What is up everybody? Fred Lam here and welcome to our daily huddle episode number 28.

First of all some of you guys are now celebrating TGIF. Obviously thank God it’s Friday but again like I always tell you guys that as an entrepreneur there’s no such things as Fridays or weekends. It’s very important for you that you still need to absolutely hustle during the weekend in order for you to be ahead and basically escape the rat race and give you the opportunity to achieve the financial success that you’ve always dreamt of. Why am I talking about hustling? Well, take a look at this. I actually had a secret Santa gift exchange in the office earlier this week and my assistant actually got me as her secret Santa and she actually got me this. I absolutely love this gift. It’s just a quick box that says hustle and I can even turn on the light and it just resonates with me right away. I also got this. She actually gave me this. “I’m kind of a big deal” and then it says “World’s okayest boss” which I find it very, very cute.

Anyway, for those of you again, I know that soon, in 10 days it’s going to be Christmas so I hope that you guys actually got your Christmas gifts for your loved ones and for your families. Christmas and Christmas are the only days that I will actually ask you to not work. Spend time with your family, enjoy the holiday but afterwards you have to get ready to crush it hard in 2018 as we’re preparing for the New Year. For those who are joining us for the first time, every single day from Monday to Friday I am hosting our daily huddle where I am extending a habit that I have inside my office to all of you guys. During our daily huddle, I am going to answer five burning questions that you have regarding your business or maybe you want to start a business or you have an idea and you want to basically get my input or advice on how you should be moving forward. If you have a question that you want to get featured in our daily huddle, all you have to do is simply go to and submit the information right in there.

I know that at 6PM Pacific, 9PM Eastern on Friday it’s a pretty dead time to be doing a live video because obviously some of you guys are maybe getting drunk at a bar, maybe having some nice dinner with the family or maybe watching your favorite TV show.  Anyway regardless of how many people we are having now, I’m still going to host our daily huddle so that you guys can watch the replay of this. With that let’s dive right in into our five questions that have been submitted to me and I’m going to feature them today.

[0:03:52] Question 1: I've not had the success w/ some of the "proven" golden products and it's challenged my confidence in my FB Ad targeting. The low conversions have me going back/forth on refining audiences/interests. I'm losing some enthusiasm b/c if they are listed as BEST SELLERS on Ali Express somebody has to be selling them right?

First one is by Lamont Land. Lamont said,

Hi Fred
Thanks for all of the content you’ve developed. I’ve been working through ZU since August & have had many learnings with some modest successes. I still remain determined to figure out this ecomm biz “puzzle”.

My Question: I’ve not had the success w/ some of the “proven” golden products and it’s challenged my confidence in my FB Ad targeting. The low conversions have me going back/forth on refining audiences/interests. I’m losing some enthusiasm b/c if they are listed as BEST SELLERS on Ali Express somebody has to be selling them right?

Lack of the purchases leads me to continuously test these products & change interest targeting w/ very modest results. I know that you say LET THE NUMBERS TELL THE STORY. I follow the levels you’ve taught (CPA, CPC link, CTR link, etc), but still don’t feel like I’m hitting the targeting right. How do YOU determine when it’s the PRODUCT that’s not golden, or the level of precision in TARGETING? thx

So you have two questions. First part is basically, you have been testing a lot of products that are showing on Aliexpress as best seller items. I’m pretty sure a lot of you are actually doing that at the same time. If that’s you put in a ME right into the comment box on Facebook and on YouTube so I just know. For anyone who is going to put a ME, the truth is even though it is showing as a best seller on Aliexpress; it doesn’t mean that you are going to actually find that golden product. There are two reasons why. The first reason is as a drop shipper even for me when I drop ship products I never make a comment or I never basically put a review on that product on showing if that product is going to sell or not.  Also, when it talks about volume on a product, a lot of people don’t order one by one. They do bulk CSV and send the CSV file to defender and have it all fulfilled and it’s really marking as one product. So, when it is showing as best seller in Aliexpress, it’s really the users who are on Aliexpress, it’s not basically people who are buying off of a store and then having it showing right into the Aliexpress. You need to basically make that clear.

Number two is you are right. The targeting is superbly important but not just the targeting it’s actually the ad creative itself. Based on your question, you tried a lot of targeting and you asked if how to determine the product if it’s not a golden product. Well, I determine the product is not a golden product if I actually have something called the 3×3 ad method and you guys have it inside the Zero Up ad I even have a video in my YouTube channel called the 3X3 Facebook ad method. What it does is that if I’m advertising 3 different ad creative going to the same targeting, I’m basically trying to see if it is the ad problem or is it the product problem. Ultimately at the end of the day, a slight change in the ad copy or the actual ad of the Facebook post makes a drastic difference in terms of your conversion rate and if it’s going to make you money or not. That’s why I’ve invented the 3X3 method. You definitely have to take a look at it and implement it to distinguish right away if it is the product problem, targeting problem or the ad problem. There are only three things if you strip down to the core; it’s the ad, the product or the targeting itself.

