How to Apply the 80/20 Rule to Your Sales Strategy
Ever notice how you wear the same few shirts over and over again—even though your closet is full?
Or how you always end up in the same chair in your house?
Or how most of your time is spent with just a handful of friends?
That’s not a coincidence. It’s the 80/20 Rule in action.
What Is the 80/20 Rule?
Also known as the Pareto Principle, the 80/20 Rule states that 80% of outcomes come from 20% of inputs.
It was first discovered by Italian economist Vilfredo Pareto, who noticed that 20% of the population in Italy owned 80% of the land. Over time, this principle has been observed in almost every area of life and business:
- 20% of your clothes get 80% of the wear
- 20% of your customers generate 80% of your revenue
- 20% of your time drives 80% of your results
It’s not just a cute observation—it’s a power law distribution. And once you start seeing it, you can’t unsee it.
Using the 80/20 Rule in Business
Let’s talk about how to use this principle to become more effective in your work—especially in sales and marketing.
1. Revenue Analysis
Start by looking at your last 12 months of revenue, ranked by customer. Add a running total and calculate what percentage each customer contributes to your overall revenue.
Chances are, 20% of your customers are driving 80% of your revenue.
Even more interesting: the bottom 20% of your customers might be costing you money. They’re not just low-value—they could be negative-value when you factor in servicing and support.
That insight can change how you prioritize accounts, allocate resources, and think about retention.
2. Prospecting and Targeting
Next, look at your top customers and ask:
- What role do they have?
- What industry are they in?
- What products did they buy?
This helps you identify patterns and build out personas of your most profitable buyers. Then you can reverse-engineer that data to find and attract more people just like them—and disqualify the ones who aren’t a fit.
3. Lead Sources
Where are your leads coming from?
Export the last 6–12 months of lead data and tag the source: website, referral, trade show, cold outreach, etc. Then run the same analysis.
You’ll likely find that a few lead sources produce the majority of your qualified leads.
This insight helps you redirect time and budget to what’s actually working—and stop wasting effort on the rest.
4. Sales Mix
What are you selling?
Look at your products or services. Odds are, a small number of offerings drive the majority of your revenue.
That tells you what to feature in marketing, what to upsell, and what to trim. Focus on your best-sellers—and consider sunsetting the rest.
5. Time Management
Finally, turn the 80/20 lens inward.
Take a look at your calendar. How much of your day is actually productive? Where are you seeing the biggest results?
You’ll probably find that just 20% of your time produces 80% of your outcomes.
The goal? Spend more time doing those high-leverage activities—and cut out the distractions and busywork.
Final Thoughts
The 80/20 Rule is more than just a productivity hack. It’s a way of seeing the world.
It helps you stop trying to do everything—and start doing the right things.
Whether it’s in your business, your marketing, your time, or your wardrobe, there are always vital few things that matter more than the rest.
So here’s your challenge:
👉 What are you optimizing?
Look at your customer list, your lead sources, your schedule. Find your 20%—and double down on it.