80/20 Rule of Marketing: How To Use It To Dramatically Grow Your Business

– There’s this famous
guy, I’ve read about him, I don’t know, at least a
dozen times, he’s quoted in a lot of different
places, he’s rather famous, a guy named John Wanamaker. He said this famous quote,
and I think he actually said it in the 60’s. I’ve seen a couple
different references to it. He famously said, “Half
the money I spend on “advertising is wasted, the trouble is, “I don’t know which half.” That’s what he’s known for that. And I’m gonna say John
here is being an optimist. Very optimistic when he said that quote, because in all my experience, and I’ve literally probably spent close to a million dollars of
clients’ advertising money in over my 10-year period of time, myself, that I’ve had the authority
and signed off on. And I’m gonna say that
he was even more wasteful than half, because I’m
gonna say in the reality, a ton of advertising, 80% of it’s wasted. See, the point that John didn’t know is by not being able to identify which half was of any value to him,
he was wasting it all. One of the biggest keys you want to do, is you want to find out
who your clients are, and then you want to take 80%
of your money and resources, and you want to pour
it back into that 20%. If you can do that, then what happens is, is you can improve your
ROI, not just four times, if you look at the math and everything, you can actually improve it 16 times, by focusing on the right clients. And those clients are the quality clients. At the end of the day,
John’s famous quote here was, he was missing out on
96% of the opportunity. Just by what he was doing. When you think about
it, this ties back in, you need to focus 80%
of your time and energy on the top 20%, and this
will increase your ROI by 16 times. So if you’re writing notes, this is one of the key points to write down. It’s another one of those, I know it, but are you doing it? Is selling to the right person, or building the relationship
with the right person, is the most important thing. It overrides every sales method, every marketing technique,
every social media technique, every negotiating technique. It is the foundation. You need to figure out and start selling to the right people or
building the relationships with the right people. That is the key. You need to identify
and find out if they’re a good fit for you. And then what you need
to do is spend that 80% of your time, your
energy and your resources building a relationship or
doing business with them. Don’t get distracted. In our modern day and age you
can get distracted so easily. If John had known, you know
that quote from before, if he had know that, if he
had focused 80% of his money on the right 20%, he
would have been improving his return 16 times. What he should have done,
which he wasn’t doing, is he should have done
some sort of advertising where he was getting people
to put up their hands in some sort of way, and
say hey, I’m a prospect. In some sort of format or another. And then, from then,
he would need to create his own qualifying
process, whatever it was. I have to look at what his situation was, it’s different for everybody. And then once he qualified
them, the higher-level clients, then he should have been
focusing the majority of his energy on his clients there, and his resources. And what we say as a rule,
is if you can focus on that top 20%, that’s where you’re
gonna get your 16 times return. That’ what I do. Most of the times I only
work with, on average, two, three, five clients at the most. And I’m looking for those top clients. That’s why I can work with
those clients for 10 years. Because they are part of
my top 20% of clients, that’s the key. There’s just that line
again just saying there what you’re seeing, that’s just the key. Reality, you can triple
your income when you spend 80% of your time in front
of the right people. Most of the people I talk
to and everything else, and the reality, they
are spending just way too much time with the wrong people and they’re not spending
any time figuring out how to qualify, come up with a process, or anything else, that
will actually put them in front of their right clients. Let me tell you a quick story. One of my clients sells
a product or program. It sells between $1,000
and $2,000 depending when he’s selling it,
where he’s selling it. What we find out, is 20%
or less of his prospects ever buy this program. The bottom line is they’re
voting with their wallet and their credit card. They are qualifying themselves. You notice that process or pattern, they got to be able to qualify themselves, they are qualifying
themselves of the program. What he does, or what I’ve taught him, and he’s not perfect, his
team focuses 40 to 50% of the time, it’s not 80,
but 40 to 50% of the time, focusing and working on
those 20% of clients. They’ll talk to them, they’ll call them, they’ll build relationships, they’ll do whatever they do. A lot of those clients do
not buy another program for a minimum of one year. Sometimes, two years. But when you look at the mathematics and everything else, it
is completely worth it, because what they’ve done,
or what we’ve figured out, is that we will focus
50 to 80% of our energy on the right 20% of the clients, and those are the right
20% of the clients. You’ve got to figure out your own process, but you need to identify
who are your right 20%. That is the key from that standpoint, is figuring out which ones are those. And then, at that point,
you can start figuring out how to deliver more value to them. Now, do you see, if
you’re a product pusher, how this can be a challenge? Because the reality is, you
haven’t built a relationship with a client. You’re not differentiating those clients in any form or any way. How you gonna be able to identify who your top 20% clients are? And then when you’ve
been a product pusher, how you gonna switch
from a product pusher, all of sudden into a relationship? It’s very challenging. You’ve got to start from day one taking the relationship, and just a sifting, or a filtering process,
so you can find out who your top 20% are.

3 thoughts on “80/20 Rule of Marketing: How To Use It To Dramatically Grow Your Business

  1. "You should focus 80% of your time on your top 20% clients. building relationship with the right person is the most important than anything else!" 

    Comment below and share your thoughts!

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