How to read these digital products / courses numbers
A 90% gross margin is the single most important figure here, because it sets the floor on your ads: break-even ROAS is 1 divided by margin, about 1.1x for digital products / courses. With an average order around $120 and a typical CAC near $70, the question is whether the gross profit per order (90% of $120 is about $108) covers acquisition with room left for overhead and profit. Repeat rate (around 18%) is what lets digital products / courses brands spend above first-order break-even and still win.
Frequently asked questions
What is a good profit margin for digital products / courses brands?+
Gross margins for digital products / courses typically run about 80% to 95%, around 90% at the median, before the full cost stack (shipping, fees, returns). Net margins land near 35%. These vary widely by price point and stage; treat them as directional.
What ROAS do digital products / courses brands need?+
Break-even ROAS is roughly 1 divided by your gross margin. At a 90% margin that is about 1.1x, so any campaign reporting below that loses money before overhead. Your target sits above it. Work out your exact number in the Target ROAS calculator.
What is a typical CAC and AOV for digital products / courses?+
Average order value clusters around $120 (roughly $50 to $300), and customer acquisition cost around $70. What matters is the gap between them after margin, not either number alone.
Drop in one digital products / courses product and get the exact ROAS and ad budget per sale it needs to profit.