Understanding The 80/20 Rule By Mbonu Watson

The 80/20 rule is now commonly called the Pareto Principle. Pareto who first discovered this rule when he found that 80% of a nation’s wealth are controlled by 20% of the population

For example

80% of Nigeria wealth are in the hands of 20% of Nigerians and this 20% are the people controlling the wealth of Nigeria for sure

Take Note: these people (the 20%) are not necessarily the government or politicians, the 20% represent individual’s like you and me

So when I say understanding the 80/20 rules by Mbonu Watson, its important that you pay attention to the things being about to reveal in this article

In my deep dives into marketing psychology, I have found this 80/20 rule to be true for almost all areas of business including

Product And Service Creation
Reasons Customers Buy
Popularity Of Products
Sources Of Incoming Leads
Customers Services
Activities In Your Business That Produce Revenues and many others

Why you must have heard that its 20/80 rules most people never apple it to their business let alone other areas of their life

In business, the little stuff kills the big stuff. The only time little things matters are when you are about to start a business, startups and you don’t have all it takes to get started, then starting with the little you have is called for and more important

But once you have started and you want to grow faster, is no longer important that you should focus more on the things that bring you little or no revenue

You must be smart at this point in time and dedicate more of your time attending to things that matter most, things that bring you more revenues

You may have a lot of things in business constantly screaming for attention, but when looking into, there aren’t the tasks that produce revenue

Understanding the 80/20 rule by Mbonu Watson now comes in. What am about to reveal to you here, is the same thing I have used to grow my business products and service worldwide

The same rule I have used to grow all my client’s business; locally clients and international clients at ease.

When I started to apply this rule in my business NL_SOFT revenue skyrocketed. To give you an example. Here are my Business Activities

All My Business Activities

I Code (Develop)
I Design
I Write And Publish
Writing Copy, Sale Copy, Email Letters
Speaking With Clients
Having Meetings
Creating Ads, Adwords, Facebook Ads, Twitter Ads, etc
Coming Up With Offers And Promotions
Building Responsive Lists
Training/ On-Boarding Staff
Creating Funnels
Shooting Videos
Creating Proposals
Looking At Analytics
Public Relations/Interviews

And few others, so if the above listed are my business activities, understanding the 80/20 rules here stated that. I should verify among all, and pick the top 4 to 20% that are producing more revenues for me. while I outsource the others

You must understand things that produce you more revenue, things that bring more money to you and streamline your daily activities around them and outsource the services of other people to handle 80% of your activities

For Example. If monitoring my Facebook, Twitter Ads campaign is taking much time from me, yet generating low revenue, the rule of 20/80 here applies that I should outsource the services of others to handle this area

While I focus on 20% of the things that produce more revenues for my business. in other words, the 80/20% rule demonstrates you can and should disregard 80% of your business activities and focus more on 20% that brings more of the money

The 80% of other activities should either be delegated or outsourced so you can focus on the top 20% that produce revenue for you

Once you have done this in your business, you need to take it one step further and drive to become a high performer in your entrepreneur career

You see: you should apply the 80/20 rule to the 20/80 rule itself. that is to say, 80% of the revenue come from 20% of the 20% revenue-producing activities

To put it more simple

10% of your activities create 64% of the revenue in your business. In my business after cutting out the 80% of my activities that produced little or no revenue, this is what the top 10% of revenue-producing activities looks like

My Revenue Producing Activities

Writing Articles And Publishing
Writing News Letters
Writing Sales Copy
Coming Up With Offers And Promotions
Creating Sales Funnels
Building Lists
Shooting Videos
Coding And Design
Creating Ads

Because 10% bring more revenue to my company, I pay more attention to them, while i outsource the services of others to handle over 90% of activities

Some times I employ people, give them training and delegate the 90% of activities to them

So in your business, if you want fast growth and more revenue, learn to apply this 80/20 principle, by focusing more on the 20% activities the produces more revenue for you

You can always outsource the others, to do that, kindly take a list of all your business activities and list out your top 10 to 20% activities that produce more revenues for you

If you need more understanding of this. you are always free to WhatsApp me on +2348068608490, I will be willing to help

Written by Mbonu Watson

CEO NL_SOFT

NairaLEARN

Publisher AfriNOTES

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