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80/20 rule in Real Estate?

By
Real Estate Agent with Coldwell Banker Pioneer Real Estate

80/20 rule in real estate?

Hi I'd like to talk about what is known as the  80/20 rule.  For those that don't know about this principle ..." In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto's Principle. While it may be misnamed, Pareto's Principle or Pareto's Law as it is sometimes called, can be a very effective tool to help you manage effectively." (F. John Reh)




I was wondering if anyone had heard about the 80/20 management system. And for those that have used it, how effective is it? How can an agent use this to maximize results? Thank you.

Comments (3)

Jackie Moye
Bob Parks Realty - Franklin, TN
CSP
I am not sure what you are asking. Do we apply the principals to our staff or do we see ourselves as a 20% agent?
Jul 29, 2007 03:39 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy Kevin

I had not heard of it. Maybe you could tell us a little more about it.

Have a good one

Jul 29, 2007 06:17 AM
Darren Orshoff
Team Orshoff - All things Riverside Real Estate - Riverside, CA
The Key To Your Home™

I have heard about Pareto's Law...it makes sense...

Probably a subconscious association to why our industry is what it is...because of 80/20 lending practices to the wrong people.

:)

Aug 10, 2007 06:34 PM