The 80/20 rule applies more often than it doesn’t. It’s kind of shocking actually.
- 20% of criminals commit 80% of crimes.
- 20% of customers are responsible for 80% of sales.
- 20% of a stock portfolio accounts for 80% of the growth.
- 20% of your team does 80% of the work.
- 20% of words account for 80% of our usage.
Are all of the above examples accurate? The Google says they’re true. Maybe 20% of the examples make the rule seem 80% reliable? I’m not very good with math. Even if they’re not all totally accurate, well, you get the idea. The 80/20 rule often makes sense.
Do the math and you’ll see the solution
The 80/20 rule, also known as the Pareto Principle, turns out to be applicable in a broad range of situations. Here’s one illustration of the Pareto Principle that I’m certain is accurate. I’ve lived this one. I know it’s true from personal experience, if not from scientific study. 20% of our clients cause 80% of our misery. That’s 100% accurate based on my observations, obtained over thirty years of dealing with clients.
Most clients are awesome. They’re pleasant to talk to, they do what we ask, they pay their bills, and they act like decent people. But a few–just a few–are absolutely miserable human beings. Thankfully it’s only a few. Once you realize how few of your clients are causing most of your stress, it becomes clear that dramatically improving your work life is easily within reach. You’re just a few clients away from much better days.
Rapid action for stress reduction
What can you do to fix the problem? Two things:
1. Finish the cases
Some of these clients are close to being done. You’re nearing the finish line. These cases often get stuck at the end because you can’t find the motivation to focus on the final details. Every interaction with the client is so unpleasant that you avoid doing the last few tasks to wrap things up. Unfortunately, that avoidance is just prolonging the agony. Suck it up and finish. Now that you can see how beneficial it will be to finish your few difficult cases, you’ll have renewed energy to tie up the loose ends.
2. Fire the clients
You’ve identified a few clients who simply need to go, so that you can restore your quality of life and regain your sanity. You knew these nightmare clients were trouble early in the relationship. You hate being their lawyer. Get rid of them–now. You’ll have to muster your courage, have an unpleasant conversation, and return some money. Just do it. Do it because it’s worth it. It’s worth way more than it will cost.
The 20% use up way more than 20% of the oxygen
Getting rid of the awful 20% changes everything. Suddenly, you wake up in the morning looking forward to work. You find yourself thinking of creative approaches for the other 80% of your clients. You discover new ways to approach marketing your business, managing your team, and helping your clients. The overwhelming dread is gone and the world is suddenly full of rainbows, sunshine, and butterflies. Why? Because you gave yourself the gift of lopping off the most difficult clients.
Your renewed energy is worth way more than the revenue that would’ve come from the 20% of clients you cast aside. In fact, one thing the 20% have in common is that they often represent a significant proportion of your accounts receivable. The awful 20% are the first to complain about your fees and the last to pay their bills. Good riddance. Letting go of the 20% of your clients who cause you distress will change your relationships with your business, your family, and the remaining 80% of your clients. Put the Pareto Principle to work to make yourself happy.