Skip to comments.Pareto Principle: How To Use It To Dramatically Grow Your Business (80/20 Rule)
Posted on 02/01/2014 11:51:31 AM PST by 2ndDivisionVet
The Pareto Principle is very simple, yet very important. It is named after Italian economist Vilfredo Pareto, who, in 1906, found that 80% of the land in Italy was owned by 20% of the population.
What was most important about Paretos finding was that this 80/20 distribution occurs extremely frequently. For example, in general, 20% of your customers represent 80% of your sales. And 20% of your time produces 80% of your results. And so on.
The Pareto Principle, or 80/20 Rule as it is frequently called today, is an incredible tool for growing your business. For instance, if you can figure out which 20% of your time produces 80% of your business results, you can spend more time on those activities and less time on others. Likewise, by identifying the characteristics of the top 20% of your customers (who represent 80% of your sales), you can find more customers like them and dramatically grow your sales and profits.
Now while the Pareto Principle or 80/20 Rule has been used by savvy business owners and executives for years, a recent and unique interpretation of the principle has taken its importance and power to a whole new level. I learned about this innovative interpretation in Perry Marshalls incredible new book, 80/20 Sales and Marketing.
(Excerpt) Read more at forbes.com ...
20% of politicians cause 80% of our problems.
So could 20 percent of the population (wholly consisting of non-leftists) regain 80 percent of the lost freedoms of the country?
If properly motivated, yes.
But... if I spend MORE than 20% of my time on that stuff, then it's not part of the 20% anymore- it's part of the 80%, so it's not as profitable.
It’s an iterative process. You have to constantly reevaluate, and adjust.
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20% of the U.S. population consume 80% of our tax dollars.
More like 100% per cent of the politicians cause 100% of the problems.
And they give the rest a bad name...
The America revolution was one with 3% of the population; likely within the margin of error of 4% estimate.
Politicians will take 100% of your money, spend 200% of it and convince us that they balanced the budget.