Quota-to-OTE Ratio
Quota divided by on-target earnings — how much revenue a seller must produce per unit of their own cost.
What it governs
It is the sanity check on whether the sales model can be profitable. Too low and the motion cannot carry its own cost; too high and the quota is unachievable, which shows up as attrition rather than as a planning error.
Check it against attainment
RELATED TERMS
Capacity Planning
Translating a revenue target into the number of productive selling resources required to hit it, accounting for ramp, attrition and expected attainment.
Compensation Plan
The document defining how a seller earns variable pay: what is measured, at what rates, with what accelerators, caps and clawbacks.
On-Target Earnings (OTE)
Total expected compensation when a seller hits quota exactly: base salary plus target variable.
Quota
The revenue target assigned to an individual rep for a period. The most consequential number in a seller's working life, and the mechanism translating a company target into individual accountability.
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