What’s the relationship between OTE and quota for a SaaS salesperson?

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JASON LEMKIN

Ideally quota is from 4x-6x OTE (i.e., salary + target bonus), depending on how big the deal size is.

  • A rep working on $5k-$10k deals often can close about $400k-$450k a year.
  • A rep working on $20k-$40k deals often can close about $600k-$800k a year.
  • A field rep hunting “Big Deals” (six figures and up exclusively) usually has a quota of $1.5m and up.

Divide those numbers by 4x or so on the low end, 5x-6x on the high end, and you back into a market-correct OTE.

You can push as low as 4x for SMB deals if there are a ton of inbound leads. But that multiple is too low for bigger deals, especially if the cost of marketing, support, onboarding, etc. is high.

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Published on October 2, 2017
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