The 20/80 Rule in Network Marketing

Today, I want to talk about the 20/80 Rule in Network Marketing.  I wish I could say that this was “my idea” but it’s not.  This rule stems from the Pareto Principle.  The Pareto Principle states that 20% of the things you do produce 80% of the results.  Here are a few real world examples of the 20/80 Rule:

  • 20% of the students in a class produce 80% of the problems
  • 20% of the salesmen make 80% of the commissions
  • 20% of the employees do 80% of the work
  • 20% of the people who attend an auction buy 80% of the merchandise

Once again, these are just a few examples.  Sure, these numbers might fluctuate a bit, but I’ve found them to be true.  I could even argue that the 10/90 Rule is more realistic than the 20/80 Rule.

When it comes to network marketing, there is what I call the 20/80 Rule of Network Marketing.  What does this mean?

  • 20% of your team members will produce 80% of your income
  • 20% of your team members will produce 80% of your problems
  • 20% of the things you do will be responsible for 80% of your results
  • 20% of your customers will generate 80% of your retail profits
  • 20% of your advertising will produce 80% of your results
  • And so on!

If this law is true, and I believe it is, then there are a few real key takeaways from this lesson.

First and foremost, you should spend 80% of your time with the top 20% producers on your team.  Work with the movers and shakers who are actually doing the work.  This one thing alone will free up a lot of your time and help you make more money in your business.

Next, you need to spend 80% of your time in your business working on the top 20% activities, which include prospecting, showing the plan, following up, training your team and getting customers.  All other activities are non-money producing activities and do nothing but waste time.

You also need to realize that 80% of problems will come from 20% of your team members. One of the best things you can do is avoid these people and don’t let them take up all of your time.  Instead, work with the top 20%.

When it comes to advertising in your business, make sure you track and test what you are doing.  For instance, if you have five ads, there’s a strong chance that one of those ads is outperforming the other four ads combined.  If you don’t track and test, you will never know that!

This might all sound like really simple advice.  It is.  But, just because things are simple doesn’t mean that people follow the advice.

I can honestly tell you that the 20/80 Rule of Network Marketing really changed my business for the better.  It’s so much wiser to focus on the small percentage of things that do work and produce the biggest return on your time and money investment.

What are your thoughts about the 20/80 Rule in Network Marketing?  Leave a comment below and let us know what you think.  I look forward to hearing from you.

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2 thoughts on “The 20/80 Rule in Network Marketing

  1. Greg Boudonck

    This principal makes perfectly good sense. Everything is a game of numbers, and the 20/80 rule sounds like some basic numbers we should always consider in network marketing, as well as other areas of our lives. I believe if I spend 80% of my time working on money making activities, I will see successful figures. The other 20% can be those items that need to be done, but do not show any type of profits.

    Very good post Chuck. Hopefully many people will gain insight from it.

    Reply

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