SwissResearch 2#Pareto Principle on Steemit? Or why Steemit is the first economy that helps the poor get richer

What are you are you 80/20  or are you 20/80?

I am trying to make it typically sociological data+ theory driven research. First we have to define each item to understand the whole.

Pareto Principle

 Vilfredo Pareto is a Italian   economist who noted  80/20 connection while at the University of Lausanne in 1896, as published in his first paper, "Cours d'économie politique". Essentially, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that about 20% of the peapods in his garden contained 80% of the peas.[3]It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients." Mathematically, the 80/20 rule is roughly followed by a power lawdistribution (also known as a Pareto distribution) for a particular set of parameters, and many natural phenomena have been shown empirically to exhibit such a distribution.[4]The Pareto principle is only tangentially related to Pareto efficiency. Pareto developed both concepts in the context of the distribution of income and wealth among the population. 

 quote from Wikipedia https://en.wikipedia.org/wiki/Pareto_principle

(Why should I do the work if someone already has done the work?)

Steemit

Steemit is a social news service which runs a blogging and social networking website on top of a blockchain database, known as Steem. 

quote from Wikipedia https://en.wikipedia.org/wiki/Steemit

(it is highly despised at the university to quote from Wikipedia and basically means you want to use only 20% of your time to produce 80% of the result) 👌🏻 

So now we need to put these two items together.

1+1 = ? or 1x1 =? But how?

1+1= 2 or 1+1= 0

What do you think is right?

If we are from the traditional background we would say the result is 2. But if we are more modern, then we say a computer would say the result is 0, since in binary there are only 1 or 0. But why are we supposed to do Addition and not Multiplication or Substraction? So Sociology tries to give numbers a meaning.

So let's first look at the Economical perspective of this thesis:

20 % of the Population owns 80%? Let's see if this is true.

We will use the data's from https://steemwhales.com/

Steem Power distribution

1 ‰ of the Steem Users own  about 71% of the Steem Power.

The next 1% own 21% from the whole Steem Power

Dolphines make the next 6.78%

The minnows make the last 1%

At the moment distribution is unbalanced since  70,731,217  Steempower is owned by Steemit and once more accounts  are created the distribution gets flatter. Most of the  1 ‰ are not even voting and not voting for themself, so we expect the distribution gets flater once more people are joining steemit.

Posting Rewards

Let's look for posting rewards, we can find them here:

https://steemwhales.com/?p=1&s=pr

40%

40%

So here we see that 1% of Authors get 80% of the reward.

Curation Rewards

around 90% is earned by 1 ‰

So currently the Pareto Principle isn't true on Steemit, the reason for that is, but its pretty new, so the money is concentrated, but as Steemit grows and because more money get distributed, we are reaching 80/20 distribution of wealth longterm. So how does that help you or me?

So there are basically two types of strategies that I suggest.

Let'ts first look at the obvious one.

80/20 person

Let's look at @sweetsssj

She makes an average of  1257.705 SBD per post

She has a good strategy. She currently makes one post per day. Let's she uses 8 hours per day to make a post, including making pictures, traveling editing etc.

I think she does 80% of the Quality that she can do, and gets 80% paid of what she can do.

80% of the time is 8 hours so doing 100% would mean that she would use 10 hours and she would get burned out longterm and not able to make 1257 SBD per post. If she would invest 2 more hours we would maybe earn 20% more, maybe not. so earning, so earning 1571.25 SBD is just 314$ more. 

Personally I think she is the 80/20 type. Let's see if she would try to be a 20/80 person, she would make 8 posts per day and instead of using 8 hour per post, she is using 20% of the time 1 hour and 36 min per post, expecting to make money more, because more post means more money? 

But she would just make 20% of the money per post in the beginning, which would be let's say 251.4 SBD per post, which is still the same money, but longterm she would get her followers bored and I doubt that people will upvote her 5 times, and probably earn only 251.4 SBD per day. So personally her strategy seems to be best to concentrate on quality.

