The rule--usually described in business--states that 20% of a company's clients produce 80% of the income. As a result, business owners should concentrate their efforts mainly on the top 20% and not so much on the other 80% who disproportionately drain your company's time, energy, and mental capacity.
Give Credit Where It's Due
Most people don't know that the "80-20 Rule" goes by another name: the Pareto Principle. Vilfredo Pareto, an economist at the turn of the 19th century, originally applied his law to income distribution, saying 80% of society's wealth and income accrues to 20% of the population. Generalized, his law becomes, "80% of all outputs [or consequences, or results, or profits] come from 20% all inputs [or causes, or efforts, or clients]."
Don't Re-Invent the Wheel
Pareto's powerful principle reaches far into our lives. If you have the presence of mind to recognize how a small number of people/events/bills can affect the majority of your time/energy/spending, then you're already ahead of most consumers.
Give Credit Where It's Due
Most people don't know that the "80-20 Rule" goes by another name: the Pareto Principle. Vilfredo Pareto, an economist at the turn of the 19th century, originally applied his law to income distribution, saying 80% of society's wealth and income accrues to 20% of the population. Generalized, his law becomes, "80% of all outputs [or consequences, or results, or profits] come from 20% all inputs [or causes, or efforts, or clients]."
Don't Re-Invent the Wheel
Pareto's powerful principle reaches far into our lives. If you have the presence of mind to recognize how a small number of people/events/bills can affect the majority of your time/energy/spending, then you're already ahead of most consumers.
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