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80% of your success comes from 20% of your effort

Let’s face it, running your online business or hobby site requires a lot of time. Since time is a premium, you should focus your efforts on the tasks that bring in the most revenue for your business.

That’s why you should focus on the Pareto principle:

The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes.

Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.

It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients”. Mathematically, the 80-20 rule is roughly followed by a power law distribution (also known as a Pareto distribution) for a particular set of parameters, and many natural phenomena have been shown empirically to exhibit such a distribution.

So how can you use the Pareto Principle to make more money?

1. Stop being a server admin.

Yeah, it’s fun to install, configure, and troubleshoot applications you want for your website. However, doing this is zapping your effectiveness.  I can’t tell you how many times I’ve been dragged into productivity killing tasks involving troubleshooting web applications I’ve installed or my employees need help with.

Quite simply… installing, configuring, and troubleshooting should be left to the pro’s. You should be focusing on what you do best – growing your online business.

After all, if customers aren’t coming through the site, then you aren’t making money, right? Read more

DreamHost Pledges Support to OpenStack Project

Webmaster Toolbox – BREA, CA – DreamHost, a global full-service web hosting company, today announced its commitment to support the development of OpenStack, an open source cloud operating system and global development community with more than 75 participating organizations.

DreamHost, an established long-term player in the hosting space, has been a strong supporter of open source software and the open source community for many years. The promise of OpenStack — driving open standards for public and private clouds — is a benefit to all community participants, users and to the rapidly changing hosting industry at large. OpenStack aims to be simple to implement, massively scalable, feature-rich, and above all else, open. Read more