Sunday, November 6, 2011

“80-20 rule”

This pattern called “power law” or “80-20 rule” is found everywhere. 20% of people owns 80% of wealth. 20% of websites get 80% of all traffic on the Internet. 20% of the articles on your website gets 80% of your readers. And, so on... The reason why software developers rush to every new market (like Facebook Apps, iPhone Apps, Android Apps, etc..) is because this curve is flatter at the beginning. 20% does not grab 80% of the market because the market is not yet so efficient. Everyone still has a chance to achieve a modest success. But even the time it takes for a new market to reach the 80-20 rule is getting shorter and shorter.

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