80/20 person conclusion

@sweetsssj can't scale her rewards by making more posts and lowering quality so the 80/20 seems to be the best and rewarding strategy for her. Her rewards come mostly from big whales from @abit and others. But also her rewards will probably not double if we would have double the amount of steemit user. I would call her a good ambassadeur for steemit so she is like the Miss Steemit.

20/80 person

Lets now look at the biggest power poster that isnt a bot,  25,783 posts

 @Mindhunter is the person that posts most, but isnt a bot :D

68 Post with a Payout of 555 SBD and an average of 8 SBD

It is still amazing, he I would say is the person that is more the 20/80 type. He makes in much shorter time more posts, lets say daily 10 posts and get daily reward of 80 $, which leads to 560$ weekly.

He makes good posts, but and many, but you cannot compare it with the quality of @sweetsssj.

He is a power poster that want to share as many of his ideas, using let's say average of 1-2 hours per post, posting about what is new and hot and trendy.

He could try to make let's say only one post per day, but and would be able to get 80$ per post, but he would need to focus more on quality. 

He has a  the Steemit daily Dose, but he talks about many different topics from Religion and seems to love sharing pictures and many more things. I think he wouldn't feel happy just making 1 post per day, the same way like @sweetsssj would have to make 10 posts per day.

20/80 Conclusion

So how does he benefits from his strategy? He basically makes many different friends with different interest and if he would just make 1 post per day he would just be able to address one Group of people, if now his follower bases gets bigger, because Steemit gets bigger then also is reward wil double and scale. He currently has a follower base of 1200 Follower, and the strange thing is he doesnt follow anyone :D. So I wonder how he finds good contents :D. His highest vote reward from 1 person is @gigafart 34$. His rewards comes from many different people that upvote him, he his follower base will grow then he will be easier to grow is rewards.

Conclusion for you

When you are new and you don't already have fan base like the famous people here, for example

@jerrybanfield @sweetsssj @dollarvigilante

The best strategy I think is to do the 20 80 Strategy, as you can learn to get more people, and also your rewards will scale if you get more followers.

If you are already famous and you nearly maxed out your reward, you cant double your rewards that easy anymore.

But you are poor and unknown double your rewards is very possible.

Steemit is the first economical system that helps the world to become more equal, our current economical system based on debts and stocks helps the rich gets richer and the poor get poorer.

So longterm steem it will help the world become a better place and more equal because of free speech and freedom of voting.

If you share my thought please consider to resteem it and upvoting it. Tell it anyone that you know and let's help to make the world with the power of steemit a better place.

If you want to help to mentor the poor from african countries and developing countries

consider joining my FB Group, we currently got only 15000 member but I want to make it a bigger group.

Steemit Booster Group

https://www.facebook.com/groups/beautifulkenya/

I want to use education, training mentoring people to make the world a more equal place, people and people with a working  and mentoring mentality are needed.

I try to establish a buddy system on steemit booster group so we can multiply knowlege and a better life for everyone.

This is the idea for my Africa Strategy now I need the help from the community, I am just a Swiss Researcher focusing on system theory, I am not a YouTuber, I am not an Ambassadeur, I am not a Designer

I need the cooperation from others here is why

https://steemit.com/cooperation/@teamsteem/cooperation-is-humanity-s-greatest-asset

So anyone that want to join our journey to make a better world then join me.

If anyone is from Africa or want to work in Africa please let me know so we can first connect, alone we are weak but together we are strong.

Best is to tell from which country you are so we can group them a bit

Currently I want to focus on

a) Kenya/East Africa

@africangold

@bitcoinkenya 

@coincatcher

b) Nigeria/Ghana /West Africa

@tj4real

 @kwakumax  

@philthegreat

@foreigner

@othniel

@ortigas100

@xpency

@tj4real

@gbenga

c) Botswana/South Africa

@bitcoinlady

d) I don't know many from Central Africa, since my french is bad

To help making connecting easier I suggestion using the #africantrail for sharing content