The 60/40 rule is easy to talk about, but difficult to do for many entrepreneurial thinkers. Most of us have a lot to say about our idea. Why it’s breakthrough. Why it’s needed. How it works. How much money it’s going to make for the company, etc.
But, the most successful entrepreneurs practice the 60/40 rule in every interaction. The rule is simple — in any conversation, as the person who is conceptualizing, developing, selling or optimizing an idea, you should listen at least 60% of the time; and talk no more than 40% of the time.
This may feel a bit counter-intuitive to some. As an entrepreneur, we need to sell others in on our ideas, right? We need to make sure they understand why it’s such a good idea, and, when we’re launching initiatives within an organization, we need to convince all of the key stakeholders how the idea will seamlessly integrate and turn profit for the company quickly.
However, research and experience prove that the most efficient path to success is to listen, listen, listen. And, importantly, listen first, before we talk.
Listening more, and listening first with the 60/40 rule yields multiple benefits:
The 60/40 Rule Builds Relationships
Especially when driving an initiative within an organization, building relationships and advocacy is a critical success factor. Think about the last “great conversation” you had and/or a person in your life that you would happily spend time with regularly. Chances are, they are someone who has listened to you. He or she has asked you lots of questions — to learn or be inspired by you. Certainly, you talked and learned and were inspired by him or her as well, but it’s likely that you feel “heard” and “understood” with some individuals more than with others.
The 60/40 Rule Builds Understanding
When we ask the right questions and listen attentively, we build our understanding of what’s important to someone. We understand the day to day challenges that are faced by someone that might be impacted by the initiative we’re developing or selling. We understand the profit pressure that a stakeholder feels. We understand the capabilities and passion areas of potential vendor partners that we may choose to work with. We understand the lessons that an entrepreneur or investor has learned. The successful inside entrepreneur leverages this understanding to build a better innovation strategy or initiative.
The 60/40 Rule Builds Success
Listening first allows us to innovate new ways to make our strategy or tactics more relevant and more feasible. This is why it’s critical to listen first…ask more questions than the other person you’re meeting with — then, use the information you collect to talk about your idea in a way that uses their language, and addresses their opportunities and challenges. If you’re in development mode, you’re more likely to identify meaningful builds to your idea; if you’re in sales mode, you’re more likely to make the sale.
Listen more, listen first and apply the 60/40 rule this week in a few meetings and enjoy the benefits.
Photo licensed under Creative Commons 2.0 via Flickr user: Cushing Memorial Library and Archives
FAQs
But, the most successful entrepreneurs practice the 60/40 rule in every interaction. The rule is simple — in any conversation, as the person who is conceptualizing, developing, selling or optimizing an idea, you should listen at least 60% of the time; and talk no more than 40% of the time.
What is the 60/40 rule? ›
Key Takeaways. Once a mainstay of savvy investors, the 60/40 balanced portfolio no longer appears to be keeping up with today's market environment. Instead of allocating 60% broadly to stocks and 40% to bonds, many professionals now advocate for different weights and diversifying into even greater asset classes.
What is the concept of 60 40? ›
The 60/40 portfolio invests 60% in stocks and 40% in bonds. This approach provides investors with the growth potential of stocks with the added stability and income of bonds. Therefore, investors can achieve reasonable returns while keeping risk under control.
What is the 40 60 content rule? ›
A good rule of thumb to follow is a 60/40 split, where 60% of your content is informative and instructive, and 40% is a story – whether it's about a real customer or a fictional representation of one – that illustrates the larger point you're trying to make.
What is the 60 40 relationship rule? ›
It goes like this: Both partners need to treat the whole relationship like it's a 60/40 relationship. You do 60 percent of the work, and let the other person do 40 percent. “Because if you treat it 60/40, both of you, you are always trying to take that next step.
What is the 60 40 rule in social media? ›
You'll need to find the best alternatives for the most favorable outcome. The approach I've found to be the most advantageous is the 60-40 rule: 60% effort in your interactive network and 40% of all others. THE 60% RULE – This involves an assertive, interactive, well-designed networking strategy.
What does it mean if someone says 60/40? ›
So, broadly saying 60% stock, 40% bonds, okay, that's a nice starting point for a lot of people.
Does 60/40 still work? ›
While many analysts and experts predicted the demise of the 60/40 rule at the close of 2022 — a particularly brutal year for both stocks and bonds — this long-term investment strategy is looking favorable once again in 2024 and beyond.
What is the death of 60 40? ›
In this piece we explore what The Death of 60/40 means: In the current investment environment, this traditional strategy may be critically flawed over the next several years. It simply isn't compensating investors adequately for the risk they're taking on nor is it likely to help them achieve their financial goals.
What is the 60 40 rule learning? ›
Use the 40/60 rule: learn from books, videos, podcasts, courses, documentaries and experts 40 percent of the time and practice your craft 60 percent of the time. The rule of principle applies to just about anything you want to learn or skill you wish to acquire. The two goes together.
Don't just focus on short-term successes, think about your long-term goals. Use the 60/40 rule. 60% in brand, 40% in direct response.
What is a 60/40 split in business? ›
Under this strategy, the owner would pay themself 60% of earnings as a salary and the other 40% as distributions. [1] That percent split is applied regardless of the company's earnings, which makes it easy and often advised by accountants and other sources, but also problematic.
What is the 80 20 talking rule? ›
The 80/20 rule of active listening says that in any sales conversation the sales rep should spend 80% of the time listening and only 20% of the time talking. In the vast majority of cases, the customer doesn't want to know what you think, he wants to tell you what he thinks, how he feels and what he needs.
What are the 4 rules of conversation? ›
These are Grice's four maxims of conversation or Gricean maxims: quantity, quality, relation, and manner. They describe the rules followed by people in conversation. Applying the Gricean maxims is a way to explain the link between utterances and what is understood from them.
What is the 70 50 rule when speaking? ›
To maintain appropriate eye contact without staring, you should maintain eye contact for 50 percent of the time while speaking and 70% of the time while listening. This helps to display interest and confidence. Maintain it for 4-5 seconds.
