Thursday, October 29, 2026

Jim Collins found that companies which broke away from average performance could name, with brutal precision, what they could be best in the world at. Here's the three-circle test and the goal that pairs with it.

Walk into most SME sales reviews in the final week of any month and you'll hear the same phrase: "I can get this one over the line if I knock ten percent off." It sounds like good instinct — closing the deal, hitting the number. It's usually the single most expensive habit a sales team has.

A study by InsideSales Labs, examining 9.8 million sales opportunities across 151 companies over nine quarters, found reps close 2.9 times more deals in the final days of a quarter — and lose 11.4 times more margin doing it, with win rates falling by more than 12 percentage points against the rest of the month. The researchers put the average cost to a single company at roughly $98 million a year in lost revenue. Separately, a Bessemer Venture Partners survey found 73% of SaaS executives admit to offering steeper discounts specifically toward the end of a reporting period to hit their numbers (that figure comes with no published sample size, so treat it as directional). Scale the dollar figure down to SME size and the behaviour is identical.

I've built and reviewed commission plans across nine businesses of my own and in coaching 200+ businesses one-on-one across 30+ industries. The pattern is always the same: show me a team that discounts heavily at month-end, and I'll show you a commission plan that pays the same bonus whether the deal closed at full price or twenty percent off.

The Enemy Isn't the Rep. It's the Plan You Wrote.

Most owners assume a team that discounts too much has a training problem or a confidence problem. Usually it has neither. It has a plan that pays purely on revenue booked, with no reference at all to the margin that revenue actually carries. A rep paid the same commission on a full-price deal and a heavily discounted one is behaving entirely rationally when they discount to close faster — the plan is simply telling them, in the clearest language a business ever speaks, that margin doesn't matter.

Three Changes That Fix the Incentive, Not Just the Behaviour

  • Pay on gross margin, not gross revenue. Even a simple tiered structure — full commission at list price, a reduced rate below an agreed discount floor — changes the maths on every deal a rep is about to close.
  • Set a discount floor that needs a second signature. Not a ban on discounting — a speed bump that forces a conscious decision instead of a reflex.
  • Put margin on the same weekly scoreboard as deals closed. What gets measured in public gets managed. If margin stays invisible, it stays optional.

"Kevin is an absolute powerhouse! He doubled our business's profits in the first month alone with lots more of his recommendations still to be rolled out."

— Curtis Hacon, Give A Sh!t

Why Owners Who Know This Still Haven't Fixed It

Rewriting a commission plan feels like picking a fight with the exact people responsible for this month's revenue, at the exact moment you can least afford a dip in morale. So the plan survives another quarter, and another. An outside adviser can design and defend the change without it reading as a personal attack on the team that built your current number — usually the difference between a plan that actually gets fixed and one that gets talked about for another year.

Key Takeaways

  • Treat month-end discounting as a design problem in your commission plan, not a discipline problem in your team.
  • Note that one major study found reps close 2.9x more deals and lose 11.4x more margin in the final days of a period.
  • Pay commission on margin, with a real discount floor that needs a second signature.
  • Make margin visible on the same scoreboard the team sees every week.

If your best reps are also your biggest discounters, that's not a coincidence — and it's the first thing we fix.

Sunday, October 04, 2026

Most SME strategies are really just revenue wishlists with no diagnosis behind them. Here is the three-part test that separates a real strategy from a wish, and what to fix first if yours fails it.

Wednesday, September 30, 2026

94% of small businesses using AI across multiple functions have cut spending on marketing, data and bookkeeping, and they are more confident than ever. Here is the three-question audit to run before you cut judgment along with the invoice.

Wednesday, September 30, 2026

Chasing a poor-fit customer to hit a year-end number rarely pays off. Here is the Right-Fit Growth Filter SME owners use before saying yes.

Wednesday, September 30, 2026

High satisfaction with your business coach does not guarantee progress. Here is the yearly Re-Contracting Conversation that keeps coaching sharp.

Wednesday, September 30, 2026

We'll sort it in the new year is quietly stalling more small businesses than any competitor. Here is the Now-or-January Test that fixes it.

Wednesday, September 30, 2026

A 10 percent discount can need 46 percent more sales volume just to break even. Here is the Quota-Protection Plan for small business sales teams.

Wednesday, September 30, 2026

Referred customers buy four times more often, yet most happy customers are never asked. Here is the Post-Purchase Sequence that fixes it.

Wednesday, September 30, 2026

Your best quarter can hide the same problems as your worst one. Here is the five-step Success Audit SME owners use to pressure-test growth before it plateaus.

Wednesday, September 30, 2026

You just gave someone a raise to keep them, and they left anyway. A new US survey shows a 21-point gap between what owners think keeps their team and what actually does.

Wednesday, September 30, 2026

Small Business Saturday falls just 27 days before Christmas this year, one of the shortest holiday windows in years. Here's the three-step margin check to run before Q4 locks in your pricing mistakes.

Wednesday, September 30, 2026

Acquiring a new customer costs five to seven times more than growing revenue from an existing one. Here is the share-of-wallet audit that finds it.

Wednesday, September 30, 2026

Most coaches say yes to everyone who can pay them. Here is the real test for whether a business coach is actually right for your business.

Wednesday, September 30, 2026

The average knowledge worker gets barely an hour of uninterrupted time a day. Here is the meeting-free day protocol that gives your team room to think.

Wednesday, September 30, 2026

A verbal yes is not a closed deal, and more than 40 percent of B2B deals stall in the gap between agreement and signature. Here is how to close it.

Wednesday, September 30, 2026

Ninety percent of blog content gets zero traffic from Google, and most SME blogs are no exception. Here is the content-market fit audit that fixes it.