The 80/20 Rule. If you have never heard of it before then you're going to love what it can do for you.
If you have heard of it then you know its actually called Pereto's principle. The principle that says 80% of your results comes from 20% of your efforts.
Once you understand this principle and actually apply it, your life will change. Mine sure did once I figured out how to hack the 80/20 rule into my everyday life.
Here's a story of how I use it and what it means to your business...
The other night I was giving my daughter a bath.
As the water was rushing out of the tap, I asked her to put her head under it to get it wet so I could shampoo it for her.
Just as I was about to bend down and help her with her hair, I put my foot down between the tub and the toilet.
The floor was soaking wet.
Man, do I ever hate stepping on a wet floor with socks on.
Instantly I thought my daughter must have poured water out of the tub and on to the floor when I stepped out of the bathroom a minute earlier.
I asked her about it and, of course, she denied it.
Now you have to know something about my kids.
They LOVE the water.
The love taking long hot showers or playing in the bathtub.
And when they take a bath there always seems to be water on the floor outside the tub.
So you can understand why I was a bit dubious about her response.
So I cleaned the water up.
Then finished washing her hair and letting her have a nice long spa-like soak in the tub.
I thought that was the end of it.
Later that night as the kids were going to bed, one had to use the toilet.
I happened to walk into the bathroom the moment one of my boys flushed the toilet.
That’s when I saw it.
Water flowing out the base of the toilet and all over the tiles.
The wax seal under the toilet was wrecked.
Now I had no choice but to get the toilet fixed.
Right away I was faced with two choices: hire a plumber or do it myself.
Luckily I checked YouTube to see if I could verify if indeed the wax seal was compromised.
And it was.
As luck would have it, the first video I watched had a plumber use a product that was a wax-less seal.
As soon as I saw that I realized fixing the toilet was something I was going to do. I could save myself the two to three hundred dollars by not hiring a plumber to do it for me.
It was only going to take me only a couple of hours.
A couple of hours that I can use as a teaching tool for my kids.
Now there's something you need to know about my business and how it relates to this water leak.
I have set up my business to be extremely efficient.
I only concentrate on doing three daily tasks.
These three tasks happen to be the 20% of my business that generates 80% of my revenue.
And once those three tasks are done, I am finished for the day and can do whatever I want.
Like fixing things around the house and have my kids help me so they can watch and learn how to do it too.
I’m not stressed.
I’m not pressed for time.
I’m not worried about making sales.
Because when I take care of the three main things in my business every day, I end up with sales, time and a stress free business.
What are the three things I only do in my business?
I communicate with my customers and prospects EVERYDAY.
I create content everyday.
I go out and attract new customers to my business everyday.
Once I am finished those three things, my day is done and I can do whatever I want. It’s a very simple system and extremely profitable.
In the past things used to be more complicated with a lot of moving parts to take care of.
Too many parts actually - and it got in the way of me being able to make money.
So I decided to strip it down to the essentials.
Strip it down to just three activities.
One of which was to communicate with my customers and prospects every day.
Just like I am doing now with you.
I know to many people this seems counter intuitive.
You’d think the more you communicate with your audience the more likely they will get pissed with you.
I used to think that way.
But you know what I found?
I found that if you talk about what is important to your customer’s world, they will never be bored with you.
Actually it’s the contrary.
They can’t get enough of you.
So communicating is one of the main pillars of my business.
It’s one of the best ways I use to KEEP the customers I have.
And the more customers I keep, the less I have to worry about finding new ones.
Because I am always finding & creating new products for them to make their lives more abundant.
And who wouldn’t want someone like that in their life?
You may think your business is different.
That you can’t strip it down to just three things.
You may be right.
Your business may have a few more parts.
But what I can tell you is…
…if you only concentrate on the 20% of your activities that earn you 80% of your revenue, you’ll make a lot more money.
And what I have found is no matter what business you are in, communicating with your customer is a powerful money making tool.
Because it’s one of the best ways to keep them as your customer.
To keep your name permanently in their heads.
To keep them buying from you.
Want to know the best ways you can start communicating with your customers?