In the previous article I told you what I know about the 80/20 rule, now is time to tell you how to identify that 20% of the actions that will bring you 80% of the results.
The answer might not be very satisfying for you – there is no exact formula for that and you will have to think creatively. Here are some tips:
- You have to take a massive action in many directions and analyze the feedback. That is how you’ll find out what works best. Americans have a really cool way of saying that – throwing spaghetti at the wall to see what sticks. It’s very popular in the entrepreneur world and rightly so. Every entrepreneur should be ready to test many different hypotheses until he finds one that works for him. You should test as well, to find that 20 % that will get you closer to your goal.
In my business, more than 95% of the decisions have been wrong (or even more). By that I mean that those decisions have taken money out of my pocket or have wasted my time without any compensation, except the conclusion that “this is not working.”
And after all, the business is successful. Why? Because I test cheap and when I find that something works, I scale it as fast as I can. That’s why that 5% of correct decisions brought me more money than I lose by the other 95% of wrong ones.
- I advise you to read the Gary Keller’s book – The One Thing: The Surprisingly Simple Truth Behind Extraordinary Results. That’s one of the best books I’ve ever read. One of the main topics of the book is to ask yourself what you have to do right now, at the current moment, so that everything else becomes easy or unnecessary. The author calls this the focusing question and says you have to ask yourself that whenever you wonder what task to start with.
In order to provide an example, I’ll tell you about the 20% of the actions, which bring me the best results. The area is the online business. As I have said, we’ll begin widely and with small steps we’ll narrow the focus until we reach the perfect solution. Of course, I don’t say that this is the perfect approach – it is just what works perfectly for me. It is just an example and you should adjust it to your specific situation and business.
Let’s say that you have an online shop with 10 products in it.
- Initially, you’re focused on being in front of as many people as you can, doing as many impressions, as possible (you can use paid traffic for that). Some of those impressions become click, then some of them – sales – that are the desired result. At this stage, you don’t have to worry that much about the offers and the products that you sell. Just be sure they are good-quality ones, so you don’t throw money down the drain with advertising.
- Once you have sales and you know which are the products that sell, you have to focus on the next step – offers. Test 2-3 different offers for every product that you’ve sold at least once, to see which one sells best.
- After you know that, you have to focus on the marketing. It’s about to find out what is the cheapest way to bring buyers into your offers (Facebook, Email Marketing, Google Adwords etc.).
In general, after doing these actions step by step, you go from 10 products in your shop that you know nothing about to several products, which you know are best sellers and the best offers for them. Also, you know the best way to get traffic to your offers.
There is only one thing left – to start printing money by bringing more and more people into your offers.
Think about it – if you do your math right you are virtually printing money. For example, if you acquire the average customer for let’s say $20 but he brings you $40 of profit then you print $20 and you can do that all day long!
It may sound a little general, but I don’t want to go into details, so I don’t confuse you.
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All the best,