80/20 Rule

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The 80/20 rule, otherwise known as the Pareto Principle states that 80% of the output comes from 20% of the input. Or, in other words, 80% of the effects come from 20% of the causes. Surprisingly, this theory has been shown to hold true in many industries.


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In business

  • 80% of the profit will result from 20% of the products.
  • 80% of your profits come from 20% of your customers.
  • 80% of your complaints come from 20% of your customers.
  • 80% of your profits come from 20% of the time you spend.
  • 80% of your sales come from 20% of your products.
  • 80% of your sales are made by 20% of your sales staff.


In internet marketing

80% of sales and profits are made by 20% of internet marketers. A useful way of looking at this in terms of productivity is that 20% of the work you do will produce 80% of the positive outcome. Take a look at what you're doing now in your business and see where you can improve your business by applying this principle.


In software

Microsoft reported that eliminating 20% of the bugs resulted in 80% of the errors and crashes are eliminated.


In economics

80% of the world's global income is controlled by 20% of the population.

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