Are you familiar with the 80/20 rule? If not, it’s time to get closely acquainted. And if you are already familiar, it’s time to put it to work for you! It’s already at work around you – you just may not know how to recognize or leverage it.
So what IS the 80/20 rule? Known as the Pareto Principle, the Law Of the Vital Few, or the Principle of Factor Sparsity, it simply states this:
For many life events, 80% of the effects are a result of 20% of the causes.
What does that mean? Well, for example:
- 80% of the wealth is owned by 20% of the population.
- 80% of crimes are committed by 20% of criminals.
- 80% of medical resources are used by 20% of the patients.
- 80% of the land is owned by 20% of the people.
- 80% of revenue comes from 20% of investments.
Why is this so important? How does it apply to sales? And most importantly, how can you put it to work for you?
Well, in sales:
- 80% of the sales come from 20% of the clients.
- 80% of the revenue comes from 20% of the salesforce.
- The way you spend the first 20% of your day, week, month, year, etc, determines the way the other 20% will go!
This is HUGE!
You see, when you recognize that 80% of your sales come from 20% of your clients, you can understand your target client better and be intentional about who you’re working with.
See, once you understand who those clients are…..
You can work with just your top 20%.
Here is a little secret: This is one of the most effective ways to double your sales!
Think about it! You’re spending a LOT of time, effort, and mental energy on the 80% of the clients that only account for 20% of your sales! Take a look at your books and you’ll find that that is already the case. It’s rather an epiphany!
So let’s talk about your top 20%. Who ARE they? What do they like? What do you like about working with them? Where are they and where did you connect with them? Take down some notes. Examine who they are so that you can dedicate some mental energy to finding more like them!
Now, I’m not suggesting that you neglect and stop selling to the other 80%. However, you can leverage your time to maximize effectiveness when you intentionally invest your time in the 20%.
Now, about your sales force. If you want to increase productivity, consider this: 80% of your productivity can be attributed to 20% of your workforce.
Now, I’m not suggesting that you fire over half of your staff! However, take a look at your top 20% workers and find what they are doing that is producing so many results – and put them to work helping the others increase their skills!
Finally, examine the way that you are spending your time. When you schedule things matters as much as what you place in your schedule. The way you spend the first 20% of your day will determine, to a large extent, how the other 80 percent of it goes.
Try it! Have you ever noticed that, when you start your day “on the right foot,” that your productivity seems to be up? You’ll find when you examine those days that, more often than not, you were productive in your early hours of the day.
This applies to your week, your month, and your year as well! So, how should you schedule your productive hours? Be intentional about 20% of your time – and the other 80% will follow suit!
Now for the best news for your business in 2019.
What happens when you’re only working with your top 20%? What happens when they become your 100%?
You develop ANOTHER top 20% out of THAT 20%.
Do you see how huge this is?
The principle is exponential! Your sales can double and triple very quickly – simply by continually working your top 20%!
Do you want to double your sales? Put the 80/20 Rule to work for you in 2019. Your sales won’t just double – you might just find your business going quantum.