Barbara Casey's
"Messages from the Soapbox"
(formerly Niche News Marketing E-zine)
Vol 6, No 6
- February
20, 2007
In this issue:
- A 30-Day Test of
the 80/20 Rule
- Focusing Your 20% on Residual Income
- Why I Pre-Ordered Zero Limits 6 Months Early
~ A 30-Day Test of the 80/20 Rule ~
Marketing books often talk about the 80/20 Rule which says, simply,
that 20% of your activities produces 80% of your results.
Of course we must then wonder what we're doing with the other 80% of
our time that's only delivering 20% of our results.
So the question is - how many of us really analyze which of our
efforts actually bring us that results-laden 80%? What is it that we
do that brings in the majority of our customers or the bulk of our
income?
And if you don't have enough clients or income right now, how can
you determine which action steps to focus on that will "deliver the
goods?"
Something to think about.
The 80/20 Rule is also known as the Pareto Principle, named for an
Italian economist who discovered that 80% of the property in Italy
was owned by 20% of the people.
Other ways to look at the 80/20 Rule include:
** 80% of your consequences stem from 20% of the causes.
** 80% of your revenues come from 20% of your products.
** 80% of your financial rewards are produced from 20% of your
activities.
When I analyzed my own business, for example, I discovered that
approximately 50% of my revenues are derived from passive/residual
income efforts, using other people's products, with the other 50%
stemming from coaching, writing and design work - all billed by the
hour and done by me personally.
What I further realized is that the time spent on the
passive/residual income stream is considerably less than the time
spent on the hourly work. And once the initial setup on the passive
and residual income streams is accomplished, my time involvement
tends to diminish, even while the revenues increase.
The main sources of what I'm calling "passive/residual income" are
(1) affiliate programs for products I offer on my website and (2) my
new adventure in network marketing.
I truly enjoy researching the different programs that can make a
difference in someone's life and business, so I tend to make
directories of these - see
www.newradiance.com/affiliatedirectory.htm
It's not, however, the best way to gain revenue from affiliate
programs, so in order to increase my income from this "passive"
source, I'll work on more of the tested methods recommended by
affiliate guru Rosalind Gardner in her
Super Affiliate Handbook.
It'll be worth it to me to spend time re-reading her book, because
I'll become more efficient and actually decrease the time and effort
it takes to earn more revenues from this income source.
The other activity I am increasing is learning all I can about
network marketing - particularly ways I can use my knowledge of
niche marketing to help my network members become more successful in
building their nutritional business.
I have already learned that network marketing is a powerful business
model that has made a number of people financially secure. Guess
which number - the 20% of folks who have figured out how to offer
both cutting edge products and exceptional mentoring support. They
undoubtedly account for 80% of the revenues in their respective
networking companies.
And what I really like about this business model is that once I've
learned how to do it right, I can teach other people how to do it
right and they will carry on the teaching and mentoring, freeing up
my time for other pursuits. But the revenues continue to arrive,
once I have built my solid foundation.
Were I putting all my efforts into my coaching business, my income
would terminate at the end of each hour.
Not so with passive/residual income programs. So, for the next 30
days, I've decided to focus on this area.
Can you analyze your own business to see where your best efforts
need to be focused?
For example, you could look at the difference between teleclass
(group) income versus one-on-one session income.
If your fee is $125 per hour for a private session, but you can
easily book 20 people to a one-hour teleclass at $25 each, where
would you say your *income-producing* time and effort were best
spent? Especially when you can record your teleclasses and sell the
audio files afterward.
$125 versus $500 for the same hour. 20% of your labor is creating
80% of your revenue if you compare hour by hour activities. You have
to market your teleclasses the same as you do private sessions, and
teleclasses require more preparation, but I think it's worth looking
at the time/effort spent compared with the income received. What do
your numbers look like?
Here's a little challenge, if you're willing to take it up.
Look at your income from the past 6 months and break down the
sources. Figure out the percentage of the total earned from each
source. Then look at the bigger percentage numbers and decide: (1)
If it's work you love doing; (2) If the time and effort involved is
worth the outcome; and, if it is (3) Make a plan to implement more
of the same over the next 30 days.
Eliminate as many non-productive activities as you can.
Don't get many leads from your leads club meetings? Don't go this
month.
Online networking pulling in more product sales from your website
than one-on-one clients? Focus on improving the sales pages on your
website and use those links frequently in your network posts.
Is your network marketing revenue starting to outstrip your coaching
income? Use your coaching skills to mentor your downline, rather
than advertise for coaching clients during your 30-day test.
See what I mean about concentrating on those activities that you *know*
can increase business income?
And set aside - at least for 30 days - those activities that are in
the "80% of effort producing only 20% of revenue" category. This is
a hole that's easy to get into, without even realizing it. Awareness
is the first step out of it.
We want the 80/20 Rule to be working for our highest financial good
- and it can work, if we focus on... what works.
P.S. - I wrote this article over the weekend and "coincidentally"
learned today of a CD program by Richard Koch called - ta da - "The 80/20 Principle."
Here's the
link for The 80/20 Principle.
~ Focusing Your 20% on Residual Income ~
As part of my 30-day test, I am actively seeking 5 holistic health
professionals who would like to join my network - people who are
interested in earning residual income with cutting edge nutritional
technologies.
If you have a customer list or a facility where you see clients,
let's talk.
I'm being mentored by folks who know what they are doing and who are
willing to give extra help to people who are committed to wellness
and financial abundance.
If you'd like to talk about this idea, please give me a call at
727-397-2702.
Want more info first?
Here's the residual income link:
www.highfrequencynutrition.com.
~ Why I Pre-Ordered Zero Limits 6 Months Early ~
A new book by Joe Vitale called "Zero Limits" will be released on
June 29, 2007.
Here's an excerpt from Joe Vitale's thought-provoking article that
will whet your appetite for more.
========
How can "cleaning" yourself with a mantra like "I love you" make a
difference in your sales?
It appears that there is nothing "out there." The entire world is a
projection of what you feel inside.
So, if you feel love, you will attract love. Because love contains
gratitude, you attract more things to be grateful for.
========
This article caused me to pre-order Zero Limits in January - 6
months early!
Click here to read Joe Vitale's article.
===========================================
Barbara Casey's Messages from the Soapbox:
Inspiration for your vision and tools for the success of your
home-based business.
PO Box 86674, St. Petersburg, FL 33738
(727) 397-2702
Copyright 2006 Barbara Casey
www.newradiance.com
