How should I price my challenges?
Quick answer
Price challenges from the costs up: expected payouts per sale, payment fees, affiliate commission, platform cost and overheads, plus a margin. Then check the price against competing firms for the same account size and rules. A price that only works if nearly everyone fails is too low.
Detailed answer
A pricing method:
- Pick account sizes and rules for each.
- Estimate payout cost per sale from pass rate, share reaching payout, average profit and split.
- Add variable costs: payment fees, commission, KYC per payout, platform cost per account.
- Add a share of fixed costs.
- Add your margin and compare with the market.
Larger accounts usually cost more because payouts scale with balance. Platform cost does not have to: on PropExecutor every trading account uses one credit whatever its starting balance, so a $200,000 evaluation costs you the same platform credit as a $5,000 one. That leaves price differences between sizes to reflect payout risk rather than platform fees.
Worked example
For a $50,000 challenge: suppose expected payout cost per sale is $90, payment fees $15, commission $25, platform credit $2 and a share of fixed costs $20. Costs total $152, so a price of $250 leaves about $98 of margin per sale before tax. The numbers are illustrative; the method is what matters.
PropExecutor team · Updated
Related questions
- Costs and budgetHow do I calculate the break-even point for a prop firm?
- How do I model prop firm revenue for the first year?
- Costs and budgetHow many challenge sales do I need to cover my monthly costs?
- How do account sizes affect prop firm economics?
- What is a healthy pass rate for a prop firm challenge?
All 27 questions in Business model and economics · Every category