This transcript was generated from the episode audio and may contain minor errors.
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Hey there, what's up? Welcome, thank you for tuning in today. You're listening to Side Hustle School, the only daily podcast seven days a week, bringing you tips, stories, case studies, all kinds of ideas, and of course, answers to your questions about earning extra money without quitting your job. And not just small amounts of extra money, but potentially establishing a sustainable long-term project. Now today's caller is wondering about the 80/20 rule.
Now you might be familiar with this. It originated from an Italian economist named Vilfredo Pareto, who observed that 20% of pea pods in his garden produced 80% of the peas. Those 20% of pea pods working really hard, everybody else slacking off. And the principle suggests that a small number of actions make up the majority of outcomes in lots of situations, not just pea pods in your garden. So you can see examples of it in action everywhere.
20% of a company's products typically represent 80% of sales. 20% of blog posts typically generate 80% of traffic. And 80% of complaints for most businesses come from 20% of customers. There are lots of other examples. Today's listener is wondering about applying this principle to the world of side hustles.
What can we learn, and what can we do differently as a result of this knowledge? Quick shout out to our sponsor in the detailed question and my answer. [Music]
Hi Chris, this is Deja, and I've been listening to the show for a couple of years. Thanks for all the helpful advice and great stories. We've all heard of the 80/20 rule, how a minority of actions contribute to the majority of outcomes, but how do you figure out what the actions are that really move the needle?
I've been thinking about this ever since I started side hustling. So far I've tried five projects. One was a bust to have done okay, and I'm still waiting to see what happens with the other two. I'm pretty sure that I should be putting my attention squarely on one of them, but I don't know which. And even if I could decide, how do I know what strategies to use as I try to grow it?
Thanks for your help. [Music]
Deja, this is a great question. I don't think anybody has asked it in four years. And I also think you're on the right track. So you're on the right track with starting these different projects.
Ignore the one that was a bust. You got five projects, right? One was a bust, two have done okay, you said. Still waiting to see about those other two. So of the four that are either working or uncertain, hopefully one of those is gonna stand out.
And I generally agree with putting your attention squarely on one of them, as you said. But how do you know which one it's gonna be? For me, the more experience I have gained, the more I have tried to let go of small projects or small wins in order to focus on the ones with more potential for impact. So maybe one lesson is, don't be afraid to drop some of those 80% of projects, those ideas or commitments that aren't achieving significant results. There's two projects that have done okay.
Well, they might be taking your attention from the one project that's gonna do amazing. So try different stuff for sure. But once something takes off, then you can analyze it and see if you can determine what it was that made it so successful. But one note of fair warning, hindsight isn't 80/20, it's 20/20. Like you can't always just say, "Oh, I see why this took off.
"I'll do the same thing again in a slightly different way "and achieve the same results." That's not how it works. Sometimes it is, but often you don't really know, which is why it's so important to try different things. And the same goes with the strategies. How do you know which strategies are gonna be effective? You try different things and you drop the things that don't work.
And don't be afraid to drop the things that are working somewhat. Because again, you want something that's going to be amazing. Start things, see what happens, and then decide, drop it or refine. Good luck. Listeners, if you have a question, just come to sidehustleschool.com/questions.
I so enjoy making this show for you. Got a new episode coming up tomorrow. Case studies, tips, actions, and of course, answers to your questions. Thanks for tuning in. This is Chris Guillebeau for Side Hustle School.
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- From the Onward Project.
