[PDF] 70/30 compensation plan

For example, a 70/30 pay mix means that 70% of the total on-target earning is fixed base salary, and 30% of the total on-target earning is variable commission.
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  • What does OTE 70 30 mean?

    For example, a salesperson with a pay mix of 50/50 (50% base salary and 50% variable pay) may have an OTE of $100,000, while a salesperson with a pay mix of 70/30 (70% base salary and 30% variable pay) may have an OTE of $80,000.

  • What is the 80 20 compensation plan?

    If 80% of a rep's income is fixed compensation and paid out on a monthly basis and 20% is variable compensation paid out after each closed deal, the pay mix is 80/20. That means their base salary is $80,000 a year with the ability to earn an additional $20,000 in sales commission.

  • What is a 60 40 compensation plan?

    Pay Mix Primer
    In other words, 60/40 means 60% of TTC is base salary and 40% of TTC is the target incentive. For example, if a job has a TTC of $100,000 with a 60/40 pay mix, then the base salary would be $60,000 (60% x $100,000) and the target incentive would be $40,000 (40% x $100,000).
  • Rule 1: 50/50 split between base salary and commission. When looking at OTE (On-Target Earnings), the majority of compensation plans have half a rep's earnings being base salary and the other half being commission. While there are exceptions, this is the standard rule of thumb.
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