Monday, May 2, 2011

#1 Pareto's Law

Let's become effective
I'm not really saying anything new here. Well, I'm rarely saying anything new, just synthesizing information and distributing that information through my own unique synthesis. (Yay for starting my blog posts at the second highest level of Bloom's Taxonomy).  There is so much to talk about and how it all fits together.  Law of Attraction, Occom's Razor, Happiness, Brain Function, Exercise, Health, MMA, Self Help, Discipline, Falun Dafa, etc.  Where to begin?


Pareto's Law: 80/20 Principal
There is a plethora of information on Pareto's Law available on the internet, just Google it to find more.  Essentially it is this: 20% of anything accounts for about 80% of the results.  20% of the world's population holds about 80% of the wealth (a popular one).  20% of Pareto's garden peas accounted for 80% of his yield.  The list goes on and on and typically can vary even more so towards 90/10, 95/5 and 99/1.  I've been on a quest for efficiency as of late, about that last year or so.  Something that's helping is to continually ask myself, "What's the 80 and what's the 20 in situation x?"  


I'm starting a new company, currently called Sunexos, a data driven SEO company.  More about how I decided to start this particular company later.  For now, I'll say I ran a brief market analysis using Google Adwords to discover what people were looking for on the internet when it came to search engine optimization, viz., how do I get to number one in search engine page rank? (SERPS).  Overwhelmingly, about 97% of the campaign pointed towards the same thing.  I was shocked and pissed at the same time.  I'd spent about 20 hours compiling lists of keywords about the industry to determine what people cared about.  I had to cut down from 456 to 150 keywords.  When my final list was done, only 2 mattered.  2 out of 456 originally, or just under 0.5%.  Here is a case of the 99.5/0.5 rule, wow.


What does this mean?
First, at least 80% of what I write on this blog, any blog, anywhere in the world, will be totally crap to you!  You, is key though, someone else may find something else particularly useful and you think it's useless.  That's cool, it's part of the law.  Of the 20% of articles you find useful, 80% of the content in those 20% will be useless.  So, I'll try to keep posts short.


80% of what I write won't even be helpful to me.


It's time to become hyper efficient in life.  In all aspects.  The guiding principal behind everything I do now comes from Pareto's Law, (technically not a law because you can never fully prove it, it's more of a principle).  However, due to such crazy ideas as the Law of Attraction, Pareto's Law, Occom's Razor, The Golden Ratio, etc, I'm confident that I'm more capable than at least 80% of the other companies out there in the internet marketing business.  Why, because I'm basing all company action on the 80/20 principle.  Sunexos does something different than everyone else out there.  We'll Analyze data, look for the 20% that's useful and then act on that.  Rather than throwing spaghetti on the wall to see what sticks, everything will be based on data driven decision making.  Cutting out the crap, and focusing on the Critical Few.  Thanks Avinash, you've managed to explain something to me that I already knew in yet a different way so that I'd understand it better.  And thanks Tim, you managed to help me get my ass in gear.

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