This is a reference to Pareto’s rule which says something like 20% of this gives you 80% of that. It’s otherwise known as the 80/20 rule.
When I worked at Land Rover, our logistics department used it all the time to make stock decisions.
Here’s an example.
20% of your customers will bring you 80% of your business. (eBay know that, and we’ve seen them acting on removing some of the unwanted 80% recently.)
Conversely, 80% of your customers will bring you only 20% of your business.
So where would you spend your time? Working with the 80% or the 20% of your customers?
And… 20% of your customers will gripe all the time. 80% won’t. 😉
So the title of this post is a bit of a mind shock if you’ve never come across Pareto before.
80% of what you do won’t make any difference to your internet business. In actual fact, it’s probably closer to 95% or more.
So how do you know which is the best bit? Which is the bit you should be doing more of to get the best results?
I think the best answer to that question is “experience”. It’s only by doing everything to begin with do you learn how to sort the vital from the dead wood.
Once you begin to get a feel for it all and you start to see the light, it becomes easier to see how to improve things. I’ve had people write to me and tell me how important this or that is, when I already know for a fact it makes very little difference.
It might be important to them, but it’s not important to the bulk of other people.
But of course, you can only get to that stage if you DO things first. Planning and thinking is all well and good, but getting stuck in is where the money is.
Have you actually done anything today? The sooner you do, then the sooner you can sort out the 20 from the 80. Or the 5 from the 95. Or even the 1 from the 99.
-Frank Haywood
Frank,
I have a little exercise that I use when I’m coaching people. It’s quite an interesting one.
Answer the following questions honestly:
1) What 2 things could you do today that would make an improvement in your business?
2) If you did those 2 things, what benefits would you get?
I’ve found that people can *always* answer those questions when they spend a few minutes thinking about them. Usually, and quite funnily, it’s not even the really difficult stuff that they come up with.
So I then ask them this question: (scroll down to see it)
So why haven’t you done those 2 things yet???
I find it’s a powerful tool that makes people realize they have greater resources within them than they thought.
And it also points out that they don’t always need a big guru, or training manual to tell them what to do next. Sometimes, just sometimes, they just have to get up and do it.
Hey Frank,
Great post mate,
you know what im like about planning –
I actually plan time in to plan …
Anyone reading this — (im not crazy)
back to what frank said, 95% of the things you do online TRYING to make you money online will never make you money.
BUT – the problem is you need to first get out there and start doing the things
to learn what makes you money and what needs to be done …
… but doesn’t make you mmoney, THEN and only THEN can you really outsource the tasks that DO NOT make you money.
Its a pain I know,
but a profitable pain 🙂
I like to say,
you need to learn how HOW TO automate an automated business before you can automate one.
and it takes lots of failing,
TRUST ME 🙂
the great part is for the past 2 years me and frank have both failed over and over
but all the way through that 2 years we
both made ALOT of money.
I personally wen’t from 0 to over $100,000 in 365 days from alot of failing,
That is soooo cool !!!
I have frank to thank ALOT for helping me along the way …
I could have never done it with out this guy,
THANK YOU FRANK 🙂
so,
FRANK:
This is what im upto right now,
my goal for this year is $250,000 and Im way on target,
done over $100,000 in 7 months,
anyone reading thats not profit, but about 50% of it will be profit 🙂
Now ive launched my latest product
im going,
take the next two weeks offline.
and really get deep into my business
finding out my 5% that makes money
Im going to check out how Ive made any money over the past 7 months and find
out what I did to make that money.
the $100,000 this year has come from a VERY SMALL section of my business,
even though I have focused a TON of time
on other areas ????
so now im going to TRY and work out what the heck Ive been doing for the rest of the time.
a lodda crap IM SURE.
and get rid of it,
then im going to only focus my time on the stuff that made me my money,
Really try spend 200% of my time on there
thats double what Ive already been doing,
and 0% on the crap (sorry for wording)
Im going to be getting some more staff
onboard and outsource the tasks that dont bring in the money and never do then again.
(but im sure I will have stress having to baby sit the new staff ???)
but its all part of the overall master plan of running a million dollar business by next year,
and to think i was a newbie 2 years ago 🙂
thats cool right frank?
remember all the talks we’ve had about this … (now we are getting there mate)
so, whats good for you the reader,
im going to take a few days off and read some books to really get into the mindset
of making others do my dirty work whilst I make a ton of mulla and relax alot more,
books im reading this week are
the 4 hour work week
7 figure secrets
rich schefren’s business manifesto
and if I can get into it frank
the book
Good to great ?
folks reading this,
I recommend you take away the mind set to go out there learn how to set up an utomated business knowing you have alot to learn,
BUT have YOUR end goal in mind which will really help you fail forward FAST and continue to learn what makes money and what dont.
do you agree frank ?
I love this guy,
Peace
Alex
PS – im glad your mom is okay frank
PPS – thanks for the latest support dude
YOU ROCK … Im looking forward to promoting a few of your latest products in the coming weeks 🙂