80-20 Principle in Business
Hey, everyone!
Today I learned about the 80/20 principle.
This stands for Pareto's principle.
Getting 80% of the results from 20% of the effort.
Essentially, it's all about leverage.
It's one of the most important elements in business to understand. You can apply the 80/20 principle in each of the categories: traffic, conversions, and economics. You put less in (like spending money on advertising) but you get more out.
This being said, focus on the right things and you get 80% of the results. That's the ultimate leverage in life and business.
Interesting, isn't it?
As usual, this blog post was quickly created during my actual learning process.
Enjoy!
Recent Comments
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Awesome! I think it's possible after everything is set up and automated...too much to do and learn at the beginning...no?
or from a sales man's perspective it is said you get 80% of you business from 20% of your customers..
This is so true with so many things! I see this playing out in my blog posts...a few posts are responsible for the majority of my website views. I think it's good to look at the 20% content that gets the most traffic to learn about what's working. And then look at the other 80% to see where improvements can be made.
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I've seen the Pareto principal play out in many things. It can swing to 90/10 and 70/30 sometimes as life is full of variables. The important thing is to stay on the positive side of the equation in all practices.