Pareto’s Principle is definitely one of the best, most powerful tips, techniques or principles that I’ve ever come across. I learned this one from Tim Ferris.
Tim is an absolute genius when it comes to dissecting success habits and finding way to optimize and improve efficiency. Hence his 4 New York Times Best Sellers: The 4 Hour Work Week, The 4 Hour Body, The 4 Hour Chef and his newest book Tools of The Titans.
Pareto’s Principle dictates that 80% or more of outcomes are the result of 20% of activities or inputs.
Example: 20% or less of your customers generate 80% or more of the revenue.
I used this principle in my sales job to drastically increase the amount of revenue my territory was generating. I looked at my territory and determined that 90% of the revenue was being generated by 10% of the customers. So I put the majority of my time and energy into managing that 10% and adding new accounts that were of a similar profile as my top 10% customers. Within 4 months I almost doubled the amount of revenue in my territory.
What Pareto’s Principle helps you to do is maximize results without spending more time, money etc. but by re-allocating time/money etc. on the variables that have the most impact.