MLM Math (Part 2)

I have been discussing the plausibility of the program with several people and they have stated that my previous post was ignorant (using the term properly and no offense taken) since I did not understand the math. I may not have explained it clearly enough, but I have done a spreadsheet that shows that under the best circumstance, there is a $1.9M shortfall for the month of July 2007

More commissions and bonuses were paid out than income sources could cover.

Item	Income	Expense
106,000 RTA Sites Monthly Fee	$ 5,294,700
Training and Marketing Sales	$ 700,000
Travel Commission Earned	$ 1,700,000
Non Power Team REP Commission		$ 489,522
Power Team REP Commission		$ 6,213,799
1642 Leadership Bonus ($1000 ea)		$ 1,642,000
26 Dream Bonus ($10,000 ea)		$ 260,000
RTA Travel Commissions		$ 1,006,513
TOTAL	$ 7,694,700	$ 9,611,834
OVER/UNDER	$ (1,917,134)
Source: http://www.ytb.com/downloads/Rep_Earnings.htm
Source: http://www.ytb.com/downloads/RTA_Earnings.htm
Source: http://sec.edgar-online.com/2007/05/03/0001144204-07-022623/Section36.asp
NOTES:
There is a $3.6M deficit for the month.
From YTB SEC filings, there are no other appreciable income sources.
Therefore to break even with the expenses, travel commissions would
need to equal $3.6M for the month. $3.6M equates to $36M in sales.
Assuming a 10% across the board commission. If you assume 15%
the total sales would be $24M.
Assume the expenses met the income, the travel commission received
was $3.6M and 60% of that was paid to the RTAs, the RTA share
should be $2.1M not $1M
But assume $1M is correct and it represents 60% of commissions
received, that makes the commissions received $1.7M
When you plug in $1.7M for commissions, there is still a $1.9M deficit
New signups are not accounted for. However, monthly fees are waived for
RTAs that have 6 downline people. I assume the two offset each other based
on the number of emails from RTAs claiming they do not pay the monthly fee.