Master The Art Of The 80/20 Principle With These 8 Tips

Intelligent and resourceful people are using the  80/20 principle in their personal, professional as well as business life to enjoy maximum success.

Where Did 80/20 Principle Originate From?

Vilfredo Pareto, a well known Italian economist, created a mathematical formula to describe the unequal distribution of wealth in his native country and according to him, 20% of the population owned 80% of the wealth.
After Pareto made his observations, many people observed the same pattern in their own areas of expertise and they accepted the fact that a minority of causes, inputs or efforts normally lead to a majority of results, rewards or outputs.
With the evolution of time, many people started applying this rule in every aspect of their life and eventually,
80/20 principle has become an inevitable aspect of all business success stories.

Can you use the 80/20 principle in your online business?

1.  What Does Pareto Principle Mean To Us Today

You do not need to learn rocket science technology to understand this principle and it can be described as a simple concept that delivers excellent results.
Everybody knows that time is money and your valuable time should be managed really well to achieve the expected results.
Time management experts always assert the true relevance of this principle in making an online business highly successful and when you apply it properly, you can enjoy amazing results. In order to understand this concept deeply, you need to understand three basic interpretations of this principle.

  • 20% of your customers produce 80% of the results
  •  80% of your problems come from 20% of your customers
  •  20% of your activities produce 80% of your results

Now, they can be interpreted in regard to how you are spending your time.
Since 80% of activities generate only 20% results, the remaining 20% of your activities produce 80% of your results.
So it is always advisable to focus on the 20% to save your valuable time.
For example: if you are working 10 hours a day, 80% is 8 hours and 20% is 2 hours, and if you cut the 80% that does not deliver the expected results, you can come to the conclusion that you are working only 2 hours to produce the best results for your online business.
So 80/20 principle teaches you how to generate optimal results with minimal efforts and this rule asserts the importance of adopting a systematic method of approach as well.

2.  Activity Log For a Week

You should create an activity log for every week and every day, you must list all activities for the day.
At the end of the day, you can find how long it took you to perform all these tasks.
After a week, you can rate each of those activities, based on how well it is helping to build your online business.
This method of approach always helps you avoid wasting time for unproductive activities like subscribing to unwanted newsletters,
reading irrelevant blogs, answering emails throughout the day, surfing internet without a concrete plan and many more and,
you can focus on more important activities that bring cash in the best manner- what I term money making activities.

3. Identify and Focus on the Best Visitors,Subscribers and Customers

If you want to apply 80/20 principle in your online business, you should always focus on the best visitors, subscribers and customers (20%)
because they are the ones who bring 80% results.
Your primary goal should be to write sales pieces for them and it is a well known fact that you cannot please everybody who visits your site.
The best method of approach is to focus on activities that help you build your own group of followers; in fact, a well-knit group of followers and buyers.
The 80/20 method advocates the importance of spending quality time on finding out the features, benefits and emotional end results that your best customers are looking for and, by doing so; you will be able to focus more on the 20% activities that produce 80% results.

4. Prioritize your tasks

When you prioritize your tasks, you should take into consideration two important factors : potential profitability and time constraints .
When you manage to identify the potential profitability involved with a task, you can always expect most efficient results and the time constraints should always be given the due attention they deserve.

If you focus on these two important aspects while prioritizing your tasks,  you can achieve better results with minimal efforts and time then, the remaining time can be used for other important activities.

5. Avoid Distractions,Give yourself strict guidelines

You need to follow strict guidelines to complete important tasks and unwanted distractions should be avoided.
It is always advisable to make use of reliable online time management tools to find out where you become unproductive
and such an approach protects you from committing the same mistakes again.

6. Focus on One Task at a Time

When you sit down to work, you should not spread your time between multiple tasks.
Since you have prioritized your tasks, you can work on it until it is finished and this process is often known as killing projects.

7.  Find out the most suitable social media platforms and focus only on them

Identifying the most relevant social media platforms is the key to build your online business successfully  and you can use a time management system and calendaring system to allocate proper time for your social media activities.
It is always advisable to automate certain parts of the social media with other types of quality online tools like CRM software as well.
You need to have an agenda for your social media and this agenda should be kept in mind while engaging with the best visitors,
subscribers and customers in a daily manner.

8.  Make use of Google Analytics in the best manner and follow good habits

When you come to know about your traffic sources in a detailed manner, you can easily identify the best visitors
and Google analytics always helps you learn about your traffic sources.
You can also follow good habits like creating projects based on the individual parts of your business,
creating daily checklists and taking the guesswork out of your business and so on.

Breaking down your tasks and, figuring out how you are building income and get traffic are the best ways to implement 80/20 rule
and these simple and valuable tips always help you use 80/20 principle in your online business with utmost efficiency.

Check our suggested tool for effective time management found here.

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COMMENT AND SHARE your thoughts on 80/20 principle below.

About The Author

Siphosith

A passionate small business entrepreneur that educates and motivates other entrepreneurs generate traffic to their businesses to create residual income for life. A successful blogger and network marketer who specializes in traffic generation strategies.

27 Comments

  • Heather

    Reply Reply December 1, 2014

    Love Love LOVE this post. I have pinned it so that I can look back on it often. It is something that I needed to read with discussions we have been having in the house.

    • siphosith

      Reply Reply December 6, 2014

      Welcome to my Blog heather , I’m glad that you found the information helpful.

