The 80/20 rule - Pareto PrincipleThe Longtail rule, the Zipf law, the Power law or (easily the most dramatic) ‘The law of the vital few’. It might have many names, but ultimately all forms of the 80/20 rule amount to the same thing – that **80% of effects come from 20% of causes**. The same applies to freelancers: you can gain new business simply by offering great service to your clients.

If you want to get all historical, the true name of this rule is in fact *the Pareto Principle*, coined in 19th century Italy by Vilfredo Federico Damaso Pareto. An economist interested in the study of income distribution, Pareto observed that 80% of the land in Italy was owned by only 20% of the population. Fast-forward to present day, and the same rule can be applied to many facets of today’s economy, including everything from the [4-day workweek][1] to the infamous [Longtail][2].

[1]:http://www.fourhourworkweek.com/
[2]:http://www.longtail.com/

### How does the 80/20 rule relate to freelancing?

In a business sense, the 80/20 rule is often best applied to a shop’s traditional stock and inventory, where 80% of sales are actually made from only 20% of inventory. The savvy shopkeeper focuses on that 20%, thereby reducing costs while maximising revenue. It’s a no-brainer.

Similarly — though our stock is virtual — the same applies to freelancers. We sell our time, services and skill sets to clients, yet (in most cases) 80% of our business comes from only 20% of our clientele. This doesn’t mean we stop looking for new business, but it does underline how important our existing clients really are.

### The key to good business is recurring business

#### Fact: the cheapest and most effective way to get new business is to focus on existing business.

Acquiring new clients can be costly, time-consuming, and difficult. Paying for outbound marketing, travel expenses and the gut-wrenching feeling of not winning a pitch after hours of blood and sweat are enough to make many freelancers wince in pain. In comparison, once you’ve won a client, they might be more valuable than you ever expected.

##### The takeaway? Love your 20%

We’re all clients to someone, so we can all appreciate good service. Everything from being proactive and saying hello once in a while to a willingness to help out in a cinch all amount to forming great relationships with your existing clients through good service. And it works both ways; in return, your clients will keep you top-of-mind when they’re discussing their business with colleagues, peers or contacts. “Hey, who did your website?” can be all it takes. Word-of-mouth (WOM)-referred business can be priceless – people trust the opinions of people they know, which helps lower the ‘getting to know you’ barrier dramatically. And the best part? It didn’t cost you a penny.

##### Want another reason?

When your clients have new work, what are they more likely to do? Go through the bother of finding someone new, untested and unknown, or return to you — their tried, tested and reliable service provider who always seems to offer great service?

##### Another reason?

Upgrades. If your clients are already receiving one service from you, they might have a need for services they weren’t aware you offered. It’s easier and cheaper for your clients to go with someone they know and trust versus finding someone new. Similarly it’s easier for you to ‘pitch’ your services to someone who already knows what you do, how you work, and what you’ll bring to the project.

### So go give your clients a hug

Just like that shopkeeper focusing on the 20% of their stock that gets sold, it’s a no-brainer to give your current clients some love. They’ll thank you for it, not only through appreciation but by passing new projects or referring potential new business to you. Who can argue with getting 80% of new business simply by being offering good service?

###### By [Jon Aizlewood](/author/jon-aizlewood) Freelance web marketer & designer, founder and director of [CarbonGraffiti](http://carbongraffiti.com/)