Search
Close this search box.
Blog » Business Tips » How to Use the Pareto Principle to Earn More Money

How to Use the Pareto Principle to Earn More Money

In a recent post, I made mention of how I use the Pareto Principle to determine how much money to spend on marketing.

For those who may not know, the Pareto Principle states that 80 percent of results come from 20 percent of effort. If that sounds more familiar, it’s because this principle is also referred to as the 80/20 rule.

I would say that for most of the time that I’ve been in business for myself, I didn’t follow this rule. I would hear it, but I just didn’t get it. I now know it’s because I needed to experiment a bit more and get more data.

Now that I’ve been in business for a while, I’ve begun applying this principle in multiple ways. And you know what? It does work. Here is how I’m using the Pareto Principle to earn more money.

Focusing on the coaching service that is an easier sell.

In July, I launched my first group coaching program. I earned about $10,000 in a couple of weeks. After seeing this, I realized it was an easier sell than retainer coaching.

So what does this mean? It means I’ll be focusing more of my efforts on selling the group program instead of pitching retainer so hard.

Granted, if someone is a better fit for retainer then obviously that’s what I will mention. But most of my email marketing efforts will likely be for group coaching.

Focusing on the highest grossing affiliate products and services.

Over the past year, I’ve been allocating some efforts toward increasing affiliate revenue. I now have a year of data to work with. The data is showing there are three affiliate products that perform the best.

When applying Pareto Principle, this means I should begin focusing my efforts on just those three products. I already know they perform well with my audience, therefore I should expend most of my marketing efforts there.

Focusing on the opt-ins that perform best.

I recently decided I would start going really hard with list-building. After testing several opt-ins throughout the years, I know there are three which work the best.

Again, by applying the Pareto Principle, this means I’ll be focusing most of my efforts on the three best performing opt-ins. I’ve started experimenting with this in the past week or so and my email list is increasing at a faster rate than ever.

Focusing on what brings in the most money.

On another note, my email list is also where I make the most money for coaching and info products. Which means my marketing efforts will begin to focus more on growing the list via opt-ins than sending traffic to my website.

Saying no to everything else.

Now that I’m clear on where the most results are coming from, I can use the Pareto Principle to say “No” to everything else.

I believe the biggest struggle for business owners is that we’re full of ideas and want to execute on all of them. This ends up biting us in the behind big time. By using the Pareto Principle, you can use your efforts on what will get you the maximum results.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
Millennial Finance Expert and Writer
Amanda Abella is a Millennial Finance Expert that helps people understand their finances and eliminate all bad debt. She wrote a book, Make Money Your Honey. It is a powerful guide on how to have a better relationship with work and money. You can actually start building an extremely profitable business around the things you’re passionate about.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More