The Pareto principle (aka 80/20 rule) suggests that, for many events, roughly 80% of the effects come from 20% of the causes. Here’s how I maximized this to increase my income and work LESS at the same time - enjoy! Add me on Instagram/Snapchat: GPStephan
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Given the 80/20 rule, you generally will find that you spend 80% of your time chasing that extra 20% of result. In THEORY, you should be able to do 20% of what you’re doing now and still get 80% of the result.
So that’s what I did. I looked past all of my clients since the BEGINNING of my career and found the commonalities between the clients that produced the most income vs the ones that took up the most time. I found that I spent 80% of my time chasing little lease deals between $3000-$6000 per month that paid very poorly, and that was consuming most of my time. But even though my motto was “work with these people, eventually they’ll refer you more business which leads to the 80% of my income”… but I found that overall, those were the clients that generally didn’t buy after a few years and didn’t refer me business. Instead, I found my clients that were spending $8000-$30,000 per month were the ones that would end up buying and referring me the business that led to much larger commissions, not the lower end price ranges.
So what did I do? I turned down every lease under $8000 per month. I stopped going after those listings and I stopped working with those clients - that freed up 80% of my day. I then focused that remaining 80% of my time on meeting more clients in the $8000-$20,000 price point that were statistically more likely to lead to more income and more business. And that one difference alone worked…I made an extra $50,000 JUST from that one change, while also working less.
The next year, the same thing…but I took it a step further. I stopped taking listings that were overpriced. I stopped working with buyers who had unrealistic expectations that I couldn’t change. I focused my time on ONLY working with the people who were ready and realistic. By focusing only on those, it freed up more of my time to focus on meeting MORE people that fit that bill. And guess what? My income went up ANOTHER $50,000 per year, and I worked less. And the less I worked, the less stressed out I was, and the less stressed out I was, the better I did with my clients and the more money I made.
And using this technique is what led to over $550,000 in gross commissions last year without any prospecting, and without driving myself crazy.
First, focus on the area where you get the highest ROI. Either where you get the most done, make the biggest impact, or make the most income. There will almost always be an 80/20 rule at plays…from there, really narrow it down and identify what that it and WHY that is.
Second, identify where you’re spending 80% of your time chasing that last 20%. Find out where you’re spending most of your time…and make the decision to cut it, automate it, or outsource it.
Third, do more of what WORKS with your 20% output that generates most of your results. If you find that you get 80% of your business through cold calling, for instance…do more cold calling. If you’re in e-commerce and find that 80% of your income comes from iPhone cases…do more iPhone cases. Focus on replicating the 20% of your cause that leads to 80% of the effect. This is about optimizing as much as possible and working efficiently, not harder.
It’s about remembering that the minority of your efforts produce the majority of your results. Then identifying this and leveraging it to do MORE of what works, and less of what doesn’t have the best ROI. This frees you up with MORE time and by focusing on your 20% that generates 80%, you should be able to INCREASE your revenue or productivity rather quickly - while optimizing at the same time.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3