When it Comes to the 80/20 Rule, the 20 Percent Still Matters
It’s commonly known that twenty percent of our client work lead to eighty percent of our revenue. Less leads to more.
When we recognize this, we easily lose sight of or dismiss the eighty percent that only generates twenty because it's not worth our time. But this larger group providing a smaller percentage bridges the gap between surviving and thriving. Or, from Good to great.
Whales eat thousands of pounds of krill, plankton, and other small life forms each day. This source of food is extremely small and weighs almost nothing. It’s only through eating vast numbers of these little creatures that whales get the intake they need to live and grow. And the same is true with our earning potential.
Take for example my client workload from January of 2018. Three of my clients made up 95 of my 122.25 hours for the month. They were the twenty that earned me eighty percent. Seven other companies, the eighty that made up the other 27.25 hours, generated $2,400 dollars. Not tapping into both changes a $10.7k month into an $8.3k month.
That's a big deal for me. As a freelancer or small business owner, $29k/year is no small sum. That extra amount allows us to accelerate our debt, pay down our minivan, and in the future, make long retirement savings strides. The diversification of income also minimizes our financial risk.
The key to long-term success requires the belief that every dollar matters. Because for every thousand dollars, is one thousand individual dollars. Each one makes a difference, and the many small amounts quickly add up to big ones.
Prioritize the eighty percent, but don't neglect the twenty.