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The Pareto Principle and the 1% Rule of Internet Culture

The Pareto Principle and the 1% Rule of Internet Culture

The following article outlines two interesting mental models - the Pareto Principle and the 1% Rule of Internet Culture. Both of these have connections with each other, and are of interest to anyone in Marketing & Advertising.

The Pareto Principle 

This model (often called the 80/20 rule) is designed to help you realise that the majority of results come from a minority of inputs. In other words, most things in life are not distributed evenly.

It's called the 80/20 for that specific reason - 80% of the effects of something come from 20% of the inputs or causes. 

For a business manager or entrepreneur, this principle can appear in a range of forms. Examples include:

  • 80% of a companies profits come from 20% of its customers
  • 80% of complaints come from 20% of the customers 
  • 80% of crashes come from 20% of bugs
  • 80% of results are contributed by 20% of workers

Adapting to this knowledge involves uncovering this 20% and focusing on it. For example, if 20% or workers contribute 80% of results, focus on rewarding these employees. Or if 20% of customers contribute 80% of revenue, focus on satisfying their needs.