The 64/4 rule explained – with examples

The 64/4 rule explained – with examples

We’ve all heard of the 80/20 principle – the notion that 80% of your results are driven by 20% of your actions.

Known also as the Pareto principle, it was explained in great detail in Richard Koch’s book “The 80/20 principle”.

  • 80% of your nutritional needs are met by 20% of the food you eat.
    80% of your income comes from 20% of your work.
    20% of your customers provide you with 80% of your turnover.

This can be applied to pricing too – 20% of your customers would happily pay more for a premium product, if only you’d make one available to them.

80% of your referrals probably come from the same 20% of referrers.

But what happens when you apply the Parento Principle to itself?

Does 80% of the 80% come from just 20% of the 20%?

Yes, it does.

The Parento Principle compounds – and you can square it (the 64/4 rule), cube it (the 51/1 rule), or take things even further.

If 80% of the output comes from 20% of the input, then 64% of the output comes from just 4% of the input.

20% of your customers would happily pay more for a premium product.

20% of them (4% of your total customers) would pay even more for an ultra-premium product.

And 20% of the 20% of the 20% (1% of your total customers.. yes there’s some rounding going on here!) would pay yet more for an uber-luxurious level.

But why stop there? Of those 1%, a fifth of them would pay even more, for an even better product or service if you were able to provide it.

People think about the 80/20 rule all the time – but they always stop at that level. They never compound things further, and talk about the 64/4 rule, or the 51/1 rule.

If you knew that 51% of your turnover came from just 1% of what you do, wouldn’t you make absolutely damn sure that you worked on that 1% every single day?

That’s what our One Percent Club is all about – getting you working on the 1% gains that actually make a difference in your business. The doors aren’t open right now, but you can join the waiting list for our next intake here.

64/4 rule explained

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The One Percent Club will show you EXACTLY how to implement these 1% gains into your business, and how they can stack up to REALLY grow your business.

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