Many Will Produce Little, Little Will Produce Much – The 80/20 Rule

Many Will Produce Little, Little Will Produce Much – The 80/20 Rule

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Pareto’s principle

Vilfredo Pareto, an Italian economist in the 1800s, noticed that 20% of businesses in Italy made 80% of the money. Conversely, 80% of the businesses only made 20% of the money. He looked back at the records and this statistic was true every year.

The Pareto principle doesn’t just apply to businesses. It applies to skills also. 80% of our results come from 20% of our actions in almost every endeavor. In phone messages, getting the prospect to return your call, comes from 20% of our actions.

He determined the assumption that most of the results in any situation are determined by a small number of causes. A small percent of the population controls a large percent of the wealth. He learned this in the country of Italy but it applies to any country or most situations.

In simple terms for most general situations, 80% of your results are going to come from 20% of your effort. There are certain activities that you do, 20%, that will account for the majority of your happiness, output or results.

That is the 80/20 rule.

It applies to business, not just wealth.

20% of the calls you make, will render 80% of the results of those calls. But on the flip side, 80% of the calls that you make will render 20% of the results.

20% of the customers in your contact list will produce 80% of your results. Hence 80% of the customers in your contact list are going to produce 20% of your results.

Focus on the 20% that are actually producing results. Make an effort to contact those that are not and make an attempt to bring them into the 20%. But just be aware you’re going to have a distribution of results among your contacts, among your customers. Many will produce little, little will produce much.


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