80 20 rule - how to apply in your freelance business?

80 20 Rule - Things You Must Do To Make Your Freelance Practice Profitable

Are you aware of the 80 20 rule?

Now think about your practice for a while – do you have clients that you enjoy working with? Do you also have clients that you wish you didn’t have to deal with? Well, you are not alone here. I’m sure you can even identify your dream clients. And how about trouble making clients who always seem to nitpick on your work, make late payments or even miss payments?

It is believed that 20% of the population make 80% of the contribution and by the same token 20% of the population cause 80% of the problems. The same 80 20 rule applies to your translation business. Recognizing this will help you adjust your marketing strategy and focus on attracting and keeping more ideal clients, which in turn will bring you more income. So here are a few tips to apply this 80 20 rule:

1- Target the right market

Before you even consider offering translation service, make sure you target the right audience. Not everyone who needs your service is able to pay for it. If someone just wants to get something for nothing, you may be wasting your time trying to chase them.

That’s why in my practice I’ve always been cautious about answering job requests posted on freelance websites – it’s too easy to fall into the convenient route. You may be able to save a buck or two by avoiding marketing, but in the end you’ll probably find yourself trapped in the no ending cycle of low pay no gain kind of job situation.

The best fit target market is not the one that’s quickest and easiest to find, but rather the one you make effort to identify. They want the value of your expertise more than anything. They are willing to pay for a great result. They can be demanding with regards to quality of service, but they never hesitate on paying a fair price for what they get.

2- Focus 80% of your energy on 20% of your best clients

Just as the 80 20 rule says, they are always 20% of your clients that bring 80% of your profit. So spend more time with them. Listen to them, cater to their needs, get feedback from them and keep in touch with them. They are the ones that make your business thrive. At times, they may even give you valuable advice or new business ideas.

These clients are often very loyal too. They are more likely to bring you referrals when they are happy with your service. This 80 20 rule also means you should drop those unpleasant clients who constantly seem to be complaining yet they don’t leave you and find someone else. They seem to know translation better than you by nitpicking your work. They always like to bargain even when your rate is very reasonable.

My suggestion? Just let them know that you don’t offer what they are looking for and that they should find someone else to do the job.

3- spend most of your time on the activities that will bring you income

Not all activities are created equal in terms of generating revenue. You have to know which of these activities are critical to your business and which are less important. As you have only limited time and energy you need to prioritize your tasks – 20% of the tasks that bring you 80% of your profit – another 80 20 rule.

For me the most crucial priorities are two things – marketing and product creation. Marketing is the livelihood of my business and product creation generates more income than simply trading my hours for money.

4- find more time by getting help

No matter how motivated and how capable you are, you can’t do everything by yourself. The truth is, if you want to make more money you need help. Whether it’s outsourcing your translation work or sharing marketing responsibilities with others, you have to come up with a solution to both meet the needs of your clients and your business. You can even exchange and maximize your resources with other professionals or businesses. They may be looking for someone just like you.