The 80/20 rule… this is a real game-changer for business

July 8, 2024

I’ve recently finished reading a book by Perry Marshall “80/20 Sales & Marketing – the Definitive guide to Working Less and Making More”.

It’s based on the 80/20 rule – that 80% of our business results come from 20% of our efforts. In fact, Perry Marshall makes a good argument that this 80/20 principle applies in every area of life i.e. that it’s a “law of the universe”.

Of course, I had heard of the 80/20 rule previously. But this is the first time I’ve really seen anyone examine in depth how it can be applied in a truly radical (and game-changing) way in business.

Applying the 80/20 rule to Google AdWords

With the 80/20 rule still fresh in my mind a few days ago, I was looking at one of my Google AdWords campaigns. This particular campaign has been challenging. Results have been up and down. As I looked at the campaign through “80/20” eyes, it hit me clearly…. 80% of the results are coming from 20% of the keywords and ads.

So, what’s the solution? Well, in the past I’ve done what most people do. Be thankful for the good-performing 20% and then put all my effort into trying to improve the poorly performing 80%.

Now, it hit me, that’s all wrong. So, I took a radical step. I terminated all keywords, ads and ad groups except the top performing 20%. Then I chanelled the entire budget into the remaining 20%.

It’s only been a few days, but the results have been astounding. The cost per lead has pretty much dropped in half, and the number of leads per day has doubled.

Watch this space for more results as I begin to apply the 80/20 rule throughout my business.

3 thoughts on “The 80/20 rule… this is a real game-changer for business”

  1. I agree with this principle wholeheartedly.

    80/20 vision is something I stumbled upon and is something I’ve used quite intuitively over the past few months especially.

    Perry has bought great focus to it by fully extending it to reach into every area of life.

    If you stop those little ‘foxes’ from gnawing away at your ROI, the vine will truly flourish, and as you’ve seen your costs will halve at the very least.

  2. Great blog and I have the 80/20 Book by Perry marshall and have his Adwords and Facebook books as well. I think many business people would benefit from reading them, just so they are better informed when outsourcing this aspect of their business, Great articles on your website, awesome stuff

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