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The Pareto Principle

The Pareto Principle

(1 min read)

The Pareto Principle states that for many events roughly 20% of causes produce 80% of effects.

It has been named after economist Vilfredo Pareto, who first stated that 20% of any nation’s citizens hold 80% of its wealth.

Pareto Principle could be applied to our lives as well:

  • 20% of roads in your city carry 80% of its traffic. Think about the last time you were stuck in a jam!
  • You wear 20% of clothes 80% of times. Your casuals / pajamas.
  • You eat 20% of food items 80% of times. A black coffee addict in the house?
  • On your phone / music device, you listen to 20% of songs 80% of times. Ah, surely this doesn’t come as a surprise.

Almost everything works this way.

These 20% roads, clothes, food items, songs and other causes that account for 80% of effects are highly crucial.

Especially if you’re an entrepreneur. Because then, there is a direct applicability to your business.

That’s because, you need to know How We Apply The Pareto Principle To Brand Communication.

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