The 80/20 Principle

[Steven_Draker]

The 80/20 Principle states that 80 percent of your income is generated from just 20 percent of your total customer base. This well-known theory highlights the 20 percent of returning customers, the very customers towards whom you want to focus.

 

I'm wondering if this principle applies also to the escort business?

 

Both escorts and clients are welcomed to chime in.

 

Steven Draker ~

 

http://www.hotsexystud.com/uk

http://www.daddysreviews.com/review.php?who=steven_draker_brussels

[Kevin Slater]

Neat question. Also called the Pareto principle (named after the economist who famously observed it), it applies to our biz as well. The data usually doesn't perfectly fit 80/20, but the top fifth of an escort's clients should account for the bulk of his income. The upshot being that good relationships with repeat clients over a course of time are golden.

 

I would think that traveling escorts would notice it less than we sedentary boys in that they give clients less chance to build that history before they're on the road again, presumably having the effect of leveling out more dollars across a larger population. But I'd bet the substantial clients in each city are what make the trips worthwhile, keeping the principle well in play.

 

I just watched on old episode of 'The Wire' in which a drug dealer applied other biz school concepts to his trade. I love to see these ideas used outside of traditional business.

 

Kevin Slater

[uwsider]

As a client who has developed what I consider close relationships with a few escorts, whom I see regularly, it is my understanding that the 80/20 Principle is pretty accurate. From what I'm told it is that handfull of weekly repeaters who provide the base and bulk of income, and who also have the best experiences because of the respect and intimacy that develops in an ongoing relationship, as opposed to a one time romp.

[Guest flamengo]

It would be interesting to know what "principle" applies to escort income and income taxes paid.

[Bigaguy]

The 80/20 Principle in general applies to me as a client (not neccesarily exact - but in general)I tend to like repeats with guys I know and have had good experiences with - plus I will chime in if someone is looking for an endorsement or suggestion which means I am helping the escort build their business.

 

Most business concepts apply to all business to some degree or another including escorting. An escort whether locally based or traveling is basically at all times building a business. Repeat business and referrals is usually the result of being a good business person and is much less hassle than new business.

 

So I will apply the referral part of the concept right now - I can whole heartedly recommend based on actual experience -

 

Small Town John - Best Top

 

Michael - Fort Myers/Sarasota - Best Bottom

 

Tristan Waters - Good All Around

 

Maybe this post will cause somebody to call one of the above guys not today or even tomorrow but at some point.

 

Bigaguy

[Bigaguy]

The tax reporting is one of two methods

 

"Five for me One for the government Principle"

 

or

 

"What Cash in My Mattress Principle"

 

Bigaguy

[Bigaguy]

I can't believe I am investing so much time in this particular thread - but it seems safer than some of the others currently in progress.

 

Another version of the 80/20 Principle which I would love to hear comment on would be that -

 

The top 20% of escorts make 80% of the income.

 

This is true in many businesses.

 

When you think of the large numbers of reviews some escorts have amassed - if they are in proportion to their income - perhaps it is true also.

 

Bigaguy

[Kevin Slater]

Of course if both these models are correct, that'd suggest that the top clients of the top escorts are responsible for the vast majority of the industry: a mere four percent of the client base is providing 64% of all moneys spent on escorts.

[Guest novabear22031]

>The 80/20 Principle in general applies to me as a client (not

>neccesarily exact - but in general)I tend to like repeats with

>guys I know and have had good experiences with - plus I will

>chime in if someone is looking for an endorsement or

>suggestion which means I am helping the escort build their

>business.

 

Though I am new to hiring escorts, I know that I would prefer repeats myself. In fact my first one Dirk of NO is one that I would love to see again. And wish he were more local to me for short visits. But he would be at the top of my list for another cruise as a companion.

 

>Repeat business and referrals is usually the result of being a

>good business person and is much less hassle than new

>business.

 

I work in a business sector that is getting tougher by the day because of the Big Box stores and the internet. We survive because of repeat business and referrals.

 

With escorts, referrals IMO matter the most. Just look at the many 411 posts here asking about non-reviewed escorts here on DR. And in some cases I look at the reviews as being a referral.

 

In fact I have a meeting with a reviewed escort here for this weekend, that I found on another site - but traced him back to his reviews here. That made the difference for me.

