Written by Chris Simoni Tuesday, 19 May 2009 04:23

One of the laws of business and a law of nature is the 80/20 rule. Also known as the Pareto principle, it states that roughly 80% of the effects come from 20% of the causes. Lets break that down. In business it means that 80% of your business is done by 20% of your clients. That is why companies are so focused on customer retention, 80% of their business relies on repeat customers, verus only 20% from new customers.

Lets look at it another way. In a given workforce, 20% of the people are doing 80% of the work. For instance, there are 5 people in Dirt Cheap!!!. Now look at our website, only 1 person is writing articles. 1 person out of 5 people equals 20%.

Which one are you? Are you the 80% that watch things happen, or the 20% that make things happen?