How To Use The 80/20 Principle In Your Online Business.
Smart and intelligent people use 80/20 principle in their personal as well as professional life to enjoy maximum success. Vilfredo Pareto, a well known Italian economist, created a mathematical formula to describe the unequal distribution of wealth in his native country and according to him, 20% of the population owned 80% of the wealth.
After Pareto made his observations, many people observed the same 80/20 principle in their own areas of expertise and they accepted the fact that a minority of causes, inputs or efforts normally lead to a majority of results, rewards or outputs. With the evolution of time, many people started applying this rule in every aspect of their life and eventually,
80/20 principle has become an inevitable aspect of all business success stories.
How do you use the 80/20 principle in your online business? Take a look at these important aspects:
1) Understand the Pareto 80/20 principle deeply.
You do not need to learn rocket science technology to understand this 80/20 principle and it can be described as a simple concept that delivers excellent results. Everybody knows that time is money and your valuable time should be managed really well to achieve the expected results.
Time management experts always assert the true relevance of this 80/20 principle in making an online business highly successful and when you apply it properly, you can enjoy amazing results. In order to understand this concept deeply, you need to understand three basic interpretations of this principle.
a) 20% of your customers produce 80% of the results
b) 80% of your problems come from 20% of your customers
c) 20% of your activities produce 80% of your results
Now, this can be interpreted in regard to how you are spending your time. Since 80% of activities generate only 20% results, the remaining 20% of your activities produce 80% of your results. So it is always advisable to focus on the 20% to save your valuable time. For
example: if you are working 10 hours a day, 80% is 8 hours and 20% is 2 hours, and if you cut the 80% that does not deliver the expected results, you can come to the conclusion that you are working only 2 hours to produce the best results for your online business. So 80/20 principle teaches you how to generate optimal results with minimal
efforts and this rule asserts the importance of adopting a systematic method of approach as well.
2) Create an 80/20 principle activity log for a week.
You should create an activity log for every week and every day, you must list all activities for the day. At the end of the day, you can find how long it took you to perform all these tasks. After a week, you can rate each of those activities, based on how well it is helping to build your online business. This method of approach always helps you avoid
wasting time for unproductive activities like subscribing to unwanted newsletters, reading irrelevant blogs, answering emails throughout the day, surfing internet without a concrete plan and many more and, you can focus on more important activities that bring cash in the best manner.
3) Identify and focus on the best visitors, subscribers and customers
If you want to apply 80/20 principle in your online business, you should always focus on the best visitors, subscribers and customers (20%) because they are the ones who bring 80% results. Your primary goal should be to write sales pieces for them and it is a well known fact that you cannot please everybody who visits your site. The best method of approach is to focus on activities that help you build your own group of followers; in fact, a well-knit group of followers and buyers. The 80/20 principle method advocates the importance of spending quality time on finding out the features, benefits and emotional end results that your best customers are looking for and, by doing so; you will be able to focus more on the 20% activities that produce 80% results.
4) Learn how to prioritize your tasks
When you prioritize your tasks, you should take into consideration two important factors and they include potential profitability and time constraints as well. When you manage to identify the potential profitability involved with a task, you can always expect most efficient results and the time constraints should always be given the due
attention they deserve.
If you focus on these two important aspects while prioritizing your tasks, you can achieve better results with minimal efforts and time and, the remaining time can be used for other important activities.
5) Avoid distractions and give yourself strict guidelines
You need to follow strict guidelines to complete important tasks and unwanted distractions should be avoided. It is always advisable to make use of reliable online time management tools to find out where you become unproductive and such an approach protects you from committing the same mistakes again.
6) Focus on one task at a time
When you sit down to work, you should not spread your time between multiple tasks. Since you have prioritized your tasks, you can work on it until it is finished and this process is often known as killing projects.
7) Find out the most suitable social media platforms and focus
only on them Identifying the most relevant social media platforms is the key to build
your online business successfully and you can use a time management system and calendaring system to allocate proper time for your social media activities.
It is always advisable to automate certain parts of the social media with other types of quality online tools like CRM software as well. You need to have an agenda for your social media and this agenda should be kept in mind while engaging with the best visitors,
subscribers and customers in a daily manner.
8) Make use of Google Analytics in the best manner and follow good habits When you come to know about your traffic sources in a detailed manner, you can easily identify the best visitors and Google analytics always helps you learn about your traffic sources.
You can also follow good habits like creating projects based on the individual parts of your
business, creating daily checklists and taking the guesswork out of your business and so on.
Breaking down your tasks and, figuring out how you are building income and get traffic are the best ways to implement 80/20 rule and these simple and valuable tips always help you use 80/20 principle in your online business with utmost efficiency.