Efficiency To The Max Or How To Use The 80/20 Rule

Have you ever heard about the 80/20 rule? If you haven’t, this article will probably be one of the most useful things you’ve ever read in your life. If you have, I hope I’ll give you a new perspective and relevant knowledge that you can implement immediately in your life – both personal and professional.

Efficiency to the max or how to use the 80/20 rule

Many years ago the Italian philosopher Vilfredo Pareto formulated a principle, which remains in sociology as the “80/20 Rule” or “Pareto’s Principle.” It is as follows:

In every society, 20% of people produce 80% of the goods and profits. On the other side of the curve, 20% of the people produce 80% of the problems and losses.

If we transfer that in the business field, it will sound like:

You achieve 80% of the results by only 20% of the effort and the opposite –by 80% of the efforts, you achieve only 20% of the results.

The question is how to find out, which are this 20 % of the actions, and how to apply them in business and life. I’ll give you examples from my personal life to make it much easier for you.



Efficiency to the max or how to use the 80/20 rule

I started to practice salsa a few months ago. Unfortunately, I missed the first few lessons. Many people will say it doesn’t matter that much, but it is not like that. I was into a new dance, and I didn’t know anything about its rhythm and steps. To be honest, I was a terrible dancer, and I was virtually like a tree.

The result was that I was progressively falling behind compared to the others, until one day the instructor came to me and said that I have only two options – I can take some private salsa lessons or I can start with the beginner’s group.

To be honest, I was upset at first. How is it possible that I’m not able to continue practicing with that group when I enjoy dancing so much (although I am awful at it)?! When I thought about it, I came to the decision to take some private salsa lessons. From the first lesson, I got the basics and the rhythm of the dance (thanks, Benny, you are such a great teacher).

And guess what happened – I started getting used to the fundamentals of the dance, and in a short period, I began to do some more complex steps without the difficulty I had before. I started to advance progressively, instead of gradually falling behind.

Why did that happen? My answer is – because I managed to learn the basics. My conclusion for salsa beginners is that the effort of learning the basics is that 20 % of the actions, that bring 80% of the results and you have to focus on that if you want to start dancing salsa faster.


It’s the same in my business. It’s a fact that I knew the 80/20 rule much before I started using it in practice (for my great regret). If I could turn back time, I would start earlier. That’s why I don’t want you to make the same mistake.

What exactly happened – I started to observe what was going on in the core of the business (before that I was more of an operational guy flooded with different day-to-day activities). Then I realized that out of 1800 items I sell, 99% of the profits comes from 15-20 products. I was surprised. Here the expressions of that rule are even more extreme – 1% of the products bring 99% of the profit.

This surprising discovery spurred me to test different offers for those products to make them more attractive to customers and eventually I began to bring in paid traffic to these offers. What was the result – 400% rise in the revenue for two months. Isn’t it great? Lol

I claim that this rule can be applied in every area of people’s lives. You just need to know how. I will tell you more about that in the next article.

Good luck!

Velizar V


Онлайн Предприемач, Блогър, Инвеститор
Автор – #1 книга за ПОСТИГАНЕ НА ЦЕЛИ в България

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