The 80/20 Principle Applied to Sales and Marketing AND Everything Else Too!
Can you imagine what it would be like if you could find the small things you can do, in very little time, with very little money or none at all, to have a greater impact on the people around you.
This is what Richard Koch, author of the million-copy selling classic The 80/20 Principle and The 80/20 Manager, poses in the Foreword of Perry Marshall’s book, 80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More.
Perry Marshall is widely acclaimed as one of the world’s most expensive and sought after marketing consultants. However, you can capture much of Perry’s wisdom from his book for just $15.99 on Amazon and you will find access to $75.00 worth of software tools inside.
This is not a pitch to buy Perry’s book, instead I am going to distill for you what has taken me hours to gather and Perry years create. Let’s begin on page 5 with “80/20 101.” You may know 80/20 as the Pareto Principle discovered by Vifredo Pareto the Italian economist whose research into wealth creation sparked the original discovery that 80 percent of the wealth in Italy was held by 20 percent of the population. Pareto’s discovery has since been extended to the work of Joseph Juran the quality guru and was later referred to the law the of the critical few — 80 percent of the quality flaws come from 20 percent of the causes.
80/20 Also Says . . .
80 percent of your results come from 20 percent of your efforts. 80/20 also says that if you have 10 rooms in your house, you spend almost all of your time in two or three of them. It says if you hire 10 salespeople, two will generate 80 percent of the sales and the other eight will generate only 20 percent of the sales.
Perry emphasizes, “That means that person for person, the two are SIXTEEN TIMES as effective as the eight. That’s right, — a good salesperson isn’t 50 percent better, he or she is 16 X better. This means there’s huge leverage in the 80/20: much to be gained if you pay attention, much to lose if you don’t” Furthermore ”
Best of all, 80/20 and 80/20 [2x] are true of almost anything you can measure in business:
Popularity of products
Reasons customers buy
Sources of conflict
To name a few.
Perry adds, “This means that every one of these things is a source of leverage. It means that each has multiple layers of leverage that you can obtain by “zooming in” — 80/20 [2x] (64:1) and 80/20 [3x] (250:1).
You Can Do Better
Perry continues, “No matter who you are or what level of success you have achieved, invisible leverage points hide under the hood of your company and your career. For you right now, it is possible to work less and make more.”
Everything that really matters in business isn’t linear, it’s exponential. 80/20 is about Power of Laws — powers of 10. You should always think in multiples of 10.
Now go look at your lists: To Do lists, Customer lists, Your Products/Services lists or whatever you list as something you intend to accomplish or measure. For example, classically most of us have been taught to make lists of the ten most important things we intend to do each day and list them in order of importance.
Then, begin with #1 until it is completed. What if you prioritized the list based on the two items that will give you the most leverage? There are probably one or two items that could make most of the rest of the list unnecessary or free up enough time to work on other lists that may have items that could have more impact. Now you will never look at lists the same way again. You may end up with two lists, your list of intentions that match your talent, and a “Not to Do” list of items you may never do again.
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Until you master your inner game you will not likely master anything else. You can be transformed from overwhelm and frustration to confident and fulfilled. You will also be better prepared for whatever is next and going full throttle again.