80/20 Rule – 5 Considerations For Internet Companies
The Pareto Principle is relevant to a diversity of trade and industry situations and states that nearly 80% of the outputs are directly attributable to only 20% of the inputs. This model is also commonly labeled as the “80/20 Rule” or the “Law of the Vital Few”.
This principle is named for Italian economist, Vilfredo Federico Damaso Pareto who, in 1906, documented that 80% of the real estate in Italy was owned by only 20% of the population. Later on he understood that same unequal relationship applied to other situations as well (e.g., gardening).
Note that the 80% and 20% figures are not conclusive values; rather, it is merely the unequal distribution that is important.
1. Individual Considerations:
The Pareto Principle serves to remind you to stay consistently attentive to the 20% of the potential daily activities that really affect the outcome. Given the intricacy of today’s society, and particularly the information overload produced by the Net, it is very easy to become overwhelmed and start spending time on things that (though they may be “demanding”) are not especially important in impacting your business success or your profitability.
Limit Your “Action List”
* Of all the entries on your “To-Do List,” only 20% are really important.
* Remove things that simply waste time and really not important.
Focus on Your Strengths, Not Your Weaknesses
* 20% of your activities will dictate 80% of your results.
* Use technology for those tasks that can easily be automated.
Stay Attentive to the 20%
*Knowing the critical 20% helps you use your time efficiently.
* If problems do surface, and something has to get dropped, make sure it isn’t one of the essential 20%.
The “80/20 Individual” takes the Pareto Principle seriously and applies its findings to everyday life and everyday decisions. S/he concentrates on – and builds on – individual strengths.
2. Customer/Product/Service Implications:
Interpret the term “Product” to include both tangible (i.e., physical) products as well as services and understand how the following generally accepted statistics might impact your business.
Pinpoint Vital Customers & Most Profitable Products
* 20% of customers account for 80% of profits.
* 20% of products account for 80% of revenues.
Settle Product and Service Troubles or Discontinue Them
* 80% of customer complaints center around the same 20% of products or services.
Drop “customers” that are really just kicking tires and don’t waste your time and resources on products and services that simply reduce your bottom line – draining time, energy, and money that could be better spent elsewhere.
3. Website Implications:
Distribution is about getting the products to the customer, and in an online environment, much of that delivery happens via one or more of your websites.
Determine Your Key 20% Websites
* 20% of websites account for 80% of the hits.
Determine Crucial Traffic Patterns
* Roughly 80% of your viewers see about 20% of your website pages. (This stat holds true for both B2B and B2C, but may not hold true for pure content sites.)
Inspect Your Web Traffic Registers
* You’ll find that a small number of keywords, search engines & websites give you the majority of your visitors.
The Pareto Principle can help you as you optmize your pages and improve traffic patterns.
4. Management Considerations:
Small companies, such as the bulk of affiliate businesses, drive the nation’s economy. Your internet business will benefit if you understand how Pareto’s Principle affects your profits.
Assess Your Sales Force (Including Affiliates)
* 20% of a sales force produces 80% of the annual results.
* The best 20% of any group is generally at least 16 times as effective as the remaining 80 percent.
Just as major corporations need to manage their employees, you’ll need to identify key performers, look after them, and encourage them if you want your business to be profitable.
5. Advertising/Marketing Considerations:
Use Pareto’s Principle to help you make good choices about your marketing and advertising strategies.
Discover Your Top Performing Ads and Marketing Promotions
* 20% of your promotion will be the source of 80% of your campaign’s results.
* 20% of a marketing promotion will generate 80% of the results, etc.
Spot your winning ads, and the placements that produce the top outcomes, then test – test – test, constantly refining them to make them even better.
If you’re managing a small, online business, you’ve probably already learned that there are many demands for your attention at any given time. One of the biggest challenges you’ll face each and every day is deciding how to spend your limited resources.
Consistent application of Pareto’s Principle will help you improve your business’ productivity and total efficiency, thus increasing your profits.
Click the following link if you’d like to understand how to apply Pareto’s Principle by taking advantage of the MaxPro System and proven processes from one of the leading internet gurus.
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Merchant Accounts, Credit Cards And Your Business
Offshore Merchant Account, Credit card and Your Business
A merchant account is a basic business element in growing economic for most entrepreneurs. Merchant accounts support entrepreneur to accept money from credit cards, a debit card, a gift card and other online electronic transactions. Generally a merchant account transaction is referred by a credit card.
