A highly profitable distraction: the 80-30 Rule​

Time and again I ask my CPA clients to run a Revenue by Customer Summary Report and toss the results on a graph.

It looks the same every time.

80% of clients generate 30% of revenue.

Which means

20% of clients generate 70% of revenue.

…

These CPAs could let go of 80% of their clients and keep 70% of their revenue.

…

Does it always look exactly like that?

Of course not, not exactly.

Sometimes, it’s even more outbalanced.

Precision aside, the pattern is clear.

…

When was the last time you graphed your clients this way?

I hope you’ll grant yourself this 15-minute “distraction.”

For some, seeing it there on paper, changes everything.


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The Fear of Niche Boredom