Please understand that this is not to say that the remaining 80% is unimport...

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However, while this is part of it, the 80/20 rule is about much more than that, especially in the world of business or marketing.

The Pareto Principle in the business world refers to the fact that 80% of a business’s profits typically come from just 20% of its customers.

Business owners who subscribe to the 80/20 rule know  that the best way to maximize results is to focus the most marketing efforts on that top 20%.

In marketing, the same principle applies stating that paraguay number data approximately 20% of marketing methods produce 80% of the overall results.

The calculation may not always be exactly 80% to 20% in every case, but the Pareto Principle can still be seen as inevitable.

Once you understand this, you can begin to use this understanding to maximize profits, increase productivity, and get a higher return on your overall time investment in your business.

What are some examples of the Pareto Principle in practice?

Vilfredo Pareto was an early 20th century economist.

He first came up with the 80/20 rule when he realized that 80% of the land in Italy was in the hands of only 20% of the Italian population.

Pareto later realized that the same rule could actually be applied to almost everything. For example, he realized that only 20% of the pea pods growing in his own garden produced 80% of the peas.