 

>So I will apply the referral part of the concept right now - I

>can whole heartedly recommend based on actual experience -

>snip<

>Michael - Fort Myers/Sarasota - Best Bottom

 

From your comments and his reviews here, I will add him to my list if I get down his way. Sad thing is, his website seems to be off-line. Since I am not ready to hire for a couple months down there, I didn't want to make a call.

 

>Maybe this post will cause somebody to call one of the above

>guys not today or even tomorrow but at some point.

>

>Bigaguy

 

Well it worked on me....

 

Thanks

[Bigaguy]

I also consider the reviews as referrals that's how I originally found Michael.

 

This is my first time trying to post a link so here goes.

 

http://www.men4rentnow.com/ds/index.asp?cmd=view&id=140870&Login=SWFLhottie

 

 

Bigaguy

[Louis]

I heard of the 80/20 Principle many years ago, and have seen many examples of it. I have seen it at work, with regard to 20 percent of the people doing 80 percent of the work. The same can be said for community groups, and sports organizations. 20 percent of the stock (part numbers) in a warehouse usually generates 80 percent of the profits, and that is an easy one for me to prove.

It has to work out to the same degree with escorts, particularly if one is very good escort. If a person isn't that great of an escort then there I would think that repeat business would be lower.

I am inclined to think that 20 percent of the escorts generate 80 percent of the business too. One reason for that is a lot of guys won't see an escort that hasn't been reviewed or doesn't have good reviews.

[Guest n2colour]

That accounts for Geffen, Diller and Klein, I assume. :+

[Kevin Slater]

The day Phyllis Diller hires me is the day I leave the business.

[+ deej]

>Of course if both these models are correct, that'd suggest

>that the top clients of the top escorts are responsible for

>the vast majority of the industry: a mere four percent of the

>client base is providing 64% of all moneys spent on escorts.

 

 

That's probably not far off. Judging only by reviews, if just KY_TOP and SilverDollar stopped hiring escorts the entire economic base would shift. (I suspect we're safe with those two, though!)

 

I know that my hiring habits in the past conformed to the 80/20 rule. When I found a guy I liked, I'd hire him more and more.

 

Now add just a FEW people like Sir Elton who can afford to hire the entire Bel Ami stable whenever he wants and you really do concentrate the spending power at the top of a very small but very tall pyramid.

[JT Brooklyn]

There are those "Working Guys" who also believe in the "One Sugar Daddy" is worth 20 Clients also!

 

Definitely Cuts down on the "Overhead and Travel Costs Tremendously! LOL :P

[JT Brooklyn]

Bigaguy...Michael is a Hunk. He did an Overnite in Brooklyn. Very Interactive! Gorgeous Bod! :P

[+ Charlie]

Don't forget Oliver, Prince of the Desert!

[buckguy]

FWIW, a British escort I hired (in London) said that Sir Elton basically hired who ever was new, so it may be that he's more of a wealth spreader than a contributor to the 80/20 pattern.

[xanthus69]

By report, Elton John favors the escort known as "Johann" when he finds himself on tour in Chicago.

[Guest zipperzone]

>FWIW, a British escort I hired (in London) said that Sir

>Elton basically hired who ever was new, so it may be that he's

>more of a wealth spreader than a contributor to the 80/20

>pattern.

 

Call me stupid, but I was sorry to hear that Elton cheated on his partner. Unless they have an "arrangement"

[JT Brooklyn]

Zip..IF they are 3 Ways..It's not cheating! A Famous Loophole! LOL

:P

[Rick Munroe]

We're supposed to get paid?? Now you tell me! :o

[+ purplekow]

>We're supposed to get paid?? Now you tell me! :o

 

 

You probably want to check Derek's sock drawer, there probably is a wad of cash there, safe from your spending it on Peg Bundy posable dolls.

[Rick Munroe]

They made a Peg Bundy doll?? Now you tell me...now that Derek's cut off my eBay account. :o

 

P.S. Derek has a sock drawer?? The longtime companion is always the last to know. :o

[Steven_Draker]

>Neat question. Also called the Pareto principle (named after

>the economist who famously observed it), it applies to our biz as well.

 

Thanks, Kevin for your reply. I knew that a guy with your background had the answer. Since my return rate is higher than 20% all this was pretty confusing. Now that you say that the top fifth my clients account for the bulk of my income that makes more sense. I'd agree.

 

S. Draker ~

http://www.hotsexystud.com/uk