Understanding the 80/20 Rule in Your Business

Editor | MLM Training Tips | Monday, July 13th, 2009

Are you familiar with the concept of 80/20?

The 80/20 Rule was first known as the Pareto principle. The basic idea behind it was that there is a “vital few and trivial many”, which means that 20 percent of something is the driving force behind 80 percent of the result. The concept can be applied to almost anything.

A good example would be a sports team where the star players are the force behind the team. The rest of the players serve as back up even though they are a part of the team’s success. There will always be star players that are the biggest contributors, but also back up players that contribute a lot less. The same concept can actually be pointed directly at your network marketing business as well.

The 80/20 concept can actually be applied to your MLM business in a few ways.

The 80/20 Rule can be applied to your downline because it’s a resource that can help your business grow. Say for example you have 100 people in your downline. Out of those 100 people you can be sure that 20 are going to account for 80 percent of your business. So that means that 20% of your downline will account for 80% of your income. And of course that other 80% will account for only 20% of your income.

Now you’re probably wondering what are the 80 members of your downline doing. Well, they’re working too of course. They might not be at the top as a master producer yet and they may never be, but that doesn’t mean they should be tossed to the curb. It just means that there’s some work to be done. And besides, those 80 downline members are extremely important since you need them to find your key 20!
 
Plus, it’s not always best to assume that your top 20 producers don’t need help or coaching. You may think they’re doing great, however it’s still your job to provide them constant support, encouragement and training when they need it.

So where does that really leave the 80% who are a little behind?

Well, now’s the time to kick butt and get things going with these guys and girls. Always remember that some of them are going to be a little slower at starting than the rest. So it’s going to be up to you to keep in touch with them and give them as much training and support as possible. Most importantly you should remember that those who start slow today could be tomorrow’s biggest and brightest star.
 
Now it’s time to apply the 80/20 concept to your own general work practices meaning that all of the work that goes into your business –only 20% will account for 80% of your income. You are responsible for figuring out and focusing on the key 20%.

One of the best ways to do this is to take the time to find out what’s working, what could work better and what’s a waste of time. If there are things that you find are really not necessary, you don’t care for, or you can’t do yourself, think about what you can do to change those negatives into positives. Maybe you should consider the idea of hiring someone to help you.

Sometimes it helps to hire someone because it allows you to increase the overall productivity in your business by turning the things you hate into ones that makes a difference.

If you find something that has turned into a waste of time, you may want to ask yourself whether or not you should just throw that task out and focus instead on the things that are really working for your business.
 
By applying the 80/20 concept to your downline and your own work habits, you’re well on your way to creating a super-highway for success.

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