This principle, named after economist Vilfredo Pareto, states that roughly 80% of effects come from 20% of causes. In the partnership world, this translates to 80% (or more) of revenue often being generated by only 20% of partners.

Typically, a small group of top-performing partners drive the majority of results. The remaining partners, though greater in number, contribute a smaller portion of the overall revenue.

Understanding the 80/20 rule is important for effective partner management. By identifying the small group of partners that are driving the most revenue, extra attention and support can boost their growth impact.

For the remaining 80% partners, it offers an opportunity to try new initiatives to find ways to help them reach their full potential.

While this principle is not rigid, it’s a great guideline for understanding the distribution of results within a partner program. By recognizing this imbalance, targeted strategies can be developed to optimize both sets of partners and ultimately drive more revenue.