The Pareto Principle – The 80/20 Rule And How It Can Affect Your Life
In my previous blog “So How Do You Create Abundance” I mentioned the 80/20 Rule and that I would elaborate on it so here we go!
From Wikipedia, the free encyclopedia
“The Pareto principle (also known as the 80–20 rule, the
law of the vital few, and the principle of factor sparsity)
states that, for many events, roughly 80% of the effects
come from 20% of the causes.
 Management consultant Joseph M. Juran suggested
the principle and named it after Italian economist
Vilfredo Pareto, who, while at the
University of Lausanne in 1896, published his first paper
“Cours d’économie politique.” Essentially, Pareto showed
that approximately 80% of the land in Italy was owned by
20% of the population; Pareto developed the principle by
observing that 20% of the peapods in his garden contained
80% of the peas.
 It is a common rule of thumb in business; e.g., “80% of your
sales come from 20% of your clients.” Mathematically, the
80–20 rule is roughly followed by a power law distribution
(also known as a Pareto distribution) for a particular set of
parameters, and many natural phenomena have been
shown empirically to exhibit such a distribution.
 The Pareto principle is only tangentially related to Pareto
efficiency. Pareto developed both concepts in the context
of the distribution of income and wealth among the population.”
So there you have it.
What you may not realize is that this principle can be
applied right across the board to anything and everything
in all walks of life.
I first came across this 80/20 Rule when I read Perry Marshall’s
book 80/20 Sales & Marketing. It was an eye opener. I believe the
Pareto Principal or the 80/20 Rule as it is so often referred to these
days, should be taught in schools.
Rather than go into detail here I would urge you to visit Perry Marshall’s website and see just how understanding the 80/20 Rule can impact every area of your life. And if you are in business then it is imperative you gain
this information. Here is the website https://www.perrymarshall.com/8020-book/
Many people have benefited from this knowledge and you can too.
Simply join the 4% Group and open up a whole new way of thinking
that will not only grow your business but will enhance your life in many
ways you may currently be unaware of.
I love to share value so do get in touch with me if I can assist you in any
way to improve your life. Life should be an exciting journey. Make sure
you make the most of it.
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