80/20 Pareto principle in IM
Posted 8th August 2008 at 02:23 PM by Andyhenry
Hi,
I've been working a lot on how to be more effective with my online business and although this is going to sound really simple, I've found using the 80/20 rule and blanket applying it to all IM related activities has worked wonders.
Here are some examples:
1 - 20 percent of my work gets me 80 of the revenue, so I've worked out where I spend my time and shifted the focus over to the elements that make the most money.
2 - 20 percent of my products make 80 of the revenue - again, trying to do everything impacted sales and just focusing on the high performers got much better results than putting the same effort into the dead ducks.
3 - 80 percent of the people taking up my time were not contributing to my efforts, but the 20 percent who were looking for a win-win arrangement were making the most difference.
4 - 20 percent of my promotional activities get 80 percent of the results - focus change to prioritise onto the best activities and don't waste time on the less effective activities.
You get the idea.
Think about it and see how it can help you.
Andy
I've been working a lot on how to be more effective with my online business and although this is going to sound really simple, I've found using the 80/20 rule and blanket applying it to all IM related activities has worked wonders.
Here are some examples:
1 - 20 percent of my work gets me 80 of the revenue, so I've worked out where I spend my time and shifted the focus over to the elements that make the most money.
2 - 20 percent of my products make 80 of the revenue - again, trying to do everything impacted sales and just focusing on the high performers got much better results than putting the same effort into the dead ducks.
3 - 80 percent of the people taking up my time were not contributing to my efforts, but the 20 percent who were looking for a win-win arrangement were making the most difference.
4 - 20 percent of my promotional activities get 80 percent of the results - focus change to prioritise onto the best activities and don't waste time on the less effective activities.
You get the idea.
Think about it and see how it can help you.
Andy
Total Comments 2
Comments
-
Hey Andy,
The rule 80/20 does work. I appreciate you taking the time to remind me. As I tend to fall away from it.
By applying this to one part of my business, I went from no income to over $1400 a month. Not a fortune but now I can leverage the 20 results into more dollars.
It's strange how we get something working and then instead of really focusing on it we either settle for what we have from it or decide we want to try something more exciting.
Folks if you can't tell I know what Andy has written really works. You need to try it.
Thanks Andy for a good post.
Ken LeathermanPosted 10th August 2008 at 08:57 AM by Ken Leatherman
- Hey Andy,
Thanks for highlighting this. It's so true. The tough part is letting that 80% of your customers that waste your time go, or identifying that 80% that doesn't help you earn profits.
Cutting the fat, yet taking care of the necessities can be tricky. For example, today I realized I needed to put an earnings disclaimer on one of my sites. Is that going to make me money? No, but it is something that needs to be done.
As a business owner that's the stuff I suppose you should delegate out in order to focus on the things that truly impact growth.
Ryan TaylorPosted 15th August 2008 at 12:14 PM by Ryan_Taylor
