Sales Commission Schemes & OTE Explained
- Base, OTE, accelerators and draws explained
- Worked examples of how commission really pays
- How to evaluate any sales offer
In sales, your pay packet is a machine with moving parts — and understanding how it is built is the difference between accepting a great offer and a disappointing one. Two roles with the same headline OTE can pay wildly differently in practice. This guide explains how UK sales commission and on-target earnings actually work in 2026, the mechanics that change everything, and how to evaluate a scheme before you sign.
In this guide
Three terms underpin every sales package. Base salary is your fixed, guaranteed pay. Variable (commission or bonus) is the performance-related element. On-target earnings (OTE) is base plus the variable you earn if you hit 100% of quota — no more, no less. The relationship between base and variable is described by the OTE multiplier: a £50K base with £50K of on-target variable is a 2× OTE, or a 50/50 split.
Our 2026 UK Sales Salary Guide found that UK sales reward falls into just four broad structures, from near-50/50 variable in SaaS to base-led discretionary bonus in professional-services B2B. A London SaaS account executive’s variable pay roughly equals base — an OTE multiplier of about 1.91× at mid-IC level — while entry-level prospecting roles are deliberately base-heavy at 1.4–1.6×. At the most aggressive end, aesthetics patient coordinators in healthcare can earn commission worth 80–120% of base. Which structure you are on tells you how much of your income is at risk — and how much upside you control.
Two schemes with identical OTE can behave completely differently depending on these levers:
OTE is a target, not a guarantee. Across the UK only about 54.8% of account managers and 66% of SDRs actually hit quota (RepVue). Before you value an offer on its OTE, ask what proportion of the team genuinely achieves it — a realistic plan that most people hit is worth more than a dazzling OTE almost nobody reaches.
The figures below are illustrative only — they show the mechanics, not a market benchmark. Imagine an account executive on a £45,000 base with a £45,000 on-target variable (a 2×, 50/50 plan) and an annual quota of £500,000 in new revenue. The commission rate is therefore about 9% of revenue at target. Hit £500,000 and you earn the full £45,000 variable, taking total pay to £90,000. Land £600,000 and, if the plan pays a 1.5× accelerator above target, that final £100,000 earns commission at roughly 13.5% — about £13,500 — lifting you above OTE. Miss at £350,000 and, with a 50% threshold, you would earn variable only on the portion above the threshold. Same headline OTE; very different outcomes — which is exactly why the mechanics matter.
Before accepting any sales role, get clear answers to a short list of questions: What percentage of the team hit OTE last year? Is the plan capped? Are there accelerators above target, and at what rate? Is there a ramp or guarantee while I get started? What are the clawback terms? How is quota set, and how often does the plan change? And who owns the account after the sale — do I keep earning on it? Vague or evasive answers are themselves an answer. For where the pay sits across roles and sectors, cross-check the 2026 salary statistics.
Be wary of commission-only roles unless the lead supply and earning mechanics are genuinely exceptional; plans that change frequently or mid-year, which often signal targets being moved away from you; “uncapped” language that hides an effective cap through quota inflation; and undefined terms like “discretionary” bonus with no objective trigger. A good employer is happy to explain exactly how you get paid.
On-target earnings — your total pay (base plus variable) if you achieve 100% of your sales target. It is a projection, not a guaranteed salary.
No. Only the base is guaranteed; the variable element depends on hitting quota, and most schemes pay more or less depending on performance. Across the UK market, only around half to two-thirds of reps hit quota in a given period.
It depends on the role. Closing roles often run around 2× (a 50/50 split); base-heavy roles such as entry-level or some field positions sit lower, around 1.4–1.6×. A lower multiplier means more guaranteed income; a higher one means more upside and more risk.
A higher commission rate that kicks in once you exceed 100% of quota, rewarding over-performance. Plans with strong accelerators and no cap offer the most upside.
A clause that lets the employer reclaim commission already paid if a deal is cancelled or a customer churns within a set period. Always check the window and the conditions.
It depends on your risk appetite and how achievable the target is. A higher base is safer; a higher OTE rewards performance but only if the quota is realistically attainable — which is why the attainment rate is the number to ask about.
Browse live sales roles, or use our 2026 salary guide to benchmark the package — then send us your CV and we will help you read the fine print.
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