Q&A: What’s the 80/20 rule of side hustling?

Notes from Chris

Episode 1754

The 80/20 rule is also known as the rule of outsized impact. It originated from an Italian economist named Vilfredo Pareto, who observed that 20% of pea pods in his garden produced 80% of the peas.

This principle suggests that a small number of actions make up the majority of outcomes. You can see examples of it in action everywhere:

• 20% of a company’s products typically represent 80% of sales
• 20% of posts generate 80% of traffic
• 80% of complaints are by 20% of customers.

And many more. Today’s listener is wondering about applying this principle to the world of side hustles. What can we learn—and what can we do differently as a result of this knowledge?

"Hi Chris this is Deja and I’ve been listening to the show for a couple of years —thanks for all the helpful advice and great stories. We've all heard of the 80/20 rule: how a minority of actions contribute to the majority of outcomes. But how do you figure out what the actions are that really move the needle? I've been thinking about this ever since I started side hustling. So far I've tried five projects. One was a bust, two have done "okay," and I'm still waiting to see what happens with the other two. I'm pretty sure that I should be putting my attention squarely on one of them, but I don't know which—and even if I could decide, how do I know what strategies to use as I try to grow it? Thanks for your help."

Listen to today's episode to learn more...

 

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SEE ALSO:

• Q&A: Is there an easier way to start reselling?: Reselling is quick and simple—but it’s also a lot of work, and today’s caller is looking for a shortcut. Does such a thing exist?
• Q&A: My boss is asking a lot of questions...: A listener’s boss is way too nosy! He’s asking a lot of personal questions about our caller’s side hustle. Maybe this boss is a little jealous?
• Q&A: What's the best way to keep track of side hustle ideas?: Today’s listener is wondering about a good way to record and track ideas. Naturally, he’s thinking of side hustle ideas—but it really could apply to *any* ideas. I’ll give you three good options in my answer.

Inspiration is good; inspiration combined with action is better. Now get back to work!

Yours in the revolution,