In the late 1800s, economist Vilfredo Pareto observed that 80% of the land in Italy was owned by 20% of the population. In his garden, he observed that 20% of the peapods produced 80% of the peas. From these observations, the Pareto Principle was born. This principle, which can be applied both at work and at home, states that 80% of the effects stem from 20% of the causes. Over time, it has successfully been applied to many other areas.

For example:

• Daily To-Dos - 80% of your results come from just 20% of your tasks.
• Meetings - 80% of the decisions come from 20% of the meeting time.
• Salespeople - 20% of a sales force will produce 80% of the annual results.
• Products & Services - 80% of your sales come from 20% of your products or services.
• Customers - 80% of your revenue comes from 20% of your customers.
• Advertising - 20% of your advertising will produce 80% of your campaign's results.
• Inventory - 20% of your inventory occupies 80% of your warehouse space.
• Website Traffic - 80% of your traffic comes from 20% of your keywords or search engines.