Originally pointed out by the Italian economist Vilfredo Pareto (and also known as Pareto’s Law), the 80/20 principle is the well-documented but counterintuitive fact that 80% of effects or results come from only 20% of all input.

For example, most sales will come from only 20% of the product line. Twenty percent of a carpet gets the majority of its wear and tear. And applied to personal life, 80% of happiness comes from less than 20% of your time.

While the specific ratios will vary, the principle aims to show us the fundamentally unbalanced way the world works.

At an intellectual level, a ratio of 50:50 makes sense in relation to effort put in and results gained. If you put in a ‘good’ effort, you will get a ‘good’ result. If you ‘work hard’, you can expect a certain level of reward.

This mentality has driven society for generations. A clear work-reward equation creates stability: mediocrity is accepted and conformity rewarded.

Unfortunately, as Richard Koch argues in his bestseller The 80/20 Principle, this is no longer the world we live in.

In the new world, mere competence can no longer be rewarded with success. You must do something which comes easily and which you love. This will give you a tremendous advantage over others and see you rise to the top of your field – or create a new field.

Only this type of effort, which may not really seem like ‘work’ compared to what others do, will bring the big rewards. In the 80/20 world, unlike the old one, those who apply its logic can expect exponentially greater returns.

According to the 80/20 principle, it makes perfect sense that Michael Jordan could earn more than half a dozen basketball teams put together, because of the supreme skills displayed and the corresponding entertainment provided.

The fact that stars (including actors and influencers) earn seemingly ridiculous amounts should tell us that “only by fulfilling oneself is anything of extraordinary value created”. Simply by being more of who you are, you win.