• Products
  • Insights
  • Practice Management
  • Resources
  • About Us
A simple rule for retaining your best clients and gaining new ones

The 80/20 rule

In your practice, a vital few of your clients drive a disproportionate amount of your business. The Pareto Principle, or “80/20 Rule” as it is frequently called, affirms that 20% of your customers represent 80% of your sales. You can use this rule to your advantage to retain your best clients and acquire new ones, ultimately increasing your revenue.


Tip the scales in your favor

Many financial professionals build their practice by default—it just happens. But by leveraging your practice’s specific strengths, you can design, or redesign, your practice to create growth and retention. The first step is recognizing the 80/20 rule and creating a proactive, tiered service plan. You can do this in three ways:

  • Playing Defense by protecting your biggest and best relationships—the "vital few"
  • Playing Offense by replicating those vital few relationships
  • Targeting and developing your most viable prospects, or "MVPs"


How to get started

Download the financial professional worksheet below. It will help you see if the 80/20 rule holds true for your practice. You can even take it a step further using the 95/5 rule, to see how many households account for 95% of your revenue. The worksheet will help you recognize your most valuable clients, which will help you design a tiered service plan. This in turn will help you to retain your best clients and acquire new ones.


Resource icon Resources for Financial Professionals



Click here to order materials >

Next Steps

1 Download the Create a Practice By Design Rather Than By Default worksheet 
2 Complete the grid on side 1 of the worksheet

The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. HFMC, Lattice, Wellington Management, SIMNA, and SIMNA Ltd. are all SEC registered investment advisers. Hartford Funds refers to HFD, Lattice, and HFMC, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

© Copyright 2024 Hartford Funds Management Group, Inc. All Rights Reserved. Not FDIC Insured | No Bank Guarantee | May Lose Value