Base, variable and OTE
OTE is the total cash earnable at 100% quota attainment, split between base salary (paid regardless) and variable (paid on achievement). The split depends on what you want the rep to optimize for. Higher variable share (40–50%) drives hunting and short-cycle deals; higher base share (60–70%) suits long-cycle enterprise where deal lengths are 6–12 months and reps need salary stability.
European 2026 benchmarks: SaaS AE OTE €80k–€140k (mid-market) / €130k–€220k (enterprise); inside sales / SDR €45k–€75k OTE; services consultant €70k–€110k OTE typically at 70/30 base/variable. Base salary alone should land somewhere in the high end of comparable non-sales roles — sales is hard, and being underpaid in base while chasing variable is demotivating.
Quota setting and the 4× rule
A reasonable annual quota for a B2B AE is 4–6× their fully-loaded cost (OTE + payroll taxes + benefits + tools + management share). Quota below 4× means the rep can't generate enough margin to justify the cost; above 6× means the role is paid below market value for the work — top performers will leave.
Distribute the annual quota by quarter, weighting toward Q2 and Q4 (historically the strongest in European B2B due to budget cycles). Avoid linear monthly quotas — they punish reps for the timing of their pipeline rather than the substance of their work. Most teams set quarterly minimums with annual catch-up.
Accelerators, claw-backs and draw
Accelerators reward over-performance. Standard structure: 1× commission rate to 100% quota, 1.5× from 100–125%, 2× above 125%. The reasoning: each marginal deal above quota costs the company nothing in extra base salary and converts more directly to profit, so the rep should share more of it. Without accelerators, top reps cap out mentally at quota and pipeline goes flat.
Claw-backs reclaim commissions on churned customers within 3–6 months — fair protection against deals signed and immediately lost. Draws (advance against commissions) help during ramp-up but should sunset within 6 months; permanent draws inflate base salary by stealth. Territory rules and account assignments need to be locked at the start of each quarter and changes documented — most sales-comp disputes are about who 'owned' a deal, not about the math.
Model your commission plan
Enter OTE, quota, accelerator structure and deal size — the EuroCalc commission calculator shows rep earnings at every attainment level and total payout cost.
Open the calculator →Frequently asked questions
Should I pay commission on new business or also on renewals?+
Reduce commission on renewals (typical: 50% of new-business rate) to avoid paying twice for the same customer. Customer success or account management teams typically own renewal compensation separately.
When should commissions be paid out?+
Most European B2B firms pay monthly on signed-and-invoiced deals, with quarterly true-ups for any disputed amounts. Avoid paying on signed-but-uninvoiced deals — it creates incentive to close anything regardless of contract validity.
How do I handle very large deals that distort a rep's year?+
Use a 'mega-deal' clause that caps individual deal contribution to quota at 50% of annual quota, or splits very large deals across multiple reps/quarters. Otherwise one whale skews everything and demotivates the next year.
Is it ever right to remove commission for a quarter?+
Almost never. Companies that change comp plans mid-quarter lose the trust of their best reps permanently. Plans should be reviewed annually with 60 days notice, never retroactively.
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