80/20 Rule

Also known as the Pareto Principle. As applied to the channel, the rule states that a minority of vendor partners (10 to 20 percent) generate most of the indirect revenue (80 to 90 percent).

Related Links:

• Two Realities: Truth and Fact (and They’re Not the Same)
• Vendors Shouldn’t Gloss Over Partners’ Relative Value
• Stop Bragging About How Many Partners You Have
• Scale Matters, but the Channel has Size Limits
• Solving the Recurring-Revenue Conundrum
• Good Partners Produce, Great Partners Contribute