I remember it like yesterday.
There I was, in my fuzzy slippers and velveteen robe.
The fan rotated slowly overhead as I petted my poodle Sebastian while sipping a Gin and Tonic. I had one of those long Audrey-Hepburn-type cigarette holders clasped lazily betwixt my middle and index fingers as I sat in the lofty Los Angeles hotel room. The glitter of street lights played against the black background of the glass that separated me from the hustle-and-bustle of the boulevard below.
Just kidding. I don’t even own a robe, much less a poodle.
Had you going for a second though, didn’t I?
And just like that Soul II Soul song from back in the day, let’s get back to life, back to reality.
So the first time I saw Fred Lam was actually on Grant Cardone’s show, one of my favorites for several reasons.
He’s originally from Hong Kong and moved to Vancouver at a young age.
From there his research online on how to make money led him to the world of e-commerce, which to the uninitiated, is basically the concept of using the internet to hustle physical products to people all over the world.
Nine times out of ten, this is done using paid traffic in the form of paid ads on Google or Facebook to reach out and smack people right in the wallets.
Fred Lam rose from the ranks of anonymity doing exactly that, specifically by utilizing the drop-shipping model.
To put it simply, drop-shipping allows you to ship directly from the manufacturers overseas to your customers. Just imagine teddy bears jumping out of helicopters straight into people’s mailboxes. That’s basically what you’re doing.
And I’m sure you can imagine that this completely slashes away the need for a big investment on inventory and managing it.
And that means no more keeping track of stock.
As far as my own journey through the goblin-infested hellscape of eCommerce, it was hard to stay afloat over the long term.
I’ve found that many of the e-com stores that I launched didn’t stay successful over the long-term though because of ever-increasing ad costs and some products losing the “cool” factor.
That means lights out at one point in time or another.
One thing’s for sure, however.
Ecommerce taught me a lot about Facebook ads.
And without a doubt, you can definitely still make money with dropshipping in July 2019. I just personally feel that the market started becoming really saturated, which means that the cost per click was skyrocketing while the price of products started going down due to ever-increasing hordes of people flocking to eCom and running Facebook ads.
Like seagulls on french fries.
Personally, I’m a sucker for building my online business centered around digital billboards that utilize free traffic to firebomb local businesses with hundreds of leads, causing them to take out their wallets and hurl wads of cash at you.
So what’s the best place to start?
Running this type of online business can be hard or even impossible without a mentor.
If you’re curious and want to know more, check out this article about lead generation for small businesses.
There’s so much money to be made, and the competition is virtually non-existent in so many high-dollar markets.
Hey, don’t get me wrong though. I know some of you out there may be super intrigued by the concept of selling physical products straight to the consumer on platforms like Facebook and Instagram.
I think it’s mostly due to the fact that so many people are talking about it, it kind of gives you a little case of the FOMO’s like it’s some sort of a craze right now.
So let’s take a little look at Fred’s course, and also examine with a microscope the pros and cons of the E-Commerce biz, as well as how it compares to other types of online business that you see out there these days.
Who’s Fred Lam?
And perhaps more interestingly, how did he find out about the idea of e-commerce?
Fred originally came from Hong Kong, and he moved to Vancouver at a young age.
He was one of three kids in a poor household, and he lived a life of scarcity in his childhood.
His dad worked a dead-end job just trying to pay the bills, and his mom fought like hell just to make ends meet.
A young man, he washed dishes in a restaurant to pay the bills.
It was there, in that steamy dish pit filled with the clamor of crashing dishes and pressurized water, that he started thinking.
He saw the possibilities out there for something greater in the power of the internet, so he started looking online for answers.
Back in the early 2000s, Google AdWords was just coming out and people began figuring out how to make money with it.
Back then, clicks literally cost pennies. Today, some clicks can cost as much as ten or twenty dollars (or more in some cases).
By the time Facebook ads had come out, he’d already reportedly spent millions on Google ads.
In 2008, he was first introduced to the drop-shipping model. His specialty? Selling physical products online using paid ads.
Here are the steps you need to take to follow in his footsteps.
- First, get an eCom website up (Shopify is pretty popular these days)
- Then, you need to find products to sell (sell directly from manufacturers)
- Invest in traffic – Facebook ads, Youtube, Adwords, Instagram, Bing
- Make sales, even if you break even or money. Fred looks at it as building a relationship with your clients, because you can sell more stuff to them down the line.
- Once someone purchases an item, he’ll offer them a coupon with an expiration date that encourages customers to throw more money at their computer screens.
So What Do You Get With Zero UP?
Fred Lam is definitely a hyper-smart dude.
I’ve brought in some money with eCom throughout my years of experimentation, and the thing that I especially liked about Fred Lam is some of the automation that his software sports.
It’s easy to dismiss Fred due to his young age, but he’s actually just way ahead of his time.
You have to remember that he’s been running paid ads since the early 2000s.
At this point, he’s a true professional. That’s how I look at it.
Today, however, Fred solely focuses on the use of Facebook ads to sell his products.
Between Google and Facebook, you’ll find 99% of the people in the world lurking around there at some point.