When a buyer uses a credit card to do the payment, a merchant who takes the payment must have a credit card terminal to receive the electronic payment. That’s why a merchant should request to a merchant account provider to get the facilities. However not all merchant will be approved for a merchant account. The problem could be because of a bad credit card history payment of the entrepreneur. So if you plan to submit an application for a merchant account service, you should pay all your credit cards bills. It will be better if you do a good payment for the last 6 months.
If you are running a global commerce online and you are looking for a lowest Offshore Merchant Account provider, I would like to suggest Intelli Collect company to you.
As an online entrepreneur, I do online payment by Paypal everyday. Paypal has become a revolution online transaction system. It helps people to deliver and receive cash easy and fast. Unlike merchant account, anyone is able to sign up to Paypal with any kind of credit history and begin dealing within minutes. Even Paypal is the most used online payment, I prefer use a merchant account service to collect the payment. Because the percentage of transaction fee by Paypal is enough big sum for me.
* What is the most advantage of using offshore merchant account?
I already run 2 years online business, one of the benefits of Offshore Merchant Accounts is tax reduction.
Can I use merchant account service if I run an offline business?
Yes, you can. Merchant account services can do the deal for both, online and offline business. If you have a store and you desire to get the transaction using merchant account service but you will discover transaction fees. The fees are various for each merchant account provider. You also will have other fee including monthly minimum, authorization, statement, annual and chargeback fees. A chargeback fee is only charged if there is a rejection credit card transaction for a reason.
What are the requirements to apply a merchant account?
To apply a merchant account service, you must have your business license, business location, owner credit card history and other essential data. Then a merchant account provider will carry on your application working together with a bank that will supply the credit card terminal and other payment facilities.
You may require to visit here more guides about Offshore Merchant Account. And if you plan to apply a merchant account service, we suggest a best source that has the lowest merchant fees and free annual fee here http://www.intelli-collect.com/creditcard.html.
EBay Seller
An eBay Seller’s Checklist.
Being a seller is a lot of responsibility, and sometimes you might feel like you’re not doing everything you should be. This simple checklist will help you keep on top of things.
Have you found out everything you possibly could about your items? Try typing their names into a search engine – you might find out something you didn’t know. If someone else is selling the same thing as you, then always try to provide more information about it than they do.
Do you monitor the competition? Always keep an eye on how much other items the same as or similar to yours are selling, and what prices they’re being offered at. There’s usually little point in starting a fixed price auction for $100 when someone else is selling the item for $90.
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Have you got pictures of the items? It’s worth taking the time to photograph your items, especially if you have a digital camera. If you get serious about eBay but don’t have a camera, then you will probably want to invest in one at some point.
Are you emailing your sellers? It’s worth sending a brief email when transactions go through: something like a simple “Thank you for buying my item, please let me know when you have sent the payment”. Follow this up with “Thanks for your payment, I have posted your [item name] today”. You will be surprised how many problems you will avoid just by communicating this way.
Also, are you checking your emails? Remember that potential buyers can send you email about anything at any time, and not answering these emails will just make them go somewhere else instead of buying from you.
Do your item description pages have everything that buyers need to know? If you’re planning to offer international delivery, then it’s good to make a list of the charges to different counties and display it on each auction. If you have any special terms and conditions (for example, if you will give a refund on any item as long as it hasn’t been opened), then you should make sure these are displayed too.
Have you been wrapping your items correctly? Your wrapping should be professional for the best impression: use appropriately sized envelopes or parcels, wrap the item in bubble wrap to stop it from getting damaged, and print labels instead of hand-writing addresses. Oh, and always use first class post – don’t be cheap.
Do you follow up? It is worth sending out an email a few days after you post an item, saying “Is everything alright with your purchase? I hope you received it and it was as you expected.” This might sound like giving the customer an opportunity to complain, but you should be trying to help your customers, not take their money and run.
Being a really good eBay seller, more than anything else, is about providing genuinely good and honest customer service. That’s the only foolproof way to protect your reputation. Of course, you might be wondering by now whether it’s really worth all the hassle to get a good reputation on eBay. Won’t people buy from you anyway, and couldn’t you just open a new account if it really comes down to that? Our next email will set you straight.
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