I've been reading about the 80/20 rule in one of the current marketing books I'm reading (although it's in a gazillion books). It says you get 80% of "x" from 20% of "x". We all know this (or should). And I know it's a good rule because it tends to hold true. I get that of course.
Making money with the 80/20 rule a "logical fallacy"?
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I've been reading about the 80/20 rule in one of the current marketing books I'm reading (although it's in a gazillion books).
It says you get 80% of "x" from 20% of "x". We all know this (or should). And I know it's a good rule because it tends to hold true. I get that of course.
You make 80% of your money from 20% of your customers. It's just a loose way of categorizing information to make it more useful. And you can obviously swap out different examples.
But, am I going crazy here? Doesn't anyone else have a problem with the discrepancy?
It's comparing two sets of data. So it doesn't have to add up to 100 like it does. Why can't it be 85% of my money comes from 30% of my customers?
I know the loose rule is that in your situation it could be 75/25 or 68/32 or whatever. But why is it supposed to add up to 100?
Before you jump down my throat for over-analyzing, I know I'm nitpicking. But I just want to know if anyone else notices this? Because while maybe nobody else cares…my brain works that way.
And I don't want to feel (as) crazy (as I am).
Sure I check the lock six or seven times even though I know it's locked. (I'm getting better.) And I stop walking when I have to think seriously about something. (Wife hates it. No one can talk to me, and I have to make notes about what I'm thinking about for later before I can jump back into "real life" and keep walking.)
I've got probs.
So I'm just wondering if you noticed too. And if I've got the math wrong, it'd be a relief to know that too.
It says you get 80% of "x" from 20% of "x". We all know this (or should). And I know it's a good rule because it tends to hold true. I get that of course.
You make 80% of your money from 20% of your customers. It's just a loose way of categorizing information to make it more useful. And you can obviously swap out different examples.
But, am I going crazy here? Doesn't anyone else have a problem with the discrepancy?
It's comparing two sets of data. So it doesn't have to add up to 100 like it does. Why can't it be 85% of my money comes from 30% of my customers?
I know the loose rule is that in your situation it could be 75/25 or 68/32 or whatever. But why is it supposed to add up to 100?
Before you jump down my throat for over-analyzing, I know I'm nitpicking. But I just want to know if anyone else notices this? Because while maybe nobody else cares…my brain works that way.
And I don't want to feel (as) crazy (as I am).
Sure I check the lock six or seven times even though I know it's locked. (I'm getting better.) And I stop walking when I have to think seriously about something. (Wife hates it. No one can talk to me, and I have to make notes about what I'm thinking about for later before I can jump back into "real life" and keep walking.)
I've got probs.
So I'm just wondering if you noticed too. And if I've got the math wrong, it'd be a relief to know that too.
- Frank Donovan
- profitsforall
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