The truth behind wealth inequality in business…
15603
post-template-default,single,single-post,postid-15603,single-format-standard,bridge-core-1.0.4,ajax_fade,page_not_loaded,,qode-theme-ver-18.0.9,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-5.7,vc_responsive
 

The truth behind wealth inequality in business…

The truth behind wealth inequality in business…

It was the late 1800’s and his name was Vilfredo 

Pareto. One day while tending to his garden,

he made a tiny but significant discovery.

 

He noticed that out of all the pea pods in his garden

there there were a small percentage that produced

the large majority of his peas.

 

This discovery caused him to wonder if the same

unequal distribution were present in other

areas of life. The first area he observed was

wealth distribution. To his astonishment

he noticed that 80% of the land in Italy was owned

by only 20% of the population.

 

Just as he had noticed in his garden with the peas,

most of the resources were controlled by a small

minority. As he continued his study of the other

nations a distinct trend emerged. His study of

the income tax records of the British revealed

30% of the Brits brought home over 70%

of the income.

 

While the numbers in each category differentiated,

the trend remained consistent. The bulk of the spoils

of life went to a small number of players. Thus the

Pareto Principal was born or as it’s more commony

known today, the 80/20 rule.

 

It’s the idea that a small number of things account for

the large majority of results.

 

More examples

 

Over 50% of online purchases are made through

amazon.com.

 

Remember Ask Jeeves? Remember Bing?

Well at one point they were just as prominent as

Google. However in 2019 90.4% of search queries on the

internet were made through Google.

 

It has been noted that 80-90% of the women in a social

setting, such as a college campus, will mate with

10-15% of the male population.

 

In the NBA the Boston Celtics (hate them) and

the Los Angeles Lakers (My Squad) have

won almost half of the championships in

NBA history.

 

Brazil, Germany, and Italy have won 13 of

the first 20 world cups while competing

with 77 teams.

 

What causes this to happen?

 

In business small differences in performance lead to huge

differences in wealth and reward distribution, when

repeated over time. You only have to be slightly better

than your competitors. But the key is in how

consistently you can repeat that edge.

 

If you and I compete for market share of a small town,

selling tires. And your marketing and copywriting skills

are a tad bit better than mine. In the beginning what

will happen is that you’ll bring home maybe $100

more than me per day.

 

That extra $100 then allows you to afford more advertising

than me, which makes your business more visible than

mine. Then a month from now you’ll be making $1,000

more than me. You now have enough money to spend

on advertising in addition in training courses

that’ll teach you how to improve your marketing

and copywriting skills even further. Or hire someone

who can do it for you.

 

Until a year from now you’re the only game in town.

While me and my family are lined up at the welfare

office.

 

If we both enter a race and the grand prize is $10 million

dollars and you’re a fraction of a second faster than me.

Do you receive a fraction of a percent more money

than me?

 

No. You get the whole $10 million.

 

In conclusion it’s not necessary to be twice as good

as your competitors. All you have to do is be 1%

better than them daily, over time and they won’t

be able to catch up. The key is consistency.

 

In order to get and maintain your edge,

subscribe down below now.,

No Comments

Post A Comment