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There's a hierarchy for Demons:
Weak Demons (though weak's a relative term, we're talking up to CR 8 or so): Hurt by either Cold Iron or Good weapons.
Middling Demons: Hurt by Good weapons alone.
Powerful Demons (the Balor and Marlith for example): Hurt only by weapons that are both Cold Iron and Good.
So it's good against both weaker demons and greater ones. Out of the 12 in the Core Book, Cold Iron is efficacious against 8.
So it's effective against the majority of them...the ones that say it works on them.