What is the lifetime value of a prop firm customer?
Quick answer
Lifetime value is the total revenue a trader brings over their relationship with the firm, minus the payouts and costs they cause. Many traders buy several challenges, resets and add-ons over time, so lifetime value is usually higher than a single fee. Payouts to successful traders reduce it.
Detailed answer
To estimate it:
- Average purchases per trader over 6 or 12 months.
- Average order value including add-ons.
- Minus payouts attributable to that trader group.
- Minus variable costs such as payment fees and commissions.
Retention drives lifetime value. Traders return when rules feel fair, payouts arrive on time, support is quick and the trading experience is good. Repeat customers are cheaper than new ones because there is no acquisition cost.
Track it per trader record. On PropExecutor a trader record can hold several trading accounts over time, so you can count each trader's accounts and see their history in one place.
Worked example
A trader buys a $150 challenge, a $100 reset and later a $250 challenge, for $500 of revenue over a year. If their payouts total $200 and variable costs $60, their lifetime contribution is $240. That figure, not the first sale, tells you how much you can spend to acquire a trader like them.
Improving it
Fair rules, reset offers and good support raise repeat purchases more than discounts do.
PropExecutor team · Updated
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