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I still can't wrap my head around this concept that 5% requires support. Tim Ferriss isn't right about everything, but his bit about firing your worst customers

I still can't wrap my head around this concept that 5% requires support. Tim Ferriss isn't right about everything, but his bit about firing your worst customers is dead on. The Pareto principle suggests that 20% of your customers cause 80% of your workload, and the sensible thing to do is drop those customers. If it's only 5% instead of 20%, it seems like a no-brainer to me.

eurleif 14y ago
It really depends what kind of business you're building. If you rely on the network effect, for example, 5% of your user base helps to lock in the rest of your users, and so losing it may have a greater overall impact than just 5%.