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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryStrategy & FrameworksPareto Principle (80/20 Rule)

Strategy & Frameworks

Pareto Principle (80/20 Rule)

The observation, named by Joseph Juran after Vilfredo Pareto's 1890s findings, that roughly 80% of effects come from 20% of causes.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

The Pareto Principle, or 80/20 rule, is the observation that roughly 80% of effects come from 20% of causes. Joseph Juran named it after Vilfredo Pareto's findings on wealth distribution in the 1890s. In marketing, it often appears as a small share of customers, products or channels driving most revenue.