During this episode Karim talks about one of the life changing concepts, discovered by the Italian economist, Vilfredo Pareto: the 80/20 law.The law states 80 % of the results we’re getting or outcomes we have come usually from 20% of the causes that can lead to those results. How this law works and how we can apply it on our life and business to maximise our profit.

— Transcript —

Hey what’s up everybody, this is Karim Amri. Welcome to Coaching Secrets Podcast.

In 1906 the Italian Economist, Vilfredo Pareto, introduced the Pareto Law, knows also as the 80/20 law , the law of vital few or the principle of factor sparsity.

The law states 80 % of the results we’re getting or outcomes we have come usually from 20% of the causes that can lead to those results.

Today we’re gonna talk about the 80/20 law and how to apply it on or coaching business.

This laws was in fact a great revelation as since that day, we can see it everywhere and everything we’re doing, here’s below few samples:

80% of the work in an organization is done by 20% of the employees

80% of the sales value is made by 20% of the customers

80% of the traffic is happening on 20% of the roads

80% of the days we put 20% of the clothes we have

80% of our TV watching time is spend on 20% of the channels

20 % of the mobile network providers are serving 80% of the subscribers

80% of the shop returns, come from 20% of the customers

80% of the pollution is caused by 20 % of the factories

And the list is long, in fact it’s in everything around us.

It may be not exactly 80/20, it can be 85/15 or 90/10, but the distribution concept is always right, few causes are behind the majority of the results.

When it comes to us, as coaches, considering this law when dealing with the different areas of the business can have great impact.When we know that 20 % of our existing clients are behind 80% of our income, we need simply to have extra care of these 20%, this doesn’t mean reduce our quality and care about the others, but there should be special care of the top 20%, to consider how to retain them, how to craft a special offer when renewing their contract, and so on

When we know that 80% of our customers are using a specific SM Channel, like LinkedIn as example, we need to focus our marketing campaign and spend on that specific channel.

When we find that 80% of our clients are choosing 20% of the weekly schedule available, we need to study how to manage our schedule to be able to serve them best in that time.

The whole concept is around using this law in our benefit in a way to maximise the outcome, from small actions.

That’s all for today!

Thank you all for listening, keep growing, and bye for now.