How Freight Brokers Make More Money with the 80/20 Rule


So what is the 80/20 rule and how can freight brokers and freight agents leverage it to significantly increase their sales?

The 80/20 rule, also known as Pareto Principle, was originated by Vilfredo Pareto in 1906 and it states that 80% of the output comes from 20% of the input.

Uhhh ok, so what does that mean?

My easy to understand translation is simple, it means that 20% of your activities yield you 80% of your results.  With that in mind, it can also be used when analyzing your customer base and revenue.  It is not uncommon for a 80% of a freight brokers sales to come from 20% of his customers.

The “80/20 rule” can be very valuable strategy to help freight brokers and agents to significantly grow both sales and profits.  I started applying the 80/20 rule to my businesses back in the late 90’s and since then have seen incredible results.

But how?

Step 1 – The key is to first identify the 20% of activities that drive 80% of your results and then to spend more time doing those activities.  In other words, what are the primary income producing activities that drive revenue for your business?

Step 2- Another way to leverage the 80/20 rule is to identify the primary characteristic of the top 20% of your customers.  These customers will typically account for about 80% of your revenue.  Once identified, focus the majority of sales and marketing efforts around landing more customers like them.

This approach is a key component I used to grow my freight business from startup to over $45 million a year in sales in under 10 years.

The fact is, not all business related activities are created equal.  Some are harder, easier, higher value, lower value, critical, non critical, etc and as a freight broker and business owner it is easy to find yourself being “busy.”

The big question is, are you “busy” doing and investing your time and resources into things that are going to give you a good return on your investment.  This is where the 80/20 rule can be most effective for freight brokers and freight agents!

Did this article help you out?  If so, I would greatly appreciate it if you would comment below, SHARE on Facebook, Twitter, LinkedIn and be sure to click the g+1 logo and let Google know too!

P.S. Did you know that my Freight Broker  and Freight Agent training course comes with a 60 day 100% money back guarantee?  Give it try and if your not happy for any reason…I will personally refund your money!!!!


Dennis Brown
Freight Broker Trainer / 6X Inc. 500 Fastest Growing Freight Broker

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