E

ELYT Stress Test

Compensation Plan Margin Analysis

v4.015 Tiers
Best Case - Balanced Growth
Ideal scenario: balanced tree, high activity, low chargebacks. Tests if margins hold even when everything goes right and many affiliates qualify.
Healthy
Total Revenue$27.68M12 weeks
Total Compensation$11.71M42.3% of revenue
Company Margin$15.97MAvg 57.7%
Pool Point Value0.287Cap hit 12/12 weeks
Margin Gauge
-100%57.7%100%
LossBreak EvenProfit
Team Bonus$11.07MBinary pool
Fast Start$147.3K3 in 30 bonus
3 & Free Cost$487.7KLost subscriptions
Worst Week54.6%Lowest margin
Best Week58.0%Highest margin
Warnings & Risk Factors
Issues identified in this scenario ordered by severity
highBinary Pool Cap

Frequent Pool Cap Hits

12/12 weeks

Target: < 50% of weeks

The 40% binary pool cap was exceeded in 12 of 12 weeks (100%). IBOs routinely get reduced payouts, damaging trust and retention.

highBinary Pool Cap

Severe Pool Point Dilution

0.287

Target: > 0.80

Average PPV is 0.287, meaning IBOs only receive 29% of calculated earnings. Values below 0.80 indicate tier payouts structurally over-promise vs. the 40% pool.

highTop-Heavy Payouts

Top Tier Concentration Risk

$3,187,500/wk

Target: < 20% of revenue

124 affiliates at Royal+ tiers account for $3,187,500/week -- more than 20% of weekly revenue. This concentrates wealth at the top and may raise regulatory concerns.

mediumPayout Structure

No Individual IBO Cap Defined

The plan has no individual weekly or monthly payout cap. A single Pinnacle ELYT earns $250,000/week. Without individual caps, a small number of top earners can consume disproportionate pool share.

lowRolling Window

4-Week Rolling PV Inflates Qualifications

Orders count for 4 weeks in the rolling period. A single large order inflates PV and can cause artificial tier qualifications that disappear in week 5, creating 'tier bouncing'.

lowPlan Design

Lifetime Active Status Creates Growing Obligations

Once an IBO purchases the IBO package, they are 'active' forever. The number of active accounts only grows, never shrinks. This could inflate tier qualifications without corresponding PV growth.