Pareto Principle

The term "Pareto principle" can also refer to Pareto efficiency.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. Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods 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".
Posts about Pareto Principle
  • Stay a Step Ahead on Social Media: Tips from SMX Social in Las Vegas

    …, the conversion is falsely attributed to Google organic search, even though Facebook was the first point of contact and crucial to the sales cycle. Due to this realisation, marketers are moving toward measuring ROI based off more factors than just the last click. If you only measure by the last click, it is like measuring each player on a footy team…

    @ProBloggerin Social- 19 readers -
  • 5 Things I Would Do If I Were Starting Affiliate Marketing Today

    … of which is beyond the scope of this blog. Here’s the sad truth: Inside information is at a premium for newbie affiliates. The guys who need the attention of their AMs (Affiliate Managers) are often the guys who the AM has little incentive to work with. Your affiliate manager could be handling dozens, even hundreds, of accounts. Imagine…

    Finch Sellsin Affiliate- 15 readers -
  • 2014 Holiday Marketing Guide: Lessons From the Big Wigs

    … as a springboard for planning is a non-intimidating place to start. According to the Pareto Principle, 80% of your business comes from 20% of your total customer base, and this is unlikely to skew much during the holidays. To increase your holiday sales, focus first and foremost on increasing your sales to your most loyal fans and of your top-selling…

    Chelsea Baldwin/ The Daily Eggin Social EMail- 24 readers -
  • Identify and Market to the 5 Types of Freelance Service Clients

    … States, the Philippines, Western Europe, Canada and Australia get: Nothing. Not even twenty percent of freelancers make eighty percent of the income (yes, the old 20/80 rule). The pareto principle works when it comes to wealth distribution, asset distribution, and it definitely works when it comes to marketing. If you want to be in that twenty…

    Gene Eugenio/ Marketing Beesin SEO- 17 readers -
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