HOW TO APPLY THE 8020 RULE IN SALES
8020 Rule is also known as the. Pareto Principle; Pareto said that the top 20 percent of salespeople make 80 percent of the sales and money money. The bottom 80 percent of salespeople only make 20 percent. I have been into sales for all most 10 years and my sales life changed drastically after I knew and apply this rule myself. It became my mission join the top 20 percent and to learn how to get there.
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The 8020 Rule helps You Not Worry About Money.
One of the very good reason to get into the top 20 percent is that you will never have to worry about money again or fret about job security. You’ll never lose sleep over employment. I remember when I was moving from my first bank job to the second one, my immediate manager asked me “Tony how much money do you want us to pay you for you to stay with us?” He wanted to retain me because he knew how much sales I was bringing in. The same happened when I was resigning my second bank job. The people in the top 20 percent are some of the happiest people in our society.
On the other hand, the people in the bottom 80 percent are always worried about money. One of the great tragedies of our society, the most affluent in human history, is that the majority of people worry about money most of the time. They get up in the morning thinking about their money problems .They think about how little money they have all day long. When they come home at night, they talk and often argue about money and how much everything costs. This is not good way to live. The good news is that you have the power to change that by applying the 8020 rule.
Develop a Winning Edge.
What are the distinguishing factors of these individuals and organizations that make such incredible differences possible? The conclusion is that they have developed the winning edge in their field. This winning edge concept is one of the most important management and sales ideas of the twenty-first century. This principle says “small differences in ability can lead to enormous different in results“. The differences in talent or ability between the top performer and the average or mediocre performers are not huge; often, it is just a few small things done consistently and well, over and over.
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Win by a horse nose
For example, if a horse runs in a race and wins by a nose, it wins ten times the prize money of the horse that loses by a nose. Here is the question: Is the horse that wins by a nose ten times faster than the horse that loses by a nose? Is it 10 percent faster? No, it is only a nose faster, but it translates into a 1000 percent difference the in prize money.
If a salesperson gets the sales in a competitive market, does it mean that he or she is ten times better than the salesperson who lost the sales? Of course not! Sometimes it is only a small technicality that causes a customer to buy from one person rather than the other. The fact is the salesperson that wins the sale may only be a nose better than the one who loses it.
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Become a little bit better.
In selling you only have to be little bit better and different in each of the key result areas of selling for it to accumulate into a extraordinary difference in income. A small increment of skill or ability, just 3 or 4 percent, can give you the winning edge. It can put you in the top 20 percent or even the top 10 percent.
Once you develop this small lead, like compound interest, it continues to grow. At first, you move slightly ahead of the crowd. As you use your additional skills, you get better and better at them. The better you become the better results you get. You soon begin to pull ahead of the crowd by a larger and larger margin. In a few years, or even a few months, you can be earning five or ten times as much as others who are still performing at average levels.
Please remember the 8020 rule also can be applied in different aspects of our lives.