What is 80/20 Rule ? Where it is used ?

80% of your sales come from20% of your clients.80/20 rule is also called as Pareto principle.

A much-used maxim in business and finance, the80-20 rule is a popularization of the law of diminishing returns in economics. That is, as you put increasing effort, resources or inputs into a given task or production process, you usually tend to receive proportionately less output or returns.

Variations of the80-20 Rule: The80-20 rule has many variations. Among them are:

• The best20% of a firm’s employees may generate80% of its output.
• The best20% of a firm's customers may produce80% of its revenues or profits.
• You can be80% right with only20% of the effort needed to be100% correct.