Power Law

Definition

A Power Law describes a relationship where a small number of factors or inputs account for the majority of the results or outcomes. In business and SaaS, this often means that a few key customers or products generate most of the revenue, while many others contribute far less.

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Translation

The rule that says 20% of your customers make up 80% of your revenue, which is why you're always chasing after those few big fish and quietly ignoring the rest.