You may have heard about the 80/20 rule during a high school economics class, or a college level business class. While it probably didn’t seem relevant to your success at the time, if you are now in the MLM game and want to make it big then knowing what the 80/20 rule is, and how you can apply it to virtually everything you do in MLM is one of the best ways to increase your earnings with MLM and enjoy an overall high level of success.
What is the 80/20 Rule?
The 80/20 rule was formulated by professor of economics Vilfredo Pareto who was teaching and the University of Lausanne in Switzerland. While doing various research he noticed that 20% of the people in Italy owned 80% of the private real estate holdings. This meant that 80% of the citizens owned only 20% of real estate, a shocking reality when you take into consideration the socialist economic system that Switzerland, and so many other European companies utilize.
Upon further research Pareto noticed that the 80/20 applied to just about every area in his life. For example he noticed that 80% of the peas in his garden were being produced by just 20% of the available pea pods. This shocking revelation got Pareto thinking about, and he finally devised a definition for the 80/20 rule, which is as follows: “For many events, roughly 80% of the events are a result of only 20% of the causes.” There are thousands of examples of the 80/20 rule being used in business, real estate, MLM and numerous other activities in daily life.
How 80/20 Rule Applies to MLM
After reading this far you’re probably wondering how the 80/20 rule fits in with MLM and network marketing. In reality it’s very simple – 20% of the people in MLM are earning 80% of the profits, which means 80%, or 4/5 of the people in MLM are only earning 20%, or 1/5 of the profits. This phenomenon can help explain why so many people have negative attitudes towards MLM networks in general. Because 80% of the people probably barely broke even during their MLM venture, it’s no wonder they have negative attitudes towards MLM.
Overcoming the Odds: Defying the 80/20 Rule
Obviously your goals and intentions of joining any type of MLM company or network marketing opportunity are to earn additional income and help people by selling them products or services they will need. Being faced with the overwhelming truth of the 80/20 rule can cause despair, loss of confidence, and general hopelessness for anybody that was previously amped up and ready to get started with their MLM company or program opportunity.
Beating the odds and becoming one of the 20% in MLM that earns at least 80% of the income can be difficult, but entering this 20% class will ensure you are making as much money as possible. It takes hard work, knowledge of lead generation, motivation and dedication to make your way towards the top.
Now it’s your turn!
Do you use the 80/20 rule in your business? If so, how? Please leave your feedback in the comments section and I look forward to reading them!