In EVE, faction warfare only gives LP which is used with ISK to purchase faction gear. So it's working as intended and as it should. Why should Dust FW work differently than EVE FW, you supposed to risk what you choose to gain LP. Each race has weapons and equipment better than anything you can buy with ISK. Agreeing with who I quoted, and I do sell salvage of LP gear. Wish you could make more off it though.

I think I was not clear. In EVE one early LP by completing plexes ranging from Novice to Large and that is how one primarily earns their income within the FW zone, however one can also earn ISK by destroying the Rats that spawn on the plex and looting their wrecks providing players with small bounties as well as loot.

Moreover since FW is a PvP active area one also earns LP and ISK from killing War Targets [henceforth WT] based on the bounty system and form their loot.

Additionally players can undertake faction specific missions for LP and can loot ISK from them as well as while in system waiting for plexes to spawn belt rat for ISK and loot.

FW has numerous opportunities to earn ISK on a minor level however where ISK making in FW really comes in is during the slog from being at a lower tier up through into T 2-4 the raw influx of LP leads to the FWers ability to exchange for Faction Shipes en masse to be sold on open markets of ISK.

I believe this sort of thing can be applied to Dust 514 as well with the advent of player trading. If players were forced to sign up to one FW at a time I believe a fledgling market for unique LP goods like the dropsuits and nanite injectors, etc would be a very profitable means of allowing PC players to get the best content while sustaining a healthy and competitive FW player base.

E.G -

FW Players sign on to their chose faction and can only play for them/their allies [2/4 factions for arguments sake] and can earn LP to be used to purchase specific unique goods [skins, slight variations of weapons/modules] and sell those to PC players who may not have access to these modules due to their own PC matches or FW constraints supporting the FW system and spreading out the build up of wealth from PC.

To OP: the rewards and pricing in this game reflect the initial design principles of risk vs. reward and in isolation are fairly sound.
However through various ill thought out mechanics and choices on CCPs part (eg. district locking, asset buybacks at the end of beta, alt farming etc.) the curent isk distribution has skewed this early principle well beyond the fairness it was supposed to create.

Many people can field what they want when they want and many can't - don't listen to those who tell you you can't run proto in pubs, that is your choice alone. But match payouts are unlikely to change as you requested and I don't think they should either.

So you are left with the one truism the has been constant throughout new eden - adapt or die.

Suggestions:
1. Run a cheaper fit - if you're going 20/2 it sounds like you would do ok in adv or even basic.
2. Spend some cash - pick up a combat pack for -ú4 (or whatever it costs in your currency) that gives you 400 suits adv and proto plus 400 weapons and modules galore. That should give you enough to earn 20 million over a few weeks, buy one a month for 3 months and you'll have isk enough for the next 6 months.
3. Beg
4. Borrow
5. Steal
6. Ring in PC
7. Sell assets
8. Run in a squad with decent logis to keep you alive

Whilst I have some sympathy that you can't afford to run what some can though being in the right place at the right time, it's like what others have said you are a small business and you have to live within your means - reduce your living cost or increase your means.

And don't you ******* talk to me about skill you little *****. You don't ******* know me. 90% of the time I am placing in the top spots of the match leaderboard and this is while I am running solo (I have yet to run with a squad in this game).

Well, 'adequately compensated' is entirely a subjective concept isn't it....

What you consider adequate and what the game designers consider adequate are obviously different. You obviously consider 'enough of a payout to run proto all the time' as adequate. It appears that CCP doesn't consider enough isk to run proto all the time to be 'adequate.' It appears that they consider enough ISK to run ADV all the time to be 'adequate.'

You are just going to have to accept the fact that CCP doesn't want 24/7 proto and adjust your ISK expenditure to compensate. Either run ADV all the time (the payouts are well balanced for maintaining ADV gear without isk profit or loss) or run STD sometimes and Proto other times to keep your bank book at neutral.

(in the case of constant pub matches of course)

THEN there are other ways to earn isk outside of Pub rewards to boot.

personally I believe running ADV (as defined by running an ADV suit with ADV mods and an ADV weapons) should be profitable.

Running prototype in pubs should just be a epeen wallet wound unless you're utterly sh*t-hot. In which case you deserve to profit. But people like me will hunt you with the cheesiest death inducing weapons to make sure your profit margin is minimal.