The ’80:20 principle’ works on the premise that there is an imbalance to the ratio of 80:20 between cause and effect, input and output, effort and reward and so on…
Once you can determine which 20% of what you do or spend produces 80% of your income or results, then you have an automatic, ongoing wealth system.
For instance, last year I cut down on my working hours (I was working 55-60+ hours per week), and noticed that I was much, much more productive.
In this case, I identified the 20% of activities I should spend the most time on regarding running my business MediaMinister to produce the 80% of results.
Then I worked out which 20% of my overall marketing budget spend produced roughly 80% ROI. So I reduced the 80% of the marketing budget that wasn’t bringing in as much ROI, and still got the same results!
I did the same with the type of projects I work on. Now I find that I work on fewer projects, but for bigger rewards. I’m not complaining – and my clients certainly aren’t. 😉
COPYRIGHT © 2007, T Dooley