Authors have limited resources when it comes to both time and money. How do you choose what to do and, more importantly, what not to do? Lawrence Knorr, author and founder of Sunbury Press, explains how the Pareto Principle can help you decide where to invest your limited resources. The Pareto Principle is an old business trick that can streamline your energy and money. The Pareto Principle is basically the 80-20 rule, which is “one of those secrets of business that, once you understand it, you can leverage to great success,” according to Knorr. The Pareto Principle is this: 20 percent of your efforts and investments will result in 80 percent of your sales, while 80 percent of your efforts and investments will result in only 20 percent of sales. The statement takes a bit of mental gymnastics to understand, but it is easy to execute. The secret, Knorr says, is to focus your efforts on those things that result in 80 percent of your business. Those are the “20 percent” activities. Listen to the clip below as Knorr talks about how to determine what is worth your time and money.
Didn't seem very helpful. Basically, at the end he says "You never know what's going to do really well." That sums it up, doesn't it? A small percentage of your books are going to account for most of your sales. Which books? Who knows?