Revealing The Secret Behind The Mysterious Pareto PrincipleHow would you like to know the secret behind the Mysterious Pareto Principle and how it change how you look at your business?

My guess is most of you don’t know what the Pareto Rule is but once I reveal it you will be surprised.

It accredited to a Famous Italian Economist, Vilfredo Federico Damaso Pareto.

Revealing The Secret Behind The Mysterious Pareto Principle

So who is the Pareto guy?

He was a very well know Engineer, Sociologist, Economist, Political Scientist, and Philosopher.

Pareto made several significant contributions to economics, particularly in the study of income distribution and in the analysis of individuals’ choices.

He was also responsible for popularizing the use of the term “elite” in social analysis.

What he is most known for though it the 80/20 RULE!

Pareto Principle or Better Known As The 80/20 Rule

You are probably saying to yourself now I know what that is.

Pareto Rule concluded by observations that 80% of the land in Italy is owned by about 20% of the population.

Now that you know what the Pareto Principle is what does it mean?

The distribution is claimed to appear in several different aspects relevant to entrepreneurs and business managers.

For example:
  • Problems – 80% of problems attributed to 20% of cases.
  • Profits – 80% of a company’s profits come from 20% of its customers
  • Complaints – 80% of a company’s complaints come from 20% of its customers
  • Staff – 80% of a company’s profits come from 20% of the time its staff spent
  • Revenue – 80% of a company’s revenue comes from 20% of its products
  • Sales – 80% of a company’s sales by 20% of its sales staff

Now that you understand what the Pareto Principle is you can figure out why your business is doing what it is.

I hope this post has been a little educational for you.

The 80/20 Rule is pretty much a fact of life and a fact of your business.

Understanding that will help you better build, train, and grow your business.

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