Advanced Strategy Tip for 80/20 Marketers

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Today, an advanced 80/20 insight that will put more dollars in your pocket, bypass the time wasters and advance you on your mission MUCH faster:

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What is "80" and what is "20" for your business right now? Take my 2-minute quiz and I'll show you where you'll get the highest compound interest on your time and money!

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About the Author

Perry Marshall has launched two revolutions in sales and marketing. In Pay-Per-Click advertising, he pioneered best practices and wrote the world's best selling book on Google advertising. And he's driven the 80/20 Principle deeper than any other author, creating a new movement in business.

He is referenced across the Internet and by Harvard Business Review, The New York Times, INC and Forbes Magazine.

12 Comments on “Advanced Strategy Tip for 80/20 Marketers”

  1. This makes sense where you have lots of products or customers ….. the cream always rises and some do better than others. But I work in a very profitable niche that consists of 309 customers nationwide … there are no more. And I can only work for one or two a year.

    Being government funded they all pay about the same …. so where is my 5%.

    Sure I could abandon my niche and find a new one …. but that risks losing my whole business.

    1. I’ve never seen a market where the Espresso Machine principle wasn’t in play. A minority of them want SOMETHING the others don’t, I guarantee it.

  2. Hi Perry! First: Thanks for Dublin! It was a great day. This video gave me valuable insights for my new venture (whatever it will be). It seems that it’s impossible to dig too deep into 80/20. I have a question for you. You talk about 80/20 becoming 95/5 or even 99/1, especially on the Internet. Richard Koch acknowledges that in his 80/20 book but writes that he thinks that nature (maybe he didn’t use that word, but anyway) wants to go back to 80/20. What is your take on that? Is that possible with Internet?

    1. I think nature does prefer 80/20. I think at some point 95/5 will create instability and fractures. One can envision all kinds of scenarios. Nobody knows which is right of course. But one massive cyberattack could radically change the landscape and peoples’ use of the web.

  3. This is interesting Perry.
    Would it be reasonable to conclude that the 80/20 rule follows the general level of inequality in a society?
    From your observations the rule is moving towards 95/5, which does seem to correlate to the contemporary level of inequality.
    But then would it better to go by the 99/1 ratio? As this organisations data suggests? http://inequality.org/income-inequality/
    Or does this have relevance for your ratios?

    1. The 80/20 rule IS the general level of equality in society. Late in the 8020 book I talk about this. 80/20 is Adam Smith’s “invisible hand.”

      US inequality isn’t 99/1, it’s probably 90/10. The middle class is disappearing.

  4. Hey Perry,

    Great video as usual and well timed.

    Here’s my understanding of it given my current position in my young startup.

    I have some customers, but not many yet. I’m building out a more back-end products as well, currently only have 1 offering.

    I feel like the erosion point comes after I have enough critical mass of customers and a few more products. Until them 80/20 basically doesn’t apply to my customer list (sure you’ll hate me for saying that) because I don’t have the volume yet. That said 80/20 (really 95/5) is critical to notice because it’s happening everywhere and drives everything.

    Oh how I want to get to the FUN past the erosion point!

    James~

    Thoughts on that?

    James~

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