T. Harv Eker explains the 80/20 principle as applied to business: of many actions, a small subset (20%) drives most results (80%). He breaks every business into three parts—product/production; operations/administration/finance; and marketing/sales—and argues marketing is far more important for financial success. He prescribes allocating roughly 80% of one’s business time, money, energy, and learning to marketing and sales to achieve wealth.
Chapters
80% of your success is determined by only 20% of your actions. Meaning that when it all comes down to it, some things are just more important than others. What I believed when I was struggling was that each of these parts was equal. What's the word? Equal in importance. And therefore I should give equal. What's the word? Equal amounts of time and energy to each part. But with that belief, guess what? I was constantly broke and struggling. Please listen closely because I want to give you a key. A key principle. Here it is. There are only. What's the word? Only three. One, two, three. Only three major parts to every business. There's product or production. There's operations and administration, including finance. And there's marketing, which includes sales. And don't get me wrong, everything is important. But when it comes to getting rich. What's the word? Rich. Rich. One of these elements is a lot more important than the others. And this, my friends, in case you haven't already guessed, it, is marketing. Whether you realize it or not, whether you like it or not, marketing will have the single biggest impact on your business and therefore your financial life. Why is this? Simple. Without marketing, you have no customers. And without customers, you have no. What? Money. You know what? You can be fair in almost every other arena. But if you are a strong marketer, you will make a fortune. And conversely, if you are a weak marketer, chances are you'll always be broke or close to it. Bottom line, when it comes to any business, I have never met a good marketer that wasn't financially successful. And I've never met a poor marketer that was. When it comes to business, there are a million moving parts. But when you boil it all down, it will be your knowledge and your expertise in marketing that will determine whether you have massive success and get rich or you have major struggle and you stay poor. Poor or broke. Focus most of your business time, money and energy and learning into the arena of marketing and sales. How much? 80%. 80% of your time, 80% of your money, 80% of your energy, 80% of your learning. All into marketing. All into marketing and sales. And that, my friends, is definitely not common knowledge or common sense. It just works. And it works in the real world.
