When you're building a beauty brand, it’s tempting to think more is better—more products, more marketing, more channels. But the reality is not everything moves the needle.

In fact, 80% of your revenue likely comes from just 20% of your products, customers, or marketing efforts. This is the Pareto Principle or the 80/20 Rule, and mastering it can be a game-changer for scaling your business profitably.

At StackedSkincare, I used the 80/20 Rule to optimize what was already working instead of wasting time, money, and energy on what wasn’t. Here’s how you can apply it to your own beauty brand.

1. Identify Your Hero Products (And Make Sure They’re Profitable)

Not all products are worth doubling down on. Your hero products should meet two key criteria:

✔ They drive the most revenue (your top 20% SKUs)
✔ They have the highest profit margins

If a product sells well but has razor-thin margins, it may not be worth prioritizing. Instead, focus on products that generate both high sales and high profits—this ensures you're scaling profitably, not just chasing revenue.

💡 Action Step:

• Pull your sales data and sort products by total revenue.
• Analyze profit margins—Are you making enough on each unit sold?
• Double down on the products that are both high-volume AND high-profit.

StackedSkincare Example: Innovating Around a Hero Product

At StackedSkincare, our dermaplaning tool wasn’t just our best-selling SKU—it also had one of our highest profit margins. Instead of launching an entirely new product, we asked:

How can we generate more revenue from the same hero product?

This led to the launch of a second attachment for the tool—allowing us to increase sales and profitability without the cost of developing an entirely new product.

💡 Takeaway:  Your top 20% of products should be your biggest revenue AND profit drivers—and whenever possible, look for ways to innovate around them to increase LTV (lifetime value).

2. Focus on Your Best Customers (Because Retention is More Profitable Than Acquisition)

Not all customers are created equal. Some buy once and never return, while others repurchase, refer friends, and engage with your brand. The 80/20 Rule applies here, too: 80% of your revenue likely comes from 20% of your customers.

Instead of constantly chasing new customers, prioritize your high-value, repeat buyers—they are cheaper to retain and far more profitable over time.

Why Retention Matters More Than Acquisition:

It costs 5x to 7x more to acquire a new customer than to retain an existing one. (Harvard Business Review)

Increasing customer retention by just 5% can boost profits by 25%-95%. (Bain & Company)

Repeat customers spend 67% more than new ones. (Business.com)

💡 Action Step:

• Run a customer analysis and identify repeat buyers.
• Create VIP or loyalty programs to incentivize repeat purchases.
• Invest in email, SMS, and personalized offers—retention marketing is far cheaper than new customer acquisition.

At StackedSkincare, our highest-value customers (those who repurchased frequently) became our most profitable audience. Instead of constantly running acquisition ads, we invested in loyalty rewards and retention strategies—which helped us increase lifetime value (LTV) and profit margins.

💡 Takeaway: Acquiring a new customer is 5x-7x more expensive than retaining an existing one. Focus on your top 20% of customers—they will drive the majority of your revenue and profit.

3. Trim Unnecessary Marketing & Scale What Works

Marketing budgets can get wasted fast when brands try to be everywhere. Instead of spreading your ad spend thin across every platform, focus on the highest-performing channels.

💡 Action Step:

• Look at your marketing analytics—which channels drive actual revenue vs. just engagement?
• If Instagram ads outperform TikTok, shift more budget there.
• If your email list converts better than paid ads, invest in email growth and optimization.
• Eliminate low-ROI efforts and scale what already works.

At StackedSkincare, we realized that email + paid ads + PR delivered 80% of our revenue, so we focused our budget there instead of wasting it on experimental channels that weren’t converting.

💡 Takeaway: Stop wasting time and money on channels that don’t perform—scale the ones that do.

Final Thoughts: Work Smarter, Not Harder

Growing a beauty brand doesn’t mean doing more—it means doing what actually works.

By using the 80/20 Rule, you can:
✔ Focus on your hero products that are both high-revenue & high-profit
✔ Prioritize your best customers to increase retention & profit margins
✔ Scale your highest-performing marketing channels while cutting waste

Instead of trying to do everything, optimize what’s already working. That’s the key to scaling profitably.