Pareto principle

statistical principle about ratio of effects to causes

AI overview

The Pareto principle is a statistical observation that a small number of causes often produce a large proportion of effects—for example, a business might find that 20% of its customers account for 80% of its sales. Understanding this principle matters because it helps people and organizations identify and focus their efforts on the few factors that actually drive most of their results, rather than spreading resources equally across everything.

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Article

The Pareto principle may apply to fundraising, i.e., 20% of the donors contributing towards 80% of the total.

The Pareto principle (also known as the 80:20 rule, the law of the vital few and the principle of factor sparsity) states that, for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few").