Tech sales compensation has more levers than most candidates realize. Understanding them gives you negotiating power.
Understanding the Components
**Base Salary:** Guaranteed pay regardless of performance.
**Variable/Commission:** Performance-based pay tied to quota attainment.
**OTE (On-Target Earnings):** Base + Variable assuming 100% quota attainment.
**Accelerators:** Higher commission rates for performance above quota.
**Equity:** Stock options or RSUs, more common at startups.
The Base-to-Variable Split
Typical splits by role:
Higher base = more stability. Higher variable = more upside.
When to Negotiate
**SDR roles:** Limited room. Most companies have standardized comp bands. Focus on start date or title if anything.
**AE roles:** More flexibility, especially on base salary and signing bonus.
**Leadership roles:** Everything is negotiable—base, OTE, equity, accelerators, guaranteed first-year earnings.
How to Negotiate
1. **Wait for the offer.** Never negotiate before they've committed.
2. **Express enthusiasm first.** "I'm really excited about this opportunity."
3. **Ask, don't demand.** "Is there flexibility on the base salary?"
4. **Use competing offers strategically.** Only mention if you actually have them.
5. **Focus on base.** It's easier to adjust than OTE restructuring.
The Quota Question
Always ask: "What was quota attainment for the team last year?"
This tells you the real OTE. A $150K OTE means nothing if only 40% of reps hit quota.
What Not to Do
The best negotiation leverage: being the candidate they can't lose.