How to apply the 8020 rule to affiliate marketing

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If you haven't heard of the 80/20 rule, it just states that eighty percent of your output will come from twenty percent of your effort. Also known as the Pareto Law or Pareto Principle, it bares the name of the man who discovered it, Italian economist Vilfredo Pareto. While studying the population and wealth of Italy he noticed that twenty percent of the population owned eighty percent of the land. He then studied other countries and found that a similar distribution existed. Since then, the principle has applied to other areas of life such as business and sports helping to increase production and reduce wastes.

The following is how the 80/20 rule can be applied to affiliate marketing.

Production

Eighty percent of production will come from twenty of affiliates. One of the most important applications of the rule is that much of the production from your affiliate program will come from a small percentage of your team members. You can study your most successful members to determine what they have in common and, what the top affiliates do differently from one another. These practices can then be shared with the rest of the team so they can learn ways of becoming successful.

Problems

Eighty percent of problems will come from twenty percent of your affiliates. One thing we should all keep in mind is that the art of working with people carries much weight in affiliate marketing. You may find you occasionally come into conflict with some members of your team because personality differences, cultures, etc. If you study the sources of these conflicts, you will most likely find that the overwhelming majority of them come from a small percentage of the team. Then you can determine whether these affiliates are worth the trouble based on their production.

Marketing

Eighty percent of your response will come from twenty percent of your marketing. It is a common practice in affiliate marketing for marketers to reduce their efforts on ads that are not performing well to focus on those that are producing. In most businesses, the bulk of the response you receive comes from a minority of your marketing efforts. So, since marketing is all about generating profits, ads and marketing methods that are not producing results can be done away with and replaced by those that are currently producing.

Sales

Finally, eighty percent of your sales will come from twenty percent of your products. If you are offering many goods or services, you will probably find that a few of them account for the apparent majority of your sales. It may be a good idea to eliminate the unpopular items and used the time to expand sales of the most popular offerings.

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Recent Comments

2

Hi,

This is great information and I want to thank you for sharing this with the WA community.

What you say makes sense.

Best wishes,

George

Thank you.

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Create Your Free Wealthy Affiliate Account Today!
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4-Steps to Success Class
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One Profit Ready Website
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Market Research & Analysis Tools
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Millionaire Mentorship
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Core “Business Start Up” Training