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The 4% Rule - Applying The 80/20 Rule To The 80/20 Rule. Going META on the Pareto Principle

4,415 views · Published 10 December 2016 · 12:12 · Indexed 5 October 2026

Channel: Miles Beckler · 2016 · Howto & Style

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If you are familiar with the 80/20 rule, or the Pareto principle, and you don't know what your 4% is, you are missing the point.

Everyone knows what the 80/20 rule is, but very few people understand how to maiximize this ratio to create the most positive output and benefit in their lives or businesses because the Pareto principle is incomplete.

You see, if you apply the 80/20 rule to the 80/20 rule, you end up with two numbers.

4% (20% of 20%) and 64% (80% of 80%)... and these are the most important numbers in your business.

Why?

Because if you stay focused on doing the 4% of things that only you can do... You will create 64% of the effectiveness needed to be successful with your business.

You then outsource the rest, or build systems and automation in order to maximize your output, keeping yourself focused on the most important tasks (your 4%).

My wife and I are always asking ourselves and each other... "Is this your 4%?"

...Meaning.  Is this something that ONLY you can do?

So often we find ourselves doing things that any of our developers, designers or VA's can do, so we need to remind ourselves to do those things that only we can do.

This is how we keep the first thing first and stay focused on the most important tasks at all times.

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