Economics Rules (ECON-001 to ECON-007)
The Economics rules evaluate financial health, budget adherence, unit economics, headcount plan viability, and S&M efficiency. Higher triggered scores indicate greater financial risk.Rules
ECON-001: Budget Overrun Detection
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 6 |
| Description | Checks whether actual spend exceeds planned budget by more than 10% |
| Scoring | ≤ 5% variance = 100, ≤ 10% = 75, ≤ 20% = 40, ≤ 30% = 20, over 30% = 5 |
| Trigger | Variance over 10% |
ECON-002: Territory Below Breakeven
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 7 |
| Description | Flags territories where cost-to-yield ratio exceeds 0.30 (spending >30% of revenue on sales cost) |
| Scoring | ≤ 0.15 = 100, ≤ 0.20 = 80, ≤ 0.30 = 60, ≤ 0.50 = 30, over 0.50 = 5 |
| Trigger | Cost-to-yield over 0.30 |
ECON-003: Headcount Plan Risk
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 8 |
| Description | Evaluates whether the headcount scenario’s net P&L impact is negative |
| Scoring | at or above 50K = 80, at or above 100K = 30, below -$100K = 5 |
| Trigger | Net P&L impact below $0 |
ECON-004: Pipeline Coverage Gap
| Property | Value |
|---|---|
| Category | Pipeline Health |
| Weight | 6 |
| Description | Checks whether pipeline coverage is below 1.5x quota |
| Scoring | 3x+ = 100, 2.5x+ = 85, 2x+ = 70, 1.5x+ = 55, 1x+ = 30, below 1x = 10 |
| Trigger | Coverage below 1.5x |
ECON-005: Unit Economics Degradation
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 7 |
| Description | Checks LTV:CAC ratio (under 3 is poor) and payback period (>18 months is too long) |
| Scoring | LTV:CAC below 2 = max 10, below 3 = max 40, below 4 = max 70. Payback over 24mo = max 10, over 18mo = max 35, over 12mo = max 65 |
| Trigger | LTV:CAC below 3 or payback over 18 months |
ECON-006: Retention vs Acquisition Cost Imbalance
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 5 |
| Description | Flags when acquire-vs-retain cost ratio exceeds 4.0x |
| Scoring | ≤ 2x = 100, ≤ 3x = 80, ≤ 4x = 60, ≤ 6x = 30, over 6x = 10 |
| Trigger | Ratio over 4.0x |
ECON-007: S&M Efficiency Warning
| Property | Value |
|---|---|
| Category | Risk |
| Weight | 6 |
| Description | Checks if Sales & Marketing spend exceeds 55% of revenue |
| Scoring | ≤ 30% = 100, ≤ 40% = 80, ≤ 50% = 60, ≤ 55% = 40, ≤ 70% = 20, over 70% = 5 |
| Trigger | S&M over 55% of revenue |
Economics Signals
Each economics rule can generate a corresponding signal:| Signal Type | Family | Severity Logic |
|---|---|---|
budget_overrun | ECONOMICS | CRITICAL over 25%, WARNING over 10% |
territory_below_breakeven | ECONOMICS | CRITICAL over 0.50, WARNING over 0.30 |
headcount_plan_risk | ECONOMICS | CRITICAL if P&L below -0 |
unit_economics_degradation | ECONOMICS | CRITICAL if LTV:CAC below 2, WARNING if below 3 |
retention_vs_acquisition | ECONOMICS | CRITICAL if ratio over 6, WARNING if over 4 |
sm_efficiency_warning | ECONOMICS | CRITICAL if S&M over 70%, WARNING if over 55% |