new ARR, total contract value, gross margin) and the earning event (signature, invoice or cash).
• Commission rates below and above 100%, any thresholds, accelerators and caps, with a worked example.
• Rules for splits between reps, house accounts, multi-year deals, discounts and clawbacks.
• What happens to earned and unearned commission when someone leaves, and how disputes are resolved.

A rep should sign to confirm receipt. In California that is a legal requirement; everywhere else it is simply good practice.

What are the 2026 pay ranges for each split?

Indicative ranges from the TRG GTM Salary Guide 2026 (thousands; base / OTE). Use the full salary guide for every level and location adjustments.

See role-specific pages for account executives, SDRs and enterprise sellers.

Are there UK and US differences to watch?

The headline norm, 50/50 for AEs, is the same in both markets. The differences are in size and law. US OTEs for the same role are typically well above London figures in pound terms, and US plans more often include equity for senior individual contributors.

On the legal side, California has required commission agreements to be in writing, with a signed copy given to the employee, since January 2013 (Labor Code section 2751). Several US states and cities also require pay ranges in job adverts, and California's guidance asks employers to include the commission range where pay is based on commission. In the UK, case law has established that regular commission should be reflected in holiday pay for at least part of statutory leave, so employers need payroll set up for it. None of this is legal advice; take advice before rolling out a new plan.

How should a candidate judge an OTE offer?

If you would rather discuss an offer with someone who sees many plans, register with us and a consultant will talk you through it. Hiring managers designing a plan can brief us for market benchmarks.