Want to do more by doing less?

How about earning more, while spending less time?

Let me introduce you to the 80 / 20 RULE.

AKA The Pareto Principle.

I'll explain how @CJ_Johnson17th used this yesterday,

to trim expenses, while keeping profits flowing heavily.

A THREAD

The 80-20 rule states that:

80% of outcomes (outputs),
come from 20% of causes (inputs).

Simply put:

The majority of the effects,
come from the minority of causes.

In the 80-20 rule, you prioritise the 20% of factors
that will produce the best results.

Here's a few examples:

20% of a book contains 80% of the voluble info

20% of a carpet gets 80% of the ware

20% of customers account for 80% of complaints

So how do we use it?

Well, we can take the 20/80 rule,
and apply it to pretty much anything.

Understanding the principle is ESSENTIAL, if you want to prioritise your tasks, and organise your days, weeks and months for the better.

Example A)

I found that 20% of my clients will make 80% of my profits.

The number of time spent on a high profit client, is basically the same as a low profit client,

In other words:

If I’m dividing my time equally over the number of tasks -

20 percent of those tasks contributed to 80% of my results.

So how can we get rid of those clients carefully,

while still profiting?

After all your reputation is everything.

And who turns down profit?

We now have to drop 80% of the clients the right way.

So, create a list of your top 20%, everyone else you strategically hand off.

By that I mean sell them to other respected industry professionals for 10% commission.

Now you make 10% PROFIT off 80% of your customer base, with no time input.

WHILE keeping them happy, by not leaving them stranded.

Congratulations, you have now freed up 80% of your time will still making 80% of your profits.

That is the 80/20 rule in action.

Now you can profile of your top clients, and start looking exclusively for the type of client who fits the profile:

High paying clients, that require the less stress and time.

If you fill up that 80% with this type of client.

That's a 400% profit increase with no extra output.

Still not convinced?

Let me give you a relevant example.

Chris Johnson ( @CJ_Johnson17th) just closed his affiliate program to new applicants.

His reasoning:

A few accounts make up for 98% of his affiliates (profit).

The other 2% make up for 99% of the requests (time).

It was no longer profitable for his assistant to sign people up that only make a fraction of a sale.

So he closed it down to the public.

That is the 80/20 rule in action, once again.

Killer stuff.

How can I use this you might ask?

A few ideas:

- Identify and complete the top 20% of your to do list
- Focus on the most relevant 20% of your workload
- Analyze the complaints of your customers
- Find the riskiest 20% of your business plan
- Keep the top 20% of your clients

Now go apply this to anything and everything in your life.

IT'S A GAME CHANGER.