You hear about the 80/20 rule all the time, but a lot of people don’t really understand it or know how to take advantage of it. In this article, I’m going to explain the 80/20 rule, give you an example of it and then show you how YOU can make the most out of it. I think you will find this article quite informative.

Okay, so just what is the 80/20 rule? Well, essentially what it says is that 20% of the work accounts for 80% of the results. I used to wonder about that a lot until I started building a list and finally realized that this 80/20 rule was pretty close to on the money. Don’t expect the percentages to come out exactly to 80/20 but they will be close.

As an example, let’s take that opt in list. Let’s say that you have a list of about 1000 people. The 80/20 rule says that about 20% of that list is going to account for about 80% of your profit. So let’s say you’re making $5,000 a month. That means that about 80% of the profit you make is going to come from that list and that profit will be generated by about 200 people. That translates into about $4,000 of profit from those 200 people or $20 per person.

This is actually very close to reality for me except on a larger monetary scale. Every month I do my 2 or 3 email promotions and it never fails that the same people purchase over and over from that list and make up the same number of sales each and every month. The remaining 20% of my income comes from various other forms of advertising.

Great, so how can we make the most of this? Well, one very simple way is to segment that list of 20% into a separate list. This list will receive higher end offers because they’ve proven to you time and time again that they are your loyal customers. So treat them special. Make offers to them that you don’t make to everybody else. So if you have a product selling for $197, offer it to them for $147 and the rest of your list at the full price. Trust me…they’ll more than appreciate this.

You hear about stats like this all the time, and sometimes you have to take them with a grain of salt. But in this case, the 80/20 rule is one of those things that really holds true. The above tip is a great way to take advantage of it.

To YOUR Success,

Steven Wagenheim

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