> ## Documentation Index
> Fetch the complete documentation index at: https://hc.pillargtm.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Economics Rules

> Revenue economics and financial health monitoring

# Economics Rules

The Economics rules evaluate financial health at the organizational and territory level. They monitor budget adherence, unit economics, headcount plan viability, and sales and marketing efficiency.

## What It Monitors

### Budget Adherence

Detects when actual spend exceeds planned budget beyond configurable thresholds, helping finance and RevOps teams catch overruns early.

### Territory Economics

Flags territories where the cost-to-yield ratio indicates spending is too high relative to revenue generated, signaling a need for rebalancing.

### Headcount Plan Viability

Evaluates whether headcount scenarios yield positive P\&L impact, helping leadership make data-driven hiring decisions.

### Pipeline Coverage

Checks whether pipeline coverage meets healthy multiples of quota, alerting when coverage gaps could jeopardize attainment.

### Unit Economics

Monitors LTV:CAC ratio and payback period to ensure sustainable growth economics.

### Acquisition vs. Retention Balance

Flags when investment in new customer acquisition is disproportionate relative to retention spending.

### Sales & Marketing Efficiency

Monitors S\&M spend as a percentage of revenue, alerting when efficiency metrics fall outside healthy ranges.

## Economics Signals

Each economics rule can generate a corresponding signal when thresholds are exceeded:

| Signal                              | Description                                             |
| ----------------------------------- | ------------------------------------------------------- |
| Budget Overrun                      | Actual spend exceeds planned budget                     |
| Territory Below Breakeven           | Territory cost-to-yield ratio is too high               |
| Headcount Plan Risk                 | Headcount scenario yields negative P\&L                 |
| Unit Economics Degradation          | LTV:CAC or payback period outside healthy range         |
| Retention vs. Acquisition Imbalance | Over-investing in acquisition relative to retention     |
| S\&M Efficiency Warning             | Sales & Marketing spend is too high relative to revenue |

All economics thresholds and signal severity levels are configurable per organization.

> Detailed scoring methodology, including exact thresholds, scoring curves, and trigger conditions, is available in the PILLAR Implementation Guide provided to active customers.