I was reminded again of the 80/20 principle the other day when I received a Brian Tracy's Success Management email Newsletter. By the way, I recommend subscribing to Brian Tracy's daily quotes or other types of daily positive or business email newsletters as a great way to start off your day.
Any way, as Brian Tracy mentions, the 80/20 rule is also called the Pareto Principle after its founder, the Italian economist Vilfredo Pareto. He noticed that people seemed to divide naturally into the top 20%, what he referred to as the “vital few”, who had the most money and influence, and the bottom 80%, which he referred to as the “trivial many”. He then discovered that virtually all economic activity was subject to this rule.
It was in network marketing that I first remember hearing this rule and through the years I have seen that it applies to more than just economics.
20% of your downline will do 80% of the activity in your business.
20% of your customers will contribute to 80% of your sales.
20% of your time spent will yield 80% of the valued results
I immediately thought of Ann Sieg, the author of The 7 Great Lies in Network Marketing and the Renegade Marketer ebooks, and the Renegade Marketing System. In case you are not aware of it, the name of her business is 80/20 Marketing Inc.
Ann and I have been working together since the end of 2004 as cross-line team mates as part of a mastermind group and she is now in my downline in SendOutCards. I was fortunate to get chance to meet her face-to-face again in Salt Lake City this August and I got to meet her husband, Brian, for the first time. In referring to the 80/20 in their company name, he says, “I would rather work for myself 80 hours a week than work for someone else 20 hours”
I wholehearted agree with him! That is one of the things I love best about network marketing and working for myself – being in control of my own time and life. However, the biggest benefit can also be the biggest challenge.
When you come from an “employee mind-set “you are used to someone else dictating your day and time and it is often hard to make the shift to an “employer” or “entrepreneur mind-set”. You need to be plan your business time so you are using it productively. For most people starting out in network marketing, they are working their new business around their job until they start bringing in enough income to 'fire their boss”.
When you have a limited amount of time to work your business, using the time you do have is even more vital to your success. First you need to treat your business as a business. Determine how much time you have, schedule that time in your calendar or weekly planner and stick to it. If family or your job cuts into your business time, they owe you, so make sure you 'pay back' that time.
Applying the 80/20 rule can help you determine which activities will yield the greatest results so you use your time productively. You need to balance your activities. Of course you need to spend some time on marketing but the most important use of your time will be talking with potential customers or business partners. So don't spend 80% of your time writing that perfect email, newsletter or brochure. Also, you need to make sure you are spending time with qualified prospects. Again spending 80% of your time with the wrong people will only get you frustrated. You need to learn how to work smarter and spend your time on the things that will yield 80% of your results.
If you would like to learn more about being more effective in your business, download the free ebook, The 7 Great Lies in Network Marketing, request a free SendOutCards DVD from my website, (SendOutCards is a great tool time-saving for ANY business), then request a complimentary consultation to discuss your business or business research and learn what will be most important for YOU.
To your success,
Wendy Mills
716-514-8858
http://www.ahomebusinessworks.com/
Any way, as Brian Tracy mentions, the 80/20 rule is also called the Pareto Principle after its founder, the Italian economist Vilfredo Pareto. He noticed that people seemed to divide naturally into the top 20%, what he referred to as the “vital few”, who had the most money and influence, and the bottom 80%, which he referred to as the “trivial many”. He then discovered that virtually all economic activity was subject to this rule.
It was in network marketing that I first remember hearing this rule and through the years I have seen that it applies to more than just economics.
20% of your downline will do 80% of the activity in your business.
20% of your customers will contribute to 80% of your sales.
20% of your time spent will yield 80% of the valued results
I immediately thought of Ann Sieg, the author of The 7 Great Lies in Network Marketing and the Renegade Marketer ebooks, and the Renegade Marketing System. In case you are not aware of it, the name of her business is 80/20 Marketing Inc.
Ann and I have been working together since the end of 2004 as cross-line team mates as part of a mastermind group and she is now in my downline in SendOutCards. I was fortunate to get chance to meet her face-to-face again in Salt Lake City this August and I got to meet her husband, Brian, for the first time. In referring to the 80/20 in their company name, he says, “I would rather work for myself 80 hours a week than work for someone else 20 hours”
I wholehearted agree with him! That is one of the things I love best about network marketing and working for myself – being in control of my own time and life. However, the biggest benefit can also be the biggest challenge.
When you come from an “employee mind-set “you are used to someone else dictating your day and time and it is often hard to make the shift to an “employer” or “entrepreneur mind-set”. You need to be plan your business time so you are using it productively. For most people starting out in network marketing, they are working their new business around their job until they start bringing in enough income to 'fire their boss”.
When you have a limited amount of time to work your business, using the time you do have is even more vital to your success. First you need to treat your business as a business. Determine how much time you have, schedule that time in your calendar or weekly planner and stick to it. If family or your job cuts into your business time, they owe you, so make sure you 'pay back' that time.
Applying the 80/20 rule can help you determine which activities will yield the greatest results so you use your time productively. You need to balance your activities. Of course you need to spend some time on marketing but the most important use of your time will be talking with potential customers or business partners. So don't spend 80% of your time writing that perfect email, newsletter or brochure. Also, you need to make sure you are spending time with qualified prospects. Again spending 80% of your time with the wrong people will only get you frustrated. You need to learn how to work smarter and spend your time on the things that will yield 80% of your results.
If you would like to learn more about being more effective in your business, download the free ebook, The 7 Great Lies in Network Marketing, request a free SendOutCards DVD from my website, (SendOutCards is a great tool time-saving for ANY business), then request a complimentary consultation to discuss your business or business research and learn what will be most important for YOU.
To your success,
Wendy Mills
716-514-8858
http://www.ahomebusinessworks.com/
