How to Apply the 80/20 Rule to Grow Your Online Business

What is the 80/20 Principle and what does it mean for entrepreneurs and online business owners? This lecture defines the 80/20 Rule and reviews it's history in economics, as well as 21st century examples and applications to the business world from the likes of Apple, Google, Facebook and Microsoft.

Is it really possible to quickly go from $3,000/month to making over $40,000 in real money every month from home? An Amazon Kindle publishing example of the 80/20 Principle is demonstrated, showing the massive gains that can occur in online marketing and sales from this and similar growth hacking campaigns.

Answers to the short pop quiz are covered, demonstrating the leverage that can be discovered in the smallest, most surprising places.

Business intelligence and analytics 101 -- or how the world really works. Richard Koch's "50/50 fallacy" is introduced, showing us how we can ramp up our productivity by letting go of 50/50 thinking.

Here we dive into how we can actually apply 80/20 insight to our business, whether we are seeking to create more value and make more money from home, online, or at the office. We learn how to identify areas of our business to scale up, and those to cut. We learn how to conduct 80/20 business analysis to acquire actionable business intelligence. Plus, we begin the discussion on outsourcing and delegation.

An example of 80/20 business analysis from Amazon kindle publishing, and the multipliers that can be discovered by thinking like a trained business analyst. Applications to business development, product development, and hiring or outsourcing are all covered.

Business development that works by focusing on the vital few products or customers that actually produce huge results. We discuss how we can achieve the goal of maximizing how much value we create (and consequently how much money we can make in online business), while minimizing the investment of time that is required by us as digital entrepreneurs.

How to match the business model to the market. How the 80/20 imbalance operates in: a) customer segments, b) salespeople, c) employees or team members we delegate tasks to, d) tasks we automate, e) online advertising and marketing campaigns,

Why personal productivity gains require us to eliminate the nonessential first, and scale up the essential second.

This productivity hack is used by tech CEOs and lean startups to eliminate recurring tasks that are trivial, but time-consuming.

Take action today by looking at your business analytics to find the 80/20 imbalances unique to your business or online marketing campaigns.

The leverage that can be gained by growth hackers when looking deeply at the 20% within the top 20%

How we oftentimes are throwing away 50% of our potential productivity or online sales potential by failing to block off the time necessary to do the most vital 1% of activities.

A theoretical demonstration of why some employees or virtual assistants are 16x more productive than average, or why some online marketing campaigns are 16x more profitable than others, etc.

A real-world example of 16x in an online publishing business.

Ignore the internet marketing gurus and "make money online" experts, and instead take the time to do some serious analysis of your business to apply this one crucial idea boost your advertising ROI.

Effective delegation & outsourcing to virtual assistants on Upwork and Fiverr starts with identifying (and rewarding) the best of the best. It works with GTD and other popular time management systems.

A visual look at the power law and leverage in action.

Traditional goal-setting and time management have their place, but real productivity starts with getting clear about what you want--and what you don't what.

This lecture covers how to find your "unfair advantage" -- whether in internet marketing concepts, facebook advertising, copywriting, niche expertise -- that will give your online business a massive (and sustainable) competitive advantage.

This lecture helps you find your 20% skill spikes to determine your own "core".

Personal productivity comes through "deliberate practice" and focus in one niche area.

What do Bill Gates, Warren Buffett, Steve Jobs and even Einstein all repeatedly cite as the key ingredient to their success? Plus identifying what your market needs or the value the world needs you to create, and how to be strategic about your point of entry.

This productivity hack can help smash the bottlenecks in your lean startup or online business and save you hours of wasted time and effort when making recurring decisions.

Parkinson's Law is now a well understood time and business management principle, but actually implementing it is often difficult for the stay-at-home solo entrepreneur. Some solutions that work are introduced.

How to find the digital entrepreneurship anomalies to learn from, and discover the great business ideas / business models that can be found by studying success.

Productivity for lifelong learners: How to separate out important and timely information that must be consumed now, from unimportant information that should be consumed later.

A friend of mine is a serious daily fantasy sports (DFS) player on sites like Draftkings and FanDuel -- maybe you have been following the news about them recently -- and found this document on legalsportsreport.com. We were both struck by how closely the numbers follow some of the principles we've discussed. It shows that the top 20% of DFS players have earned 86% of the Net Winnings in 2015 (~ 80/20) and the top 1% of players have earned 40% (~ 50/1). Meanwhile, the bottom 20% of players (part of the "trivial many") have earned just 0.4% of the Net Winnings. With the top players, we can see that there is a concentration effect that tends to occur (as with almost all sociological or economic phenomena) wherein players who have a little more skill or early success likely devote more and more time and study into winning in DFS --> they win more --> their bankrolls and capital grow --> they can play more games for higher stakes --> they win more....and the cycle repeats.