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 Pareto principle: 80% of your posts should be informative and 20% can be promotional. This article is an ideal example. I am sharing information without loading it up with my own sales spiel. The perfect time to post is different for everyone “The world’s best practices aren’t always your best practices.” – Tim Welsh, Academic Partnerships I…

    @ProBloggerin Social- 15 readers -
  • 5 Things I Would Do If I Were Starting Affiliate Marketing Today

    … in going to events where they’d network with legitimate affiliate marketers. This form of learning by osmosis — for newbies and veterans alike — is vital for picking up signals about where the industry is heading. Good places to start include Affiliate Summit, AdTech, and whatever annual meetup your network of choice is currently pimping. 4. I…

    Finch Sellsin Affiliate- 13 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- 12 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- 7 readers -
Get the top posts daily into your mailbox!
More from around the web