Saturday, August 7, 2010

The 80-20 Rule of Internet Marketing

The 80-20 rule is also known as the Pareto principle. The rule states that, for many events, roughly 80% of the effects come from 20% of the causes (definition from Wikipedia).
So how does the 80 - 20 rule apply to Internet marketing?

Let us start at the beginning. When you are beginning Internet marketing, you spend 80 percent of your time learning, and 20 percent of your time doing.

The biggest challenge when you are starting out, is to break the 80% passive learning cycle into an active 80% action cycle while allowing only 20% of your time in passive training.
So, once you become an active Internet marketer, you spend 80 percent of your time doing and 20 percent of your time learning.

That is not to say that you stop learning. You still learn as you are doing. The 20% training time applies to conscious learning time to gather new information and techniques to use.
What else are you doing as an active Internet marketer? 20 percent of your time will be going to building sites about products to promote. The remaining 80% of the time, you will be promoting your site.

This means, for instance if you are article marketing, 20% of the time you will be writing or spinning articles. The rest of the time, you will be pushing them to article directories.
If you are using pay per click (PPC), 20% of the ads will make 80% of the income. The rest of the ads will break even or lose money.

That is, the bottom 20 percent of your ads will cost you. It is quite possible for the bottom 20 percent to completely wipe out the profits of your campaign.

And finally, you will find 20 percent of your sites producing 80 percent of your income.
Some quick takes:
  • 80 percent of your time should be doing and not reading, checking stats, hanging out on forums, etc.
  • 20 percent of your sites will make 80 percent of your income, concentrate on making those more profitable
  • Repeat what you have learned from your top 20 percent of your sites to scale your profits.
  • Spend 20% of your time on new techniques and experimentation.
  • Your next 80% of profits will come from the about 20% of experimentation
Finally, your success in internet marketing will come from 20% of your efforts. Find ways to eliminate the waste in the other 80 percent.

If you are the type of person who is tired of wasting 80% of your time trying to figure out this Internet marketing stuff or 80% of your money on ineffective training then click on these two links to help you get to the top 20%.




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