The Empirical Business Law Which Nobody Can Explain Makes You Money

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This imbalance in the Universe can help you

As a reader of this blog, you’ll undoubtedly have noticed that, while posts mostly focus on business (small), the touch-points across a multitude of ‘spheres’ are depicted throughout thousands of posts.

These spheres connect you through business, life, personal, family, friends, groups and time/space philosophies. That’s because we are all connected in this way. And, if you are solely thinking or acting on one specific plane (for example, just thinking about money) – you have not grasped the full beauty of your own power in this world.

And, if you are armed with laws / rules and knowledge that our universe accepts and responds to well, you’ll be so far ahead of the curve, everybody else will be wondering what you are doing.

One of these laws were discovered (but not fully explained) over a 100 years ago, in 1897.

It’s a law, if followed, understood and applied – that will affect EVERYTHING YOU DO – and in a POSITIVE manner.

You’ll get more money, fame, wisdom … whatever you choose to focus on.

An Italian economist was looking at the patterns of wealth and income in nineteenth-century England. He found that most income and wealth went to a minority of the people in his studies. No too surprising, perhaps – but two other facts really intrigued him.

There was a mathematical relationship between the proportion of people and the amount of income or wealth that this group enjoyed. In other words, 20% of the population enjoyed 80% of the wealth.

This pattern of imbalance was constantly repeated across any data referring to different time periods and countries.

This Italian economist was Vilfredo Pareto.

But, it wasn’t until 20+ years after his death (in 1923) that George K Zipf (in 1949) discovered the “Principle of Least Effort”. This says that resources (people, goods, time, skills, or anything else productive) tended to arrange themselves so as to minimize work. 20-30% of any resources accounted for 70-80% of activity related to that resource.

Why is this important to you?

For one – if you are focusing on growing your business with products, services, staff – now is the time to do the 80/20 test. For example, do what IBM did in 1963 (one of the first corporations to use this model by the way). They discovered that 80% of a computer’s time is spent executing about 20% of the operating code. It rewrote the OS to make the most used portion 20% very accessible and user friendly – making the computers more efficient and faster than competitor’s machines at the time.

The message is that you can impact your daily lives and improve it by thinking about, and applying the 80/20 law. You can be more effective and more happy.

In my business, I have 20% of clients generating 80% of the revenue. These clients are the BEST clients, and the focus is on growing that type of client base. This is a small step in the right direction, and it’s taken (too long) a while to get this model into place.

What can you do in your life and business today?

Look at EVERYTHING with the 80/20 principle glasses on, and start shifting resources, money, etc – to drive home the massive receipts you’ll get from implementing it.

And, yes – while the academics have tried to explain this law of “imbalance”, nobody knows exactly why it works the way it does. But, it’s profound. Just consider it “more power to you” for reading this post.

About 

Entrepreneur Magazine says Jon Rognerud is one of the most sought-after SEO and Digital Marketing Experts for Small Business. He is famous for his high-return and passionate approach to optimizing websites and integrated marketing solutions that brings process, profits and brand loyalty...without wasting time. His brand NEW website optimization book, "The Ultimate Guide to Optimizing Your Website" from Entrepreneur Press/McGraw-Hill is in bookstores now. Act fast, and get a free gift here. Jon on Google+. To receive future updates, Click HERE to subscribe to our mailing list

About The Author

jon rognerud

Entrepreneur Magazine says Jon Rognerud is one of the most sought-after SEO and Digital Marketing Experts for Small Business. He is famous for his high-return and passionate approach to optimizing websites and integrated marketing solutions that brings process, profits and brand loyalty...without wasting time. His brand NEW website optimization book, "The Ultimate Guide to Optimizing Your Website" from Entrepreneur Press/McGraw-Hill is in bookstores now. Act fast, and get a free gift here. Jon on Google+. To receive future updates, Click HERE to subscribe to our mailing list

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