A startup offers $200K OTE with equity. An enterprise company offers $180K OTE with stability. Which is better?
Startup Comp Reality
- Higher OTE: Often 10-20% higher to compensate for risk
- Equity: Could be worth millions or nothing
- Variable comp: Often poorly defined, changes frequently
- Quota: May be unrealistic or non-existent
Enterprise Comp Reality
- Stable OTE: Predictable, well-documented
- Defined plans: Clear tiers, accelerators, policies
- Realistic quotas: Based on historical data
- Benefits: Better healthcare, 401k match, perks
The Equity Question
Startup equity math: Most startups fail. Of those that succeed, most exits are modest. The expected value of startup equity is usually much lower than people assume.
Only optimize for equity if you can afford to lose it entirely.
When to Choose Startup
- Early career, building skills fast
- Financial runway to absorb risk
- Strong belief in the company/product
- Comfortable with ambiguity
When to Choose Enterprise
- Have financial obligations (family, mortgage)
- Want structured career progression
- Value stability and work-life balance
- Prefer proven playbooks
💡 Pro tip
Do not compare startup OTE to enterprise OTE directly. Startup OTE attainment rates are often much lower.
Bottom Line
Startups offer upside and learning. Enterprise offers stability and structure. Neither is universally better.
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