Today, I want talk about the concept of the 80/20 rule. It’s no maths, I’m not a big fan of maths, but I like know web statistics like pageviews, split testing, unique visitors, impressions, conversion rates, etc.
One of best things about the 80/20 rule is that you don’t have need of economics knowledge or be a economics professors to understand it.
I wanted to write this article because I was reading a copy of Living The 80/20 Way by Richard Koch. Koch took the 80/20 Rule and made it his own by writing a series of books on the topic.
Often, I throught of being lazy because I don’t work hard enough, but I realized that I was living an 80/20 lifestyle being a lot more productive, than the working I do.
What Is The 80/20 Rule?
Exactly, it means that 80 percent of your outcomes come from 20 percent of your activities. This “rule” holds true, in a very rough sense, to an 80/20 ratio, however in many cases the ratio can be a lot higher.
Here’s what the Wikipedia has to say about it:
The principle was suggested by management thinker Joseph M. Juran. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The assumption is that most of the results in any situation are determined by a small number of causes.
In brief, ours life is subdivided in activities we do for the 20 percent of ours time while the remaining 80 percent is dedicated ours amusement and relax.
You may also think that 20 percent of your activities produce 80 percent of your financial rewards and that is true, you can definitely apply the 80/20 Rule to most aspects of your business, but in the end is always focalized to bring to your well being.
My life is full of examples of 80/20 ratios. I spend about from 3-to-5 hours per day to writing.
In business, finding the 80/20 ratios is important for maximizing performance.
With blogging I learned that there are a little of activities that I do every day that produce the most results.
But there is part of my time is spent working bad doing activities that no produces. This often occurs when I am tired or below peak physical condition.
The customers provide 80 percent of the value(when they become longterm users) but only represent 20 percent of the overall people that use the business.
My aim is to determine the best way to attract and convert more customers into longterm users. Find the products or services that generate the most income (the 20 percent) and drop the rest (the 80 percent) that only provide marginal benefits.
