Power of the Paretto Principle for Steemians
The Pareto principle, also known as the law of the vital few, is an illustration of a "power law" relationship. It looks as a straight line on logarithmic scale. It states that, for many events, most effects come from only few causes.
To check if this principle is suitable for STEEM network, I collected all parent posts written till yesterday midnight. Then I summarized all posts values in SD for every single author. And then splitted total post earning in 10% intervals, counting the number of authors in each interval.
It was a total of 9157 steemians in result. Here is users/earning diagram and row table data for analysis:
As you can see, 90% of total posts value is earned by only 6% of Steem authors.
What does it mean for an average user?
Here in Steem we are dealing not with 80/20 rule but ever stronger 90/6 proportion. That mean all of Pareto's conclusions are taken into effect. For example, one may expect that:
- Much of your posts will not produce any earning
- What you see is not always true - there are always hidden factors in STEEM network
- What you expect to receive as a result tend to be different from what you get (there are always hidden forces here)
- Most successful content gets value due to the action of a small number of high-power factors
Conclusion: You can't predict what factors will work - just try until you get a positive effect and then follow that way as long as the idea does not cease to work.
I will check the current 90/6 proportion a month later, but absolutely sure it will be the same. There are no any evidence to move this ratio to 90/10 or better.
I bet one (1) steem that the 6% will decrease, or more authors will partake of the earnings vs. todays numbers. To me, that is the only logical case since STEEMIT is still in full growth mode. So the earnings will start to spread to others, especially as those with established social media accts. Make their way to STEEMIT.
Full $TEEM Ahead!
@streetstyle
A twist...if you are an active participant as Steem grows you will become part of the vital few whereas the vital few is in a basic example the current vital few 10% of 1,000 is 100. In the future 10% of 100,000 is 10,000.
You have already arrived if you stay active and produce good content. Its just a matter of being found and creating your niche constituency.
I hope this really happen.
With current user base growth we will double the number of active accounts soon. And then it will be a good time to check the ratio again.
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More precisely, Zipf's law. It's prevalent everywhere, and Steemit is no exception.