- Quota
- A specific revenue or activity target assigned to a salesperson for a defined period β typically monthly, quarterly, or annually.
- Territory
- The defined geographic area, named accounts, or vertical segment a sales executive is exclusively or primarily responsible for developing.
- OTE (On-Target Earnings)
- The total expected compensation β base salary plus full commission β when a sales executive achieves 100% of their quota.
- Commission Plan
- A documented schedule specifying how and when commission is earned, calculated, and paid based on closed revenue or other sales metrics.
- Clawback Provision
- A clause requiring a salesperson to return previously paid commission if a customer cancels, defaults, or is refunded within a defined period.
- Non-Solicitation Clause
- A restriction preventing a departing employee from poaching the employer's customers or colleagues for a defined period after leaving.
- Pipeline
- A structured list of active sales opportunities at various stages of the buying process, used to forecast future revenue.
- KPI (Key Performance Indicator)
- A measurable metric used to evaluate whether a sales executive is performing in line with role expectations β such as calls made, meetings booked, or revenue closed.
- CRM (Customer Relationship Management)
- Software used to track customer interactions, manage pipeline, log activities, and report sales performance.
- FLSA Exempt
- A US classification for employees not entitled to overtime pay, typically applied to salaried outside sales roles that meet specific Department of Labor criteria.
- Draw Against Commission
- An advance on anticipated commission paid during ramp-up periods, which the employee must repay if subsequent earnings do not cover the amount drawn.