The Law of Two or Eight

The Law of Eight

The Law of Eight

was introduced by economist Baledo, who argued that in any group of things, the most important ones make up only a small portion of the group, about 20%, and that the remaining 80%, though in the majority, are of secondary importance.

Situational Application

The "Law of Two or Eight" is common in life. 80% of a businessman's sales come from 20% of his merchandise, and 80% of his business revenue is generated by 20% of his customers. The law of two or eight tells us not to analyze and look at the problem on average, business operations and management to seize the key minority, business managers should be carefully classified and analyzed, to spend the main energy on solving the main problems, grasp the main project.