The 80/20 Rule or the Pareto Principle as it’s also known, is a much talked about idea among business people and especially internet entrepreneurs.

If you haven’t heard of it then basically it says that “80% of the results come from 20% of the causes”.

This idea came about after Mr. Pareto (an Italian economist) noticed that 80% of Italy’s land was owned by 20% of the population.

But in terms of running a web business, what does it really mean?

Here are some practical examples:

  • 80% of your sales will come from 20% of your clients
  • 80% of your traffic comes from 20% of sources
  • 80% of the perceived value of your products comes from 20% of the actual content
  • 80% of your productivity comes from 20% of your day

But here’s the thing: In my experience the 80/20 Rule should really be the 95/5 rule!

I admit “95/5 Rule” doesn’t perhaps sound as good but I’ve been really amazed by how the results in my own business reflect this split.

For example, in all the niches I’ve been involved with 5% of the customers contribute 95% of the time spent providing customer support.

It’s the same if you have other marketers promoting your products: During a product launch I did last month 95% of the traffic came from 5% of the affiliates.


How To Take Advantage Of This

Maybe you’re sitting there reading this thinking, “But Rob, I don’t have any customers, support queries or affiliates yet!”

No problem.

In fact this was exactly my position 18 months ago. We ALL start from zero, just at different points in time.

Regardless of the stage you’re at right now, take some time out and isolate the really productive things that work for you.

It doesn’t matter whether this is learning, building websites, driving traffic, creating products, promoting affiliate offers, whatever.

The chances are these will represent 5-10% of your total activities. Next allocate much more time on these tasks and cut back on the rest.

Sounds simple, right?

Well, cutting back can be challenging as it’s often the same little details and “fine tuning” that we think (usually incorrectly) we need to get right before we can move on.

But you need to be brutal as getting better results is often not a case of doing more but simply reallocating your time away from less productive tasks and towards the actions that are really paying off!

My advice is start TODAY!

Have you noticed how it’s just the small things that can make all the difference? Do you think you can reallocate your time to achieve more? Disagree completely?! It’s all good – let me know your thoughts below and I’ll respond to every comment… 🙂

P.S. If you really want to concentrate on the 5% that matters, please click here.