How to Evaluate a FinTech Sales Offer: Salary, OTE and Commission

Offer A gives you £16,000 more in base salary. Offer B can make up that gap if its pipeline converts into commission. If you receive £20,000 in commission from Offer A in your first year, you would need £36,000 from Offer B to match its £116,000 in gross pay, assuming a full year on the stated base salaries.

That gives you a specific question to take into the offer conversation. What would I need to close to receive £36,000 in commission in my first year, and which opportunities could realistically get me there?

Check what you will have to work with

If you’re inheriting a pipeline, ask to walk through representative opportunities. Which have a confirmed budget? Which have a decision-maker involved? For sales into banks or other large financial institutions, where are those deals in procurement, security review and legal? An opportunity described as qualified may still have several stages to clear before signing.

If you’re building a territory, ask how long comparable hires took to close their first deal and what support they had from pre-sales and marketing. Find out when your full quota starts and how commission works during ramp-up. Ask the employer to show how a reduced quota affects both your target and your payout.

For either offer, ask what proportion of comparable hires hit their first-year quota and what they earned. An anonymised range can help you assess the package. If the territory, product or targets have changed, ask how that affects the comparison.

Follow a deal from signature to payday

Ask the hiring manager to take a representative deal and show what it contributes to quota, how much commission it generates and when you would receive it.

Start with what counts towards quota. A three-year software contract worth £300,000 might count as £100,000 if the plan credits annual contract value and the fees are spread evenly across three years. Another plan might credit the full contract value. Ask how new business, expansion and renewals are treated, and whether credit is shared with another seller. Then check whether commission is calculated on the same amount credited towards quota.

Next, check what triggers payment. If a client signs in month 10 and pays in month 13, commission tied to signature could reach payroll in year one. Commission tied to client payment would become eligible in year two. Ask whether invoicing or implementation milestones affect timing, and whether commission can be reclaimed if the client cancels or fails to pay.

Work through earnings below and above target

Ask the employer to model pay at 75%, 100% and 120% of quota. These examples should show where commission starts, how it scales and whether it is capped. Then move one significant deal into the following quarter. Would that change how much you earn, when you receive it, or both?

Check whether the variable element is contractual commission, a performance bonus or a discretionary bonus. Ask which conditions determine the payout and where those conditions are documented.

A draw can provide variable income during ramp-up. A recoverable draw is an advance against future commission. If you receive a £3,000 advance and later earn £5,000 in commission, the plan may deduct the advance and pay the remaining £2,000. A non-recoverable draw generally provides a minimum level of variable pay for an agreed period without carrying a shortfall forward. Confirm the terms, how long it lasts and what happens to any outstanding balance if you leave.

An accelerator increases your commission rate once you reach a specified level of attainment. Ask whether the higher rate applies only to sales above that threshold or also recalculates commission on earlier sales. Have the employer include it in the example at 120% of quota.

Get the written commission plan before accepting and check that it reflects the examples you have discussed.

Decide which package fits you

Start with the income you need to be able to count on. Then compare what each offer could pay in a slower first year and what it could pay if the pipeline develops as expected. Record which assumptions the employer can support with results from comparable hires.

A higher base may give you the room you need to build a territory through a long sales cycle. A lower base may be worth considering if the pipeline is credible, the quota reflects the time it takes to close and the commission plan rewards the deals you’re likely to bring in.

If year one includes a reduced quota or a draw, ask for a year-two example as well. If equity is part of the offer, assess its terms and potential value separately from the cash you need to receive each month.