Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Buy A Business Opportunity of Franchise
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Happy first day of December! It’s December and the end of the year is in full-swing. Don’t go into the holiday travel season without the December Book-of-the-Month: Business Adventures by John Brooks.

December means that its holiday time. No matter what holiday you celebrate it’ll...

Female celebrities are breaking the stereotypes of Hollywood and diving into the world of business. Check out how these women are using their fame, fortune, and power to start their own companies. From media production to makeup, these Top Female Celebrity Business Owners are doing it all!

As...

With only a few weeks lefts in 2017, it’s time to get organized now! The holidays are around the corner and you don’t want to be scrambling at the end of the year. Use these Small Business Organization and Tax Tips to End 2017 to help you keep the end of the year stress to a minimum.

Happy...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
Why Advertise Your Business Opportunity?
Over the years we have been fortunate enough to receive quite a few testimonials. In fact, ... read on
National Property Inspections
Flexible work schedule, no experience needed, and complete training and support available!
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
Top 50 Home-Based Business Ideas
Home-Based Business ownership can be the most rewarding endeavor you will ever undertake. The new year... Read On
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
Copying & Publishing Business Opportunities
Today creativity abounds in the printing and publishing space with more unique business solutions than ever imaginable.
 
Resource Center > Article
80-20 Rule Is a Good One, but There Are Exceptions
24 Jun 11 Posted by: Kathleen C Lanza
in Marketing & Sales
Share this Article:

One of the most firmly entrenched and accepted theoretical principles of the 20th century is Pareto’s principle, more commonly referred to as the 80-20 rule.  Its basic premise states that 80% of the effects result from 20% of the causes.

As a home-based or other small business opportunity or franchise owner, if you ever feel like a jack of all trades-master of none, then knowing more about the 80-20 rule may be of some benefit.  Furthermore, understanding how to use the principle wisely and apply it to your management of customer relationships with the purpose of ultimately increasing sales in particular can be very helpful.

Although it originated as an economic philosophy, the Pareto principle has been used as a core construct by pundits at one time or another to guide us in virtually every facet of life.  Its implications stretch from how much time we should spend doing what we truly enjoy to the number of people we count among our closest friends to ensuring we focus most on what it is we do best.

When it is applied to the business world specifically, the 80-20 rule also has much to offer in the way of guidance.  However, there are times when its limitations actually may work to a business owner’s disadvantage.  Knowing how to recognize those instances and act on them is not only necessary but appropriate.

Here we take a quick look at the 80-20 rule as it specifically relates to how business owners manage customer relationships with the goal of positively impacting sales and where exceptions to the rule in this regard might apply:

The 80-20 rule as it relates to sales states that, “20% of your customer base produces 80% of your revenue,” the implication being that you would do well to focus the majority of your time and energy on the top 20% and less so on the remaining 80% if you want to be profitable.  The principle is a good one that works very well for many business owners in most circumstances.

However, as many experts are quick to point out, the customer-client relationship is not solely a quantitative one and is ultimately about much more than money alone.  In fact, some would argue that the dollars and cents are the easy part.  Smart business owners intuitively know that there are a number of qualitative factors that also come into play.

For instance, let’s say you have a client who isn’t among your top 20% when it comes to revenue, but who ranks somewhere around the 50% mark.  Let’s also say that person knows everyone in town and is willing and able to be a very valuable resource for you when it comes to networking and referrals.  Now, is that a customer that you can afford NOT to rank in the top tier when it comes to your time and energy?  Of course not!  You’d be a fool to let someone like that languish on the back burner.

This client is your exception to the rule.

How about a client that you really enjoy working with who doesn’t take up a lot of your time unnecessarily, is usually content with the finished product you provide the first time and who is what you’d deem to be all-around “low maintenance?”  Isn’t that a customer that is worthy of your full attention in the relatively few instances that it’s needed?  Once again, you may just have yourself an exception.

The point is that while the 80-20 rule serves as a good overall guide for how to rank your customers when it comes to quantitative factors alone, it’s also just fine―in fact, it’s imperative―to give careful thought to who among them is the exception.  After all, being able to make decisions of this kind in a conscious and measured way—one that ensures a maximum return on investment of your precious time and energy—is what sets the truly successful entrepreneur apart.

Related Blog Posts
13 Dec 17 Posted by: Margaret Mallonée
in Marketing & Sales

We all know that in sales, time is money. These apps will simplify your life and give you more time to sell, sell, sell! Don’t miss these 15 Apps Every Salesperson Needs!

As we move into 2018, everyone is hypothesizing and publishing their choices for the best apps and ‘need to have it’ technology....
20 Nov 17 Posted by: Margaret Mallonée
in Marketing & Sales

Looking to boost your marketing game? Not sure what you need or which is best? Check out these Free Trial Marketing Tools You Need!

A big question many people ask is how do I upgrade my audience to reach more people? What platforms should I be using to get my content out into the world? We...
15 Nov 17 Posted by: Margaret Mallonée
in Marketing & Sales

We’re 10 days away from Small Business Saturday 2017! Are you ready for one of the biggest sales’ days of the year? To help you, we’re bringing you our Tips for Small Business Saturday 2017.

This year, Small Business Saturday 2017 will be on the 25th of November. That means in 10...
25 Oct 17 Posted by: Kevin James Culp
in Marketing & Sales

People love to listen to podcasts. They can get the information they need when it’s convenient. As a marketer, it’s a great way for you to share your message while...

23 Oct 17 Posted by: Margaret Mallonée
in Marketing & Sales

Want to improve your sales call technique? Check out our Best Sales Call Advice for Success!

Whether it’s a cold call, referral call, or warm lead, making a sales call can be intimidating. It’s easy to procrastinate on making a call by working on other projects. You may, from time to time,...
 
   

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
Read More


Premium Sponsor