Pareto's Principle or The 80/20 Rule

Hello again!

Thought I’d share something that I learned a couple of years ago that has made a big impact on how I work and how I coach agents to become more effective.

You may have heard of the 80/20 rule or the Pareto Principle, also known as the law of the vital few. This law states that 80% of results come from 20% of the inputs. You can see this in agriculture, stock markets, and work forces.

How is this important to you? Whether you know it or not, probably 80% of what you do is NOT effective in adding to your bottom line! This can be a hard pill to swallow for many people – it means that you might actually be wasting your time on activities that do not make you any money. Quite counter intuitively, it means that you can be more effective by doing LESS!

Instead of trying to do everything, focus on those activities that actually provide some kind of return on effort, time and money. Everything else should be eliminated from your schedule. If there are things that still need to be taken care of, but you are not effective in completing them, hire someone else to do them! Your time is worth $300-600 per hour when you are getting contracts signed; for tasks that can be hired out for $20 per hour or less you should be looking for someone else to do them!

What will you ELIMINATE today?Not sure what can be hired out? I have a list that I’d love to share with you! Drop me a line and I’ll send you a copy or we can grab a coffee or tea and chat :)

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Doug Lytle

Doug Lytle

Branch Manager
CENTURY 21 United Realty Inc., Brokerage*
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