A “90% margin” claim usually quotes gross margin — revenue minus direct delivery cost — before software, ads, insurance, taxes, and your time. We report net margins after all operating expenses, which is why our database average of roughly 60–70% looks less flashy but survives contact with reality.
Benchmarks cluster by model. High-leverage digital services (AI agencies, SEO consultancies, bookkeeping, coaching) run 75–90% net because fulfillment is expertise plus software. Home services (detailing, pressure washing) run 50–70% after equipment, chemicals, fuel, and insurance. Product brands run 20–40% after cost of goods, shipping, and ad spend.
To model your own numbers, open the Profit Calculator: enter average transaction value, expected clients per month, monthly overhead, and fulfillment cost per client. You instantly get gross revenue, net profit, margin percentage, annual run-rate, and break-even timing.
Rule of thumb: if net margin is above 60% and time to first dollar is under 30 days, you have a fast-validation idea. Below 30% margin demands volume or premium pricing to justify the effort — plan accordingly.