How 80/20 Pareto Principle Will Skyrocket Your Success In 2016
If I told you that a big part of the effort you put into your business will not bring you a lot of results? What if I told you that there are small, specific things you do that bring you massive results? Would you believe me? You better, because that´s the gist of the Pareto Principle (Law), or the 80/20 Principle.
What is the Pareto Principle?
The law was discovered by Italian economist Vilfredo Pareto in 19th century. He realized that 80% of the wealth is distributed among 20% of the population. Let me give you a few more examples.
- There is over 1 million words in English language. However, most of our communication, about 80%, is done with just using 700-800 words, less than 1%!
- A small chunk of your clients pay you the bigger part of your revenue.
- You own a lot of clothes, yet you will wear a small selection most of the time.
Now the law is not exact in every situation, it might be 70/30, or 10/90, it doesn´t matter. What matters is that the majority of consequences come from minority of causes. The small amount of effort will bring about a lot of results.Now this law has been around for ages, yes why are not everyone taking it´s advantage? Because you need to tweak it very exactly for your niche. It involves a lot of research, testing and courage.
Let me show you I applied the 80/20 principle to myself
For example, my current goal is to share the content I produce with as many people as possible. I noticed that my Facebook account gets the most eyeballs for my videos/blogs. This is due to the fact that I have a relatively large friend network and that I am just starting to use other social media. That´s why I focus most effort in posting great value content on FB and then link to other social media from there. And I could go even deeper.
Out of all the people that watch my videos (1000-2000 people), only 5-10% ever like the video, and less than 1% comments or shares it. So if Facebook decides how many people to share the video with based on early engagement (comments, likes, shares), then I should focus mainly on the people who are engaged. How to make them even more engaged, how to attract similar people, how to show them my appreciation.
There you go, that´s Pareto Principle in a nutshell! However, now that you know it, the work only starts. You need to figure out which are the areas where your least effort brings you the most results. And then you need to do more of that and less of other, redundant stuff. How to figure that out? I could write a bunch of articles on that topic. But let us start with a simple question:
“Who are your best customers/viewers/professors, who give you the biggest portion of results/revenue/knowledge?”
Once you identify them, make sure to let them know that you appreciate it. And then get more people like that.
This is how Brian Tracy explains the 80/20 Principle:
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