I first saw Fred Lam on Grant Cardone’s interview.
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 is selling physical products online using Paid ads, specifically the drop shipping model which allows you to ship directly from the manufacturers overseas to your customers which cuts out the need for big investment on inventory & managing it.
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 selling due to its viral / fad nature which eventually fizzles out.
I will say though going into e-com taught me a lot about Facebook ads. You can definitely make money with dropshipping still in 2018 but I just felt that it started becoming really saturating and the cost per click was going up while price of products started going down due to ever increasing ppl flocking to eCom & FB ads.
I’m a sucker for building my online business with free traffic though, best place to start? Doing lead generation for small businesses. So much money to be made and the competition is virtually non existent in so many markets.
I know many ppl are interested in selling physical products tho on FB, so many people are talking about it, gives you little bit of FOMO like its some sort of a craze right now.
We’ll take a look at Fred’s course. Pros & Cons of E-Commerce biz and how it stacks to other online businesses out there.
Contents
Who’s Fred Lam?
How did Fred Lam find out e-commerce?
He’s originally from Hong Kong and moved to Vancouver at a young age.
Dad’s in Hong Kong working, and he was one out of 3 kids and growing up didn’t have much money growing up, his mom was struggling to make ends meet so he started looking online for answers.
Back in early 2000’s Google adwords was coming out and people began money with it with clicks that were pennies
By the time Facebook ads came out he had already spent like “millions” on Google ads.
In 2008, he was introduced to the drop shipping model.
His specialty? Selling physical products online using paid ads.
Here’s the steps.
- First get an eCom website up (shopify)
- Need products to sell (drop shipping – sell directly from manufacturers, have them ship directly to customer, no need for big upfront investment for inventory)
- Get Traffic – Facebook ads, Youtube, Adwords, Bing
- Make sales, even if you break even or make little less than the ad cost, Fred looks at it as building a relationship. Sell more stuff to them down the line.
- Once someone purchases a item, he’ll offer them a coupon with expiration date that encourages customers to buy more things.
Here’s What You Get With Zero UP
My Thoughts
Fred Lam is a very bright young man, I’ve made some money with eCom, I like some of the automation that he has came up with with his software.
To me Fred is a pretty way ahead of his time, people are too quick to dismiss someone based on age.
He’s been running paid ads since early 2000’s, at this point he is a true professional, that’s how you gotta look at it.
Fred solely focuses on Facebook ads.
It is the biggest platform right now, by far.
Even though Youtube & Instagram is catching some steam.
You can’t go wrong with buying Fred’s Zero Up, he is an excellent teacher and even more legit E-Commerce. He actually produces millions in sales with e-commerce so its nice to have a coach that actually walks the talk.
Pros & Cons of E-Commerce Drop Shipping Business
Pros
- Get a product store up and running quickly & cheaply using Shopify
- You can model after other people’s successful products, store look, email campaign
- No need to talk to people (if you’re that introvert type)
- No need to carry inventory or do big investments in inventory if you’re doing the drop ship model
- Alibaba made it super easy to find manufacturers overseas
- Anyone can run this business with a laptop and internet
- Drop shipping allows you to test the market with not that much investment at all, maybe few bucks for FB ads
- Many product niches to choose from, more than merrier right?
Cons
- sometimes quite low profit margins because of expensive ad costs, 10-20% profit margin
- dealing with returns, customer complaints, chargebacks it can get quite hectic when you begin scaling up
- issues with foreign manufacturer
- low level of quality control because you’re having a overseas manufacturer ship products directly to customer
- lack of proper branding & packaging because products are shipped by manufacturer
- less profit margins because you’re not buying inventory at bulk which obviously reduces cost per goods sold
- getting more and more saturated as time goes on
Conclusion
I’ve made some money with drop shipping but ultimately I had to deal with ongoing failing products that simply didn’t produce the profit margin needed for those projects to be worth my time.
Because you still had to manage the FB ads and fulfill customer orders, it wasn’t as scalable as I had hoped.
Fred Lam is a great coach however if you’re still working the 9 to 5, making money with e-commerce is 10x better than working for somebody else.
And having the on-going support whenever you run into issues is priceless.
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.
For myself, I am seeing higher return on my time invested with building lead generation properties that generate leads with free traffic.
IMO being able to generate free traffic is the most elite skill 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 novice to multiple 6 figure online entrepreneur.
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