Okay, so it’s not actually “age-old”, but rather got its roots in 1903. You get the idea.
The “80/20 rule,” also known as “Pareto’s Principle” suggests that 20% of something always accounts for 80% of the results. Examples:
• 20% of your workday results in 80% of your results.
• 20% of your affiliates results in 80% of your affiliate sales.
• 20% of your optin list results in 80% of your responses.
Without in any way suggesting that 80% of my affiliates, customers, list members and workday time is “trivial,” I think it’s safe to say that the principle is fairly accurate in many cases.
If you examine your own life, I’m sure you can see similar results.
The value of the 80/20 “rule” for you is that it reminds you to focus on the things that matter the most to your business.
It reminds you to spend your time and energy on the things that most directly influence the bottom line of profit.
Every year Forbes® and other magazines compile and release their list of “Most Influential” people. These “power lists” ranked celebrities, athletes, executives, and so forth based upon various criteria.
It’s all about whose the most “influential.”
Maybe you should create your own list as well.
Who are your best customers?
Who are your top affiliates?
Who are the “unsung heroes”?
Who sends you the most referrals?
Who are your most valued partners?
Who are your evangelists?
Out of your contacts – your entire network – who are the 50-100 people who ultimately are the biggest contributors to your business?
If you take the time to find out (and you should!), I think you’ll find out that 80% of your profit comes from 20% of your contacts … these folks are your best customers, top affiliates and so forth.
These are the folks that you need to do something “extra” for in order to further build your business.
Let me share a quick story with you…
When I was 20 years old I went to work at Kinko’s Copies and my manager was a guy named Duane.
I learned something about management from Duane that I’ll never forget, and it has served me well during the past several years that I have had an online business (managing customers, affiliates, subscribers and partners).
I worked the newly formed “graveyard shift” at Kinko’s and I was a very productive employee.
I worked alone and I worked fast.
Duane had told me when I finished my nightly duties, I could basically do whatever I wanted to do with my remaining time.
That’s how I learned to use a computer, but that’s a different story.
One night I got finished early. Real early. I’m talking several hours early.
And I decided to completely redo the stock room.
I gave it a thorough cleaning, completely restocked the shelves, organized everything into a neat, easy-to-use display and basically transformed a junky stockroom into a streamlined work of art.
Duane was very impressed and said so.
But, that’s not what I learned from him.
The following Saturday morning we had our monthly “store meeting” with every employee in attendance.
During that meeting, Duane stood me up in front of everyone, thanked me and had everyone applaud my efforts in reorganizing the stockroom.
Then, he handed me a $100.00 bill as a cash bonus.
From that day forward, I worked twice as hard as before for Duane.
Find those folks who are the most influential to your business and reward them.
Give your top affiliates extra commissions for a job “well done.”
Deliver some unadvertised bonuses to your top customers for their repeat business.
Those subscribers who consistently answered your polling questions, gave your feedback and helped you out over the months and years… do something special for them.
- Mention these folks in your newsletters and other publications publicly.
- Contact them personally.
- Give them advanced notice to upcoming events and announcements.
- Let them have privileged information that you share only with your “inner circle.”
- Reward them.
- Applaud them.
- Cheer them on.
And I guarantee you they will work twice as hard for you in the future.
Your affiliates will choose YOU to focus on instead of your competition. Your customers will buy more from you. Your subscribers will read every word you publish. Your evangelists will proclaim you louder than ever.
This “strategy” gets your marketing messages read because those who are most responsible for your success will be even more devoted to you than ever before, more diligent to promote you to those they are in contact with … further spreading your messages to the masses.
You can’t buy an ad so powerful as the voice of those who are loyal.
