The 1% Rule: Why Some Get Everything and Others Get Nothing

Cumulative Advantage Strength

Imagine two trees growing side by side. Every day they compete with each other for sunlight and moisture. If one tree grows just a little faster than another, it will get a little taller, get more sun and rain. The next day, thanks to this extra energy, it will grow a little higher. Over time, it will drown out the second tree and will receive the lion's share of sunlight and nutrients from the soil.

Such a tree will give more seeds, which means that in the next generation there will also be more trees of this species. This process will be repeated until the trees, which were slightly better than the competition in the beginning, take up most of the forest.

The situation when a very small superiority increases over time, scientists call a cumulative advantage.

Winner takes it all

The same thing happens with people. Like trees in a forest, we often compete for the same resources. Politicians compete for votes, writers compete for a place on the bestseller list, athletes for gold medals, companies for potential customers, TV channels for our attention and time.

This effect, where a small difference in returns results in a disproportionate reward, is called the Winner Takes All effect.

It is enough to have an advantage of only one percent, one second, one ruble to get 100% of the reward.

Any decisions involving limited resources, such as time and money, naturally lead to a winner-take-all situation.

The winner gets the most

The Winner Takes All effect in individual competitions often leads to the Winner Takes Most effect in other areas of life.

Once in an advantageous position (winning a gold medal or getting a director's chair), the winner begins to accumulate advantages that help him to win again and again. What was just a small margin in the beginning is now becoming more like the 20/80 rule.

Winning one thing increases your chances of winning another. And each successive success only strengthens the position of the winners.

Over time, all the rewards and advantages end up with those who initially slightly surpassed the competition, and those who lagged a little are left with almost nothing. This principle is also called the effect of Matthew according to the quotation from the Bible "… for to everyone who has it will be given and will increase, but from the one who does not have, what he has will be taken away."

But now let's get back to the question asked at the beginning of the article. Why, after all, only a few people and organizations have most of the benefits and benefits?

The one percent rule

Even small differences in performance over time can lead to uneven distribution of privileges. This is why the right habits are so important.

It is enough to surpass competitors by only 1%. But if you maintain your advantage today, tomorrow, day after day, you will win over and over again due to this advantage. And each victory will bring better results.

This is the 1% rule. You don't have to be twice as good to get twice as much. You only need to be 1% better.