After looking closely at my business over the past few weeks and noticing something extremely important, I've managed to increase my weekly income by an extra $300-$500 (that's an extra $15,600 - $26,000 per year) - and it's all down to this ONE weird strategy...
In many kinds of different established businesses (including online ventures), there is an "80-20" rule.
Also known as the "Pareto Principle", this applies to many different areas of your business, and shows where you can make the MOST improvement with the LEAST amount of effort.
- 80% of your income comes from 20% of your customers
- 80% of your complaints come from 20% of your customers
- 80% of your income comes from 20% of your efforts (IMPORTANT!)
- 80% of your sales come from 20% of your products
- 80% of your sales are made by 20% of your sales staff
- And so on!
... So how do you use this data to your advantage?
This data creates a HUGE amount of opportunities for your business's improvement, which are all contained in 2 main strategies...
1) Increase The Effectiveness Of What Isn't Working
As 80% of your income usually comes from 20% of your efforts, it's safe to say that 80% of everything you do on a daily basis isn't resulting in any kind of profit and/or growth.
Be honest with yourself here.
For example - checking emails every 10 minutes, checking commission stats every 5 minutes, spending hours on Facebook or Twitter "networking"...
... They all don't get any direct results.
So cut them out of your day (or outsource them if you have to), and replace them with other activities which actually get real results.
Not only will your productivity skyrocket, but your success will happen a LOT faster.
As another example - going back to our earlier statement, "80% of your complaints come from 20% of your customers", just find where that 20% segment of unhappy customers is coming from, and put in more effort to make them happier.
Maybe it's a specific product which isn't explained well enough, leading to confusion and frustration?
Maybe it's one of your affiliates sending you traffic from a source containing particularly "angry" people?
Maybe you should ask them why they're unhappy, then make improvements based on their feedback?
... It's all about improving, tweaking or abandoning what's currently failing.
On the other hand, another great way to get more results is...
2) Concentrate More On What's Already Working
If you have something which is currently working for you, why continue to do something which isn't working (in the hope that 2 years down the line, things will suddenly become magically different).
It seems pretty obvious, but I get countless students who spend all their time trying to be "innovative", instead of focusing on what actually works and getting monetary results.
And that's the way to making a huge income from any business - only focus on profitable activities. Everything else is secondary (or can be outsourced).
For example -
80% of your sales are made from 20% of your products, right?
So imagine what kind of income you'd earn if those other failing products were taken up a notch, and made as much money as your main "20%" product (which produces 80% of your income)?
Just increase the conversion rates of your products which aren't doing so well (by using a copywriter or split-testing different elements), then add more traffic to them.
"Ouila"! An instant pay rise 🙂
It may seem like a confusing concept right now, but hopefully this simple activity below will get you some better results...
I want you to mind map your online business, marking down which activities are currently getting you the most results, compared to the effort you put into them.
Once you have this mind map complete, re-read this blog post, and implement what I've taught you.
Let me know your results, as I'm 100% sure this will help you 🙂
P.S. What is your "20% effort" which gets you the most results? Leave a comment below...