You’ve heard of the 80/20-principle right?
Originally termed “The Pareto Principle” because Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.
Of course, the same could be said for 80% of the Mortgage Originations come from 20% of the top Originators, or 80% of home sales are made by the top 20% of agents.
You get the picture?
Well, the 80/20 rules is far more than just a handy “rule of thumb.”
It’s a clarifying filter that determines which activities to focus most of your time and energy on, which referral partners to target and pursue – even which ones to fire.
The 80/20 rule is true for many areas of your business beyond just “who makes the most sales.” It also states that:
• 80% of the sales/referrals come from 20% of the customers/partners
• 80% of the problems come from 20% of the customers
• 80% of your productivity occurs during 20% of your time (CRITICAL!)
• 20% of your customers/partners have the potential to become five times more valuable then they are right now
And so on…
To most people, the 80/20 Rule is not much more than a business buzzword.
(If they know what it is at all.)
But… those who understand its depth – and live by it – possess a secret weapon of immense power. When you understand its impact, you have the power to completely transform your business and your personal effectiveness at every level.
You will multiply the value of your time, free up important resources, and make more money than you ever have before. I know because I’ve experienced it myself. I’ve made new and totally unique discoveries about 80/20 that make it even more powerful since reading “the book.”
Which leads us to the… Book of The Month
The book is written by Richard Koch a former management consultant, successful investor and author of over 20 books. The 80/20 Principle has been named by GQ Magazine “one of the top 25 business books of all time.” It ranks right up there with Michael Gerber’s The E-Myth and many other classics.
You can achieve more in your business in less time. IF you know how to identify the critical, revenue producing activities – and the ones you’re particularly good at – the more profitable customers and referral partners – and maximize those opportunities vs. getting pulled into the myriad of low payoff tasks and people who drain your productivity, your precious time and your bank account.
Your thoughts or comments?