Eighty-Twenty Rule

The 80/20 rule is that 80 percent of the products sold by companies will be will be consumed by 20 percent of the customers.  

The 80/20 rule was created by Economist Vilfredo Pareto in 1906 after he discovered that 80 percent of his peas came from 20 percent of the pea pods he harvested. He later observed that 80 percent of the land in Italy was owned by about 20 percent of the population, and so the rule was born. The eighty80/20 rule is called Pareto’s Principle or Pareto’s Law.

Eighty-Twenty Rule was last modified: November 24th, 2009 by
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