IOI vs OTE
IOI (Indication Of Interest) and OTE (On-Target Earnings) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: IOI refers to indication of interest, while OTE refers to on-target earnings — they describe different things even when they show up in the same sentence.
IOI — Indication Of Interest
Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers.
OTE — On-Target Earnings
Total compensation a salesperson earns when they hit 100% of quota — base salary plus expected variable. OTE is the headline number in any sales offer and the anchor for capacity planning.
When to use IOI
Reach for "IOI" when the conversation is specifically about indication of interest. Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers.
When to use OTE
Reach for "OTE" when the conversation is specifically about on-target earnings. Total compensation a salesperson earns when they hit 100% of quota — base salary plus expected variable. OTE is the headline number in any sales offer and the anchor for capacity planning.
FAQs
What is the difference between IOI and OTE?
IOI stands for Indication Of Interest — Non-binding written expression of interest in acquiring a company, usually with a price range and key assumptions. IOIs come before LOIs and let sellers narrow the field of serious buyers. OTE stands for On-Target Earnings — Total compensation a salesperson earns when they hit 100% of quota — base salary plus expected variable. OTE is the headline number in any sales offer and the anchor for capacity planning.
Are IOI and OTE the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. IOI = Indication Of Interest. OTE = On-Target Earnings.
When should I use IOI vs OTE?
Use IOI when you're specifically referring to indication of interest. Use OTE when the topic is on-target earnings.