You already know the basic 80/20 rule, yes? It’s not merely a “rule of thumb.” It’s a law of nature and a way of life. Its full implications are riveting, as so well presented in Perry Marshall’s book “80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More“. [affiliate link]
The principle says that a mere 20% of all the causes for a particular event will create 80% of the all the problems or effects. Example: 20% of your customers will generate 80% of your customer support issues.
Significant as that is, it’s what Perry further grasped about the principle that makes it so ground-breaking. And that is that the principle is holographic in nature (what’s true of the whole is also true of any part of the whole.)
In other words, the principle keeps applying as you delve into deeper and deeper levels of the principle.
Example: While 20% of your customers generate 80% of your customer support issues, it is also true that roughly 20% of that 20% – which is 4% – will cause 80% of 80% of the customer support issues. If you do the math, 4% of you customers will cause 64% of customer support issues. And so on.
Let’s apply it to another vital subject: marketing. If 20% of your marketing efforts produce 80% of the results, wouldn’t you like to know which 20% is doing so? That would allow you can stop spending on the 80% that isn’t producing?
Moreover, how valuable would it be to know which 20% of that 20% is producing 80% of 80% of those results? Game changer!
Think of it this way: the principle reveals that one-fifth of your customers are/will be responsible for four-fifths of your profits! How would you like to know who comprises that one-fifth group, so you can make darn sure to keep them happy. And, so you can reduce the resources you invest in the four-fifths group that is producing only 20% of your profits?
Ok, that’s my best shot at trying to illustrate how big the implications of this are. But Perry will wow you with his illustrations of the multitude of ways that the principle applies in your business/marketing world, let alone life.
This one principle can completly transform how you do business and life.
For those reasons, I highly recommend “80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More” [affiliate link].
“Why You Usually See Three-Tiered Service Pricing”