The New Rule 64 4 - 80 20 Rule - Pareto Principle

The New Rule 64/4

Why you need to forget 80/20 rule to get killer sales

Vilfredo Pareto, the Italian economist, discovered the 80/20 principal in 1897, which is now referred to as Paretos principle.

He discovered that 80 % of the output from any activity results from 20 % of the inputs; 80 % of the consequences result from 20 % of the causes and 80 % of the result comes from 20 % of the efforts.

To extend this logic further:

  • 20 % of the customers contribute to 80 % of growth.
  • 20 % of services account for 80 % of turnover.
  • 20 % of employees account for 80 % of productivity.

The opinion of 20 % defines the society. The output of 20 % of the population defines the economy of our country.

But we need to forget all this. In today’s hyper competitive world-this is not good enough.

Perry Marshall, Google and social media expert, has given an innovative interpretation to this concept in his immensely readable book –80/20 Sales and Marketing.

Perry Marshall has taken the Pareto Principle to the next level.He found that the Pareto Principle is exponential! We already know that 20% of your customers represent 80% of your revenues. What Marshall found is that, within that initial 20%, the 80/20 rule also exists.

Meaning that the top 20% of the top 20% of your customers (or the top 4% overall) represent 64% of your sales.

Imagine, your top 4% represents 64% of your sale.

Hence, this 80/20 rule has acquired a new meaning in modern business.

Most of the organizations and particularly sales Managers are obsessed with working with under-producers and non-performers to improve their productivity.

Regular training programmes are conducted and HR policies are changed every quarter to create an environment, which is expected to motivate lousy employees.

At the same time, top performers go unattended and their performance is taken for granted. The easiest way to lose your top performers is to ignore them in favor of trivial many.

The new 64/4 % thinking is the secret of achieving more with less.

Focus on strong performers and make them stronger. Start celebrating exceptional productivity, instead of raising average performance.Reward excellence in a few stars instead of wanting to raise the average productivity in many.

Do not waste too much effort and time on unmotivated, under performers, which will yield very little in return.

Transform your thinking. Revamp your outlook.

Allocate your resources from unproductive MANY to productive FEW STARS.

Your effectiveness will depend on how you manage and control this 4 %.

Focus on the top 4-5 % and balance everything in your life will be taken care of

#Branding #BrandStrategy #reversemarketing #MarketingConsultancy #ProductLaunchSuccess #MarketingTips

Hemant Mishrra

About the author: Hemant is the Founder & CEO of branding and marketing firm ”Neeti Brand Accelerator” in Mumbai. He is a brand strategist and has worked with more than 150 brands during last two decades. He is also mentor and coach to SMEs and startups. You can visit the website You can contact him at

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