That means everybody wants a piece of the pie.
Some new heavyweights in the ring are Youtube and Instagram, and some folks are getting good results there as well.
You can’t go wrong with buying Fred’s Zero Up.
He’s an excellent teacher and better yet, he’s basically the Rick Flair of E-Commerce.
That means he actually produces millions in sales with his own e-commerce business, which means he ain’t selling you no bull.
So What Are The Pros And Cons Of An E-Commerce Drop-Shipping Business?
First, let’s talk about the happy stuff.
- You can get a product store up and running quickly and cheaply using Shopify
- You can model after other people’s success with products, store look, and email campaign
- There’s very little need to talk to people (if you’re the introvert type, that is)
- No need to make big investments in inventory (or even keep inventory if you’re using the drop-shipping business model)
- Alibaba makes it super easy to find manufacturers overseas
- Anyone can run this business with a laptop and the internet
- Drop-shipping allows you to test the market with little or no investment at all other than cash for FB ads
- Many product niches to choose from (the more the merrier right?)
And now for the not-so-happy stuff.
- Profit margins can drop off the edge of a cliff because of expensive ad costs, leaving you with a painful 10-20% profit margin
- Scaling up can get difficult due to dealing with returns, customer complaints, and chargebacks
- You can run into issues with foreign manufacturers
- It’s almost impossible to get a feel of quality control because you’re having an overseas manufacturer ship products directly to the customer
- You can suffer from a lack of proper branding and packaging because products are shipped by manufacturer
- Low profit margins due to not buying inventory at bulk (which obviously reduces the cost of goods)
- the market keeps getting more and more saturated as time goes on
Let’s get down to the nitty-gritty and talk about this little bitty.
I’ve made some decent money with drop shipping, but ultimately I had to deal with the issue of ongoing failing products that simply didn’t produce the profit margin needed for those projects to be worth my time.
And due to the fact that you still have to manage the FB ads while fulfilling customer orders, it wasn’t as scalable as I had hoped.
Fred Lam is still a laser-beam-deflecting master ninja on steroids when it comes to teaching, though.
He actually put a video out on Youtube July 1st, 2019 that talks specifically about how to deal with my #1 issue with eCommerce, which is returns.
And if you’re still living that 9 to 5 life, making money with e-commerce is easily ten times better than working for somebody else.
The online support you receive whenever running into issues is also worth its weight in gold.
If you’re trying to get into the e-commerce game for the first time, I highly recommend investing in a mentor like Fred Lam.
As far as my own choices, I prefer a much more controllable stream of income.
Over the years, I’ve seen a much better return on the time I’ve invested in building “digital billboards” that generate leads with free organic traffic.
All the cool kids these days are learning how to generate free traffic on the internet.
It allows you to create passive income stream that’s nearly indestructible & with the biggest profit margins because you’re not paying for any clicks.
So it allows me to scale faster, work with less clients & make more money.
You def gotta know what you’re doing though, takes some time to learn, not a get rich quick scheme.
But a real skill that you can use to cut your own paychecks on the internet for as long as there’s internet around.
This coaching program is the one that taught me how to generate leads organically and sell them to small business owners, is what took me from beginner level to a multiple 6 figure online megastar in no time.
Check out this tree site that’s been making me a cool $2,000 a month since I made it years ago site for example:
I probably spent a little less than a full day building it and ranking it.
And to this day, it still produces hundreds of leads every month, ringing my client’s phone off the hook and keeping his team very busy with work constantly.
And the best part?
And I haven’t even touched it in years.
Once you get these things up to the top of Google, you’re basically done other than checking in every six months or so to see how things are holding up.
Honestly though, I don’t even do that. I just have a virtual assistant check the call volume for next to nothing and get on with my life.
I focus on scaling to the moon faster than you can eat one of those Great Value ice cream bars.
(Have you ever seen how long it takes one of those things to melt?)
here’s a photo of my mentor and I hanging out with some of the other group members at our most recent live event in Vegas this past June.
We also have an amazing Facebook group with over 4,200 people that helps one another out any time of the day, any day of the dang week.
Not to mention that we have weekly coaching calls so we can get our questions answered directly from our mentor.
Honestly, of all the courses I’ve tried, this one by far has not only made me the most money, but it’s also made me some of the best lifelong friends I’ve ever had.
(I even live with one of them, and we’re crushing it in our business right now.)
See, you have options in our group. If you’re a lone wolf, then that’s totally cool.
If you’re a team player and want to have other professionals working together with you on a project, then you can definitely do that as well.
Oh, and wanna outsource some of the process?
Well, not only does the group have a super cool in-house phone tracking system so you can calculate exactly how much value you bring your clients, but we also have access to a full lineup of outsourcing services that are done in-house which means you know it’s done correctly.
Just check out one of the many success stories from our group, this one from July 1st 2019:
But hey. You don’t have to take my word for it.
Take that finger and slam the link to learn about how lead generation for small businesses can totally transform the way you see life.
You won’t regret it.
As always, thanks for reading.
I’m off to build more assets!