CHAPTER 4 The 80/20 Rule
In 1906, Italian economist Vilfredo Pareto made an intriguing discovery. He observed that 20% of the pea pods in his garden contained 80% of the peas. This simple observation led him to investigate whether the same pattern applied elsewhere. One of his earliest findings was that 20% of the people in his area owned 80% of the land. Through further research, he discovered that this ratio appeared consistently across various aspects of life. His findings became known as the Pareto Principle, or the 80/20 r 80/20 rule.
For example:
80% of your income comes from 20% of your work.
80% of a business’s revenue is generated by 20% of its customers.
80% of your value to an employer stems from 20% of your efforts.
BUYER’S STORY
When Vince and Sue were searching for a new home, Vince had one non-negotiable requirement—an ocean view. They toured numerous desirable properties but struggled to find the right fit. Some were overpriced, while others had obstructed views. After nearly a year of searching, they finally found an older home just a short walk from the ocean. 19
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