  • Nile

    Reply Reply December 1, 2014

    I use this principle in my social sharing… I actually probably share more than 90% other people’s content these days because there really is a lot that I like, and coincides with who I am.

    • siphosith

      Reply Reply December 6, 2014

      Its awesome that you have known of the principle and you practice it.

  • Nick #thisyearinmusic

    Reply Reply December 4, 2014

    Is this similar to the Duncan Principle?

    • siphosith

      Reply Reply December 6, 2014

      I will look into the Duncan principle, Have not heard of it Nick.

  • Jaye Carden

    Reply Reply December 5, 2014

    Great content, these tips and ideas really help. The 80/20 is a good way to describe how we should operate.

    • siphosith

      Reply Reply December 6, 2014

      Thanks for stopping by and commenting Jaye.

  • Llyane @FrenchOnSkype

    Reply Reply December 5, 2014

    I love the fact that you recommend us to create good habits. Everything that we create is due to good or bad habits. Thanks for this! 🙂

    • siphosith

      Reply Reply December 6, 2014

      Welcome to my blog Llyane and thank you for commenting.

  • Yorinda Wanner

    Reply Reply December 5, 2014

    Hi Siphosith,
    great suggestion which cover the whole range.

    It was good to read about the history of the 80/20 principle1

    Thank you so much for sharing your expertise!
    Cheers,
    Yorinda

  • Zach

    Reply Reply December 5, 2014

    That’s an interesting theory. Is there any published support for it outside the realm of socioeconomic status in Italy?

    Regardless of the numbers, increasing time spent productively and decreasing time wasted is a sound principle.

  • Bobby

    Reply Reply December 6, 2014

    80/20 is great but my favorite productivity method is Parkinson’s Law. I learned it in economics and have been using it for everything I do from my finances to working out. Using the 80/20 and Parkinson’s Law together for me is like giving spinach to Popeye. Really great post!!!

    • siphosith

      Reply Reply December 6, 2014

      I will have to look into Parkinson’s law, I’m not familiar with it. Thank you for sharing Bobby.

  • Gregory Smokey Bowen

    Reply Reply December 7, 2014

    This is a very good post with excellent tips for maximizing results while minimizing activites…..Well done ….The 80/20 theory and your tips of how to apply it, will at least create positive work habits…….positive work habits = positive income…..Thank you Siphosith…..Smokey

    • siphosith

      Reply Reply December 7, 2014

      Hi Smokey thank you for commenting, yes positive work habits are essential for positive income.

  • There are many methods, procedures and systems. All work and we have to find the one which works well for us.

    Example: I have no small children nor any distractions. I spend most time speaking with people Globally. I have lots of offsite supportive activities during the week. Which, have nothing to do with generating revenue. I give back.

    Now, as for my company producing revenue. We do not? We give free services to our communities Globally. The more we give the more that is given back to us in various ways.

    Our funding is based on B2B supportive activities that they need which are not part of our services. Most companies have daily needs which are contracted out. We match contractors and get 10% of the contracts. That is a very lucrative activity. We have been doing this for over 3 decades.

    So, my personal time is subcontracting workers of all types. Then, community service. Then, online activities that will help others generate a funding source. That is it.

    It all depends on the person. Which method, system they use. Hey, what works is always good. As long as it is honorable and ethical.

    Hey Siphosith, I can not get enough of your site. Full of exciting facts and your perception. I love it!

    • siphosith

      Reply Reply December 8, 2014

      Thanks for commenting William. You have raised a good point about finding what works well for each person, people are not the same and are not in the same circumstances.

  • Mark

    Reply Reply December 8, 2014

    What a fabulous article Siphosith!

    And you have you used it very expertly to demonstrate how and why we definitely need to be mind full of what specific activities we are concentrating on throughout the day.

    Because clearly, a staggering 80% of them is not producing the of results we desire!

    Thanks so much for really putting things in the right perspective!

    And helping us to first properly identify those extremely valuable 20% of daily activities,that we nearly need to be focused on!

    • siphosith

      Reply Reply December 8, 2014

      We learn new stuff daily if only we could apply what we learn. Thanks for commenting Mark.

  • Donna Merrill

    Reply Reply December 8, 2014

    Hi Siphosith,

    If there is one thing I have learned it is using the 80/20 rule to be productive. It comes in handy not only for production, but for things I write on my blog and marketing.

    You have given an excellent overview on this and you didn’t leave out one detail. Fantastic article and I’m excited to share it with my friends.

    -Donna

  • Leanne Chesser

    Reply Reply December 8, 2014

    Great tips. I used to teach a lot about time management and organization. I asked clients to keep an activity log for a week. They hated it at first but always ended up loving it because of the insight it gave them.

    • siphosith

      Reply Reply December 8, 2014

      It is so hard to change, but once the change happens all is well.

  • Willena Flewelling

    Reply Reply December 8, 2014

    You know, if only I could keep an activity log for the week, it would be a big achievement. I’ve started one countless times, but I can never remember to write things down! Even this morning I was going to do one for today, and then the idea flew out of my mind and it never came back again until now — 8 hours later!! — when I read your blog post.

    But my faults aside, this is an excellent list of tips for getting greater results. Thank you!

    • siphosith

      Reply Reply December 8, 2014

      Hey Willena we have to start somewhere a day at a time, and we keep learning and are reminded of things we know but do not do, all the time.

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