Use The 80/20 Rule To Get To The Money

12 replies
Alot of folks here on the forum are trying to figure out what the easiest ways to make money money online are and everyone's hoping someone has some sort of worth while strategy or insight that can help them avoid traps and pitfalls, right?

Well, if you use the power of 80/20 you can easily bypass hardship...and yes...I do mean easily.

See, most of the folks wrongly believe that the truth about making money online is to have big numbers and huge volume.

Although that would be ideal for most of us, the truth is one of the tenets that I've been preaching for years.

"The Value Is ALWAYS In the Minority."

What's that mean?

The most value comes from what others wish they could have but are NOT willing to reach for.

That actually makes it EASIER for those of us that ARE willing to reach for it because there's less competition.

Case in point:

Let's say one of your ways to make money is by pimping out your skills as a freelancer on one of those freelancing sites.

Now, of course there are literally HUNDREDs if not THOUSANDS of jobs available on a weekly basis with more jobs becoming available on a daily basis.

Most folks that I've coached would believe that the "low hanging" fruit is where it's at and so in order to build up your credibility you have to go for the MAJORITY low paying jobs.

Well, I skipped that program and the VERY FIRST gig I landed on one of those platforms was a $5000 writing gig.

That means I won the job without having prior feedback, 0 other awareded jobs and no real credibility to rely on, and I did it while beating out a 5 star veteran.

Why is that important?

Well, because I know for a fact it's lonely at the top and most people don't believe they have the skill set to impress someone posting a job in the $5000 and greater amounts.

That's B.S.

The truth is there is less competition at the top so all you need...the big secret to making it work for you, besides being able to actually deliver is....CONFIDENCE.

The other trick to this is that with consistent effort all you'd need to do to make good money is land higher paying gigs....and fewer of them at that.

Let me give you some numbers to consider.

Let's say you wanted to make $5000 next month.

You make a diligent effort to apply for low hanging fruit jobs in the realm of $100 to $500, right?

That means you would need to land no less than 10 $500 jobs, correct?

Let's say you tried to score gigs by being diligent at reaching out to folks everyday for a month.

You take every weekend off, which we'll say is about 8 days (2 days a week x 4 weeks).

That leaves you with 22 days to apply for jobs and land those no less than 10 $500, but that's probably not likely because you're also bidding for jobs that are in the $100 range.

By the way, that means you would need 50 $100 jobs, if those were all you were landing.

Because we're working with averages here, to keep it easy math, let's say you would need to land no less than 17 $300 jobs to reach your financial goals, ok?

In order to land 17 out of 100 job applications, that would mean you would need to convert or close, 17% of the jobs you applied for.

17%...that's freakin' unreal conversions, right?

Likely?

I don't think so, but...what do I know?

Ok, so let's contrast that with another scenario...

If you were ONLY applying for work that was between $1000 and $10,000...you could reach your same goals with just 5 $1000 jobs or by landing just 1 $5000 job.

Let's say you're just terrible at this and you don't believe you can land anything for more than $1000.

Doesn't it seem more realistic and attainable to get a 5% closing ratio, which we both know is still high, but...it's more realistic than a 17% closing rate, right?

If we were going to try and make this happen using averages, these numbers look even better.

Using averages, you'll need to close just 2 deals at $3000 a piece to reach (actually exceed) your goal.

2%...

That's like the world statistic marketing close ratio number, isn't it?

Can you see yourself closing at least 2% of your deals?

That's doable, right?

Oh, and by the way, which one sounds like a more appealing work load:

Managing 2 client projects and doing everything in your power to make sure you deliver for those 2 folks or trying to cater to 17 different people?

Which one do you think makes for a less stressful and better customer?

I can give you a hint....

Anyways, I hope this helps you see the power of 80/20 and gives you a way to see how you can use this in your marketing life.

Oh yes, and how does this apply to selling products, like here on the warrior forum?

Ever hear of the infamous OTO?

You know why those are there?

It's because, although less of them will be sold, the most money is made right there.

80/20...think about how you can leverage it in your marketing efforts.

