CHAPTER 3 Pareto's Principle The 80/20 Rule — How to Sell Smart o Sell Smarter, Not Har , Not Harder
The Pareto Principle—often called the 80/20 Rule—is a powerful concept that applies across nearly every industry, including real estate. First observed by Italian economist Vilfredo Pareto in 1906, the principle states that roughly 80% of results come from 20% of actions. Pareto noticed, for instance, that 20% of his pea plants produced 80% of the healthy pods. He later observed that 80% of Italy’s land was owned by 20% of the population. This principle of unequal distribution appears consistently: • 20% of salespeople generate 80% of
sales • 20% of clients contribute 80% of profits • 20% of software bugs cause 80% of crashes • 20% of patients account for 80% of healthcare costs In real estate, this rule offers sellers a distinct advantage when applied wisely. Applying the 80/20 Rule to Home Selling In the home-selling process, the 80/20 Rule reminds us that the
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