sly : marketing

80/20 Rule in Sales and Marketing

I have written about the 80/20 rule before, and applied it to how to use social media. This time, I’ll be even more brief, and focus on your clients.

80% of all your results, comes from 20% of your clients. This is true, most of the time, and for most businesses.

If you’re like most, you’re focusing on new clients, and you’re focusing on all of your existing clients. Chances are, that 90% of what you do, is a waste of time.

Instead, focus all of your efforts on the top 20% of your clients. Decrease your client load while greatly increasing your revenues.



11 responses to “80/20 Rule in Sales and Marketing”

  1. Dim says:

    I think to replace third party ads by sponsored listing ads is not fair for buyers. they should have a choice of vendors, and not one of those who paid more.

  2. i 100% agree to your statement 80% of all your results, comes from 20%. you cant sell everything to everyone!

  3. Hi Jens,

    Yes indeed, that is the rule that really works and I wish more of us could really follow it up – tough to really focus on just the 80/20 unless you are really into your own business and think like that.

    Lol…I agree about the waste of time too, though that happens if you are too much on the social networking sites. Other than that, building relationships with fellow bloggers, even if they are not your clients and don’t really fit into the 80/20 rule is what works for me, and perhaps most of us, isn’t it?

    Thanks for sharing. Have a nice week ahead 🙂

    • Hi Harleena,

      I strongly believe in 80/20, but it’s very difficult to focus on it. I still struggle to say no, and I find it hard to “put all my eggs in one basket”. Like Carolyn said, what happens if one of my big clients decides to do things differently and not use me anymore?

      Like you, I’m also building relationships with people not in my niche, but fellow bloggers that I keep learning from. This sure helps me a lot, but according to the 80/20 that’s “a waste of time” 🙂

      -Jens

  4. Hi Jens, Yes, that’s so true, but then again there is the fear of always putting your eggs in one basket. For example, Google used to bring me 80% of my traffic but then they changed their mind and my traffic plummeted. I built my traffic back up by spreading my efforts over other sites, such as Pinterest and StumbleUpon, instead of relying on a single source.

    So, Jens, if you focus on a small segment of your clients, do you risk being vulnerable if you lose a big client? Should you work on building up smaller clients to become bigger clients?

    Entrepreneurship fascinates me. Only the brave dare start their own business!

    • Hi Carolyn,

      You got a very interesting point. I used to receive a lot more traffic from Google, and after some adjustments in the Google algorithm, I have had to do things differently to get the traffic back. I used to rely on Google for everything, but not so much anymore.

      I haven’t thought much about the 80/20 rule when it comes to traffic, I’ve been doing it, but without thinking about it. Like you said, we’re being vulnerable. You certainly got me thinking Carolyn 🙂

      -Jens

  5. Tim Bonner says:

    When I was a manager in a pensions firm it was all about spreading the focus between the clients based on their fee income Jens.

    Sometimes it’s hard to give a higher priority to a client that brings in more money than a smaller client, particularly if they both want your attention at the same time.

    However, I completely agree that you have to focus more on the clients that will take your business forward. If that means letting some of them go, then that’s the way it has to be.

  6. Adrienne says:

    Hey Jens,

    I have to agree with you about that. If you focus on the ones you have right now and keep helping them as much as possible then they’re going to start spreading the word about you. That’s exactly what I’ve seen happen and to my amazement it’s been awesome. I think it can happen on all platforms including your blog, social media and in your business.

    You are so smart Jens, thanks.

    ~Adrienne

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe: rss | email | twitter | +