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Originally Posted by ateamstupid
I understand the second part, but I don't think that's the 80-20 rule.
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the 80/20 rule is a marketing/business statement. It is common that 80% of your business comes from 20% of your customer base, meaning the other 80% of your customer base only contributes 20%....see below
Lets say you have this business and for year 2007 your gross revenue was $1,000.
Person A = $525
Person B = $275
Person C = $50
Person D = $25
Person E = $25
Person F = $10
Person G = $10
Person H = $40
Person I = $20
Person J = $20
As you will see, 20% of the customer (Person A and Person B) contributed to 80% ($800) of the revenue....