Tuesday, February 3, 2009

Also Work To Disprove The Pareto Principle


The Pareto Principle also known as the 80/20 rule is one of my favorite business principles. In a nutshell and how I apply to BANS is simple. I do not want 20% of my sites producing 80% of my income. I am always striving to get 50% of my sites producing 50% of my income. That of course would mean the other 50% is producing the other 50% of my income. As of the end of January, 35% of my sites produce around 65% of my income. This is about as low as I try to be. When one sector starts dropping, I always try to dedicate more time to get it back where it belongs. I consider myself the guy in the circus that tries to keep the ten plates all spinning on the sticks at one time. I try to rush over to keep spinning the plate that most looks like it is about to fall off the stick. The further away you can keep from the Pareto Principle, the more security you will have in case a catastrophe were to happen. At all times, you should know where these figures are and work in the sectors that need the most help. Now by no means am I advocating 100 sites, but if 100% of your income comes from just one site, you might want to investigate a few more niches. Whatever you can handle and manage correctly.

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