Regards

Los
#80 or 20 #80/20 rule #freelance job #how to attract money #make money faster #money #pareto principle #rule
  • Profile picture of the author Marked09
    Great Article Los! I'm also a firm believer of 80/20 rule it changed how I view my business and in life.
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  • Profile picture of the author heruma
    You just have to choose either the 80% or the 20%.

    Those who choose the 80%
    Walmart, Microsoft, Samsung, Toyota, McDonald

    Those who choose the 20%
    Louis Vuitton, Hermes, Bentley, Apple

    Both are lucrative and both has it's own strategy.
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  • Profile picture of the author AixenPixel
    I really like the mathematical effort you put into this! Very nice
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    • Profile picture of the author focusedlife
      The 80/20 Rule is not only the rule of the few, but it's also the rule of the patient.

      We scramble to make things happen quicker in our daily lives, but the fact of the matter is you can't hurry natural progress.

      All you can do is focus on the few things that matter and be diligent about it, or, as someone here pointed it, have a strategy to deal with the frantic and more volatile majority.

      I don't like that program as much, so I'm getting better at baiting and waiting.

      Focus on the vital few is where it's at.

      Going for the masses...now that, in my opinion, that's predatory.

      Anyways, thanks all for chiming in and for the feedback.

      Regards,

      Los
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      • You made an awesome point, focusedlife. It does help keep things in perspective. One surely has more chances of succeeding where competition is not as fierce. As for being confident or building confidence, it's another matter altogether
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        • Profile picture of the author wordwizard
          I'm quite familiar with the 80/20 rule, but it isn't always easy to figure out what's what. And holding out for the $5,000 gig can be a big gamble too...

          Good concept, though I prefer to hedge my bets a BIT... at least for the time being.
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  • Profile picture of the author focusedlife
    @wordwizard - How do you hedge your bets?
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  • Profile picture of the author Odahh
    though i agree with the aim you have in this post..it really has nothing to do with the 80/20 rule ..

    it is more on par with a quote from Joal salatin" it is easier to find 100 people to spend 1000 dollars with you than ..1000 people to spend 100 people ..

    i call it the don't compete with wal mart principle .

    p ersonally am looking for a business where i can produce premium goods and gt premium prices ..

    i agree with your concept just disagree with it being linked to the 80/20 distribution curve ...

    basically if you got bills to pay do the 100 and 500 dollar jobs ..but don't fill you pipe with only those .. ..

    i feel that is the problem when people are looking for better time management systems ..they have a full scedual of low value jobs and no time do do job that make a huge chunk of income ..

    most people are working to hard to make doing what makes sense(cents) to ever do the things to make many dollars .
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  • Profile picture of the author focusedlife
    @Odahh - Then what you're saying is they're spending 80% of their time focusing on the lower job 80% and not enough time on the 20% slack adjusters that could make all the difference, right?

    If that is the case...then where in lies the problem with my assertion that this is the 80/20 rule in action?

    Regards,

    Los
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    • Profile picture of the author Odahh
      Originally Posted by focusedlife View Post

      @Odahh - Then what you're saying is they're spending 80% of their time focusing on the lower job 80% and not enough time on the 20% slack adjusters that could make all the difference, right?

      If that is the case...then where in lies the problem with my assertion that this is the 80/20 rule in action?

      Regards,

      Los
      if you are convinbced you are actually explaining the 80/20 principle..in your original post .. that is fine ..

      ill stick with the explination i got from richard koches book and the explination tim ferrisgives on how he used it in his business ..

      and i will file your exleccent explination for climbing the value chain/premium pricing with the stuff i git from fan kennedy and other authors ..

      your op is spot on excellently laid out explination for why to do higher value job or use premium pricing ..

      anyone who follows that advice regardless of what they call it should greatly improve their chance of success and of making a great income ...

      in fact even though i am not going to be in im.. the business i am laying out that i want to do ..is structured at the core around the concept you explain ..

      so there is agreement in how valuable the concept is..just not what we are calling it ..
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  • Profile picture of the author Michael Ten
    I need to apply the 80/20 rule more. Good reminder. (=
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