Turning a Money-Losing Business into a Profit Machine
The Problem: High Revenue, No Profit
A digital product business was consistently selling a $15 course with a $5 delivery cost. On the surface, revenue looked great—but every sale was creating a deeper loss.
Here’s what was actually happening:
The business spent $30 on ads to acquire one customer
Each customer only brought in $15 in revenue
With $5 in delivery costs, they were losing $20 per customer
More sales just meant more losses.
This is a pattern we’ve seen with many digital product businesses that focus on front-end sales without building in profit strategy.
The Fix: Add a $100 Upsell to Flip the Profit Game
Instead of scaling a losing offer, a premium $100 upsell was introduced—one that roughly 1 in 5 customers chose after buying the $15 course.
What changed:
The upsell added an average of $20 per customer (1 in 5 conversion rate)
That extra revenue offset the $30 CAC
The business moved from losing $20 per sale to breaking even on the first purchase
Profit came in immediately from repeat purchases and back-end offers
The Results: Profitable From Day 1
No waiting to recover ad spend—break-even happened immediately
Increased lifetime value meant higher, smarter ad budgets
Cashflow shifted from negative to positive, making growth sustainable
Key Takeaway
Selling more doesn’t fix weak margins. The right upsell at the right time can completely change your profit dynamics—especially in digital product businesses where delivery costs are low and scalability is high.
