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The 80/20 Rule…is it working for you?
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TeamMLMTheGame
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Joined: Tue Feb 5th, 2008
Location: Ventura, California USA
Posts: 24
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 Posted: Tue Apr 29th, 2008 02:56 am

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You may have very well heard about the 80/20 rule, it is a common topic of discussion among savvy marketers everywhere.

Have you noticed that 80% of your business is likely caused by the work of only 20% of your downline members?

The 80/20 rule does not only apply to sales and marketing, it is a rule of life that interestingly shows up in just about everything you do.

Let me give you some other examples, 19% of people in the world have cars, 81% don’t.  20% of the people have 80% of the wealth in the world. Even at a micro scale of the Forbes 400 list, the top 2 have more wealth than the next 8!

This rule is the reason why the rich get richer and why winners keep winning.
Most people have heard about it, some have noticed it, some have studied it, and few have been able to decipher it, and change things they are doing to positively affect new outcomes.

This rule will work for you or against you, it is never neutral. The cold truth is that if you’re not where you are in your business today, this rule is probably working against you.

I can’t take full credit for these ideas, Perry Marshall talked about many of these things on a teleconference today and is soon coming out with a course to teach people how to best utilize the 80/20 rule.

My purpose of this is not to sell his program, it is to open this topic up to you, what ideas do you have in regards to taking advantage of this 80/20 rule for the profession of network marketing?

Please share…

Last edited on Tue Apr 29th, 2008 02:57 am by TeamMLMTheGame



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jnapier
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Joined: Thu Mar 22nd, 2007
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 Posted: Fri May 16th, 2008 09:24 pm

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80% of the results come from 20% of your activity.  So, what should you do.  I've found that spending 80% of my work time (Currently 2-4 hours a day) marketing, 10% traininig and 10% on conference calls works best to get results.

Jay NaPier



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John Stafford
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 Posted: Fri May 16th, 2008 09:58 pm

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Hello,

I focus most of my efforts on prospecting and

recruiting, the rest is spent on training my

team and doing three way calls.

 

The rest gets kicked to the bottom for eventually,

when I get around to it.  Simple time management

system right?

 

John


 

Last edited on Fri May 16th, 2008 09:59 pm by John Stafford



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PMHayes
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Joined: Sun Mar 30th, 2008
Location: Charlotte, North Carolina USA
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 Posted: Tue May 20th, 2008 10:15 am

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I wonder if it applies to recruiting prospects. If 80 percent of the people we talk to about our business or products will not join, or buy, then to get 20 do we need to talk to 100? Now, it may take talking to 1000 to get 200, or 10000 to get to 2000, and it may take awhile for the averages to catch up, but hey, we always say this is a numbers game. Enrique Garibay says you have to talk to a lot of people to succeed, and if you are not sponsoring or selling to people it's because you are not talking to enough of them. You may not get 20 out of each 100, but if the 80/20 rule is immutable, as the above post suggested, maybe it will eventually catch up. I don't know, just a thought.

Last edited on Tue May 20th, 2008 10:15 am by PMHayes



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sublime45
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Joined: Mon May 19th, 2008
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 Posted: Tue May 20th, 2008 03:27 pm

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I agree with PMHayes about it being a numbers game, but I believe that so many people have a "bad taste" from a failed MLM that they won't even give a new opportunity a shot if it even smells like MLM from a distance. 

On the 80% / 20% rule - I don't think it's a rule, but more like a "rule-of-thumb" just to get an idea across. 

People who use it are generally trying to explain how the numbers game works and how only 20% producing passive income for you, or 20% prospects converting into buyers, or 20% doing anything is profitable for you. 

I also hear it a lot when people are talking about the "rich get richer..." or a small group of people controlling the wealth.  This may or may not be true (I guess it depends on whose statistics you believe...89.5% of all statistics are just made up anyway :D). 

The point is that I want to be in that 20% that controls the wealth and if it takes me talking to 100 people to get 20, 10, or even 5 people - it's still worth it. 

- Sublime45



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