When it comes to targeting, it’s very hard to say right away that “Hey, this targeting is absolutely going to work.” That’s not the real deal because the targeting goes hand in hand with the ad copy and going with the actual product itself. When it comes for myself when I actually find a new product that I want to test out, I immediately test out two different targeting. Number one is a flex targeting. So I basically find two large groups of audiences in millions and narrow it down and flex it down to a smaller one to basically find a more direct audience that will most likely be interested in my product.

The other way that I will actually do it and this is the second method that I always use is precise targeting. I look for magazines, public figures, popular products, trending products within your niche. You have to look for a very specific interest targeting so it’s not something broad. Let’s say for example if I sell a watch that is a premium watch I’m not going to actually just go after watches or watch accessories. I’ll go after maybe like Rolex, Breitling or Decker and to specific brands because those audiences are going to be a lot smaller. That’s what you have to do. And you still need to let the data tell you if it’s going to sell or not in order for you to actually find out if it’s a targeting problem or an ad problem. If it’s a targeting problem use my 3X3 method and you’ll get data right away. And by using my method you will know if it’s the product, add or the actual targeting problem. Again, go to my YouTube channel simply search for Fred Lam 3X3 Facebook ad and you will actually see it and it just tells you a lot. I actually use that and I crafted it in away where it’s easily can be replicated on what I do with the 3X3 method to really distinguish the three cores that’s going to make you money or not. I hope that helped you out Lamont.

[0:10:15] Question 2: What happens with if customer ask for refund after they receive the product and not satified with it how would i fix the issue?

Moving on to the second question and it’s byTauraki Terejim. The question is,

Hi Fred my question is, what happens with if customer ask for refund after they receive the product and not satified with it how would i fix the issue? thankx in advance

Here’s the real deal, we’re talking about dealing of refunds for drop shipping and I have a very, very specific procedure in place. First of all, I would need to actually distinguish and identify what my cost of goods is going to be. if my cost of goods including shipping is less than $10 I am not going to waste time, effort or basically waste my customer’s time to have them ship me back the product and basically refund them. What I will simply do is refund them and say, “Keep the product as for thank you for trying it out. We hope that you come back to check our other products. Maybe it’s just this product that didn’t work out for you.” So, there’s the nice side. The not nice side which Grant Cardone was having a debate with me during my interview with him in Ask the Pro when I was at his office was you can simply just refund him and ban him to visit your store or buy from your store for life. It’s really up to you on how you handle your business. I go with the easier, nice guy where I’ll just refund him. You’re not going to get a lot of request anyway. I’m hoping to build that person to be a long-term customer because I have countless customers where I say, “You know what just keep the product, have it. I will just give it to you as a gift on behalf of the store and we just hope that you come back to check our other products.” People absolutely love it. It worked for me really, really well but again, it maybe because of the demographic and the niche that I am in at the same. You have to determine on what you want to do.


When the cost of goods is a little bit expensive, let’s say your cost of goods including shipping is around $20. You have the ability to resell that product then what you have to do is actually implement something called the (RMA) or Return Merchandise Authorization form. You basically have the customer ship back the product to you and they have to fill out that form and you have to receive that product in order for you to refund them the money. Now you’re selling a higher ticket item, it depends if you’re having shipping or not. If you offer free shipping then obviously you have to refund 100% of the money but if you charge shipping so let’s say you’re selling a product for $50 and you charge $5 shipping. What I do is that I only refund the actual product amount; I do not refund the shipping. Let’s be realistic, it’s a cost that have to bear and customers will have to understand that. I have to pay for the shipping to a courier to actually have it shipped out so I would refund the money less the shipping if I charge the customer’s shipping. That’s what I would do and I hope that really helped you out.

[0:13:39] Question 3: When writing my Facebook ad should I include lots of emojis plus arrows pointing at the link I put in the description. I love your daily huddle I watch them around 2 am uk and wake up for work the same day also I wanted to know what your training programme is called and do you have offers? Thank you in advance.

Moving forward to the third question of the day. It’s by Mohammed Rafael Bing. Mohammed’s question is

When writing my Facebook ad should I include lots of emojis plus arrows pointing at the link I put in the description. I love your daily huddle I watch them around 2 am uk and wake up for work the same day also I wanted to know what your training programme is called and do you have offers? Thank you in advance.

I absolutely love the dedication. Put in a 1 into the comment box on Facebook and on YouTube and if you are watching a replay tell me right below in the comment on YouTube if you guys always either wake up and looking forward for our daily huddle to start your day. I’ve been getting a lot of feedback in my inbox saying that they love the daily huddle and they start their day by watching and learning from it.

Anyway, to answer your question emojis are proven to increase conversion but at the same time it depends on what market you are going after. I have an e-commerce store that I use emoji and which doesn’t use emoji and I would have to tell the one which doesn’t have emoji out beats the once that have emoji in my ad. I think the reason why is because of demographics. One of my stores really goes after the baby boomers, 45 plus female and they are not really into emojis a lot so it doesn’t resonate with them and they feel that having emojis it is not as serious and professional. That’s why it doesn’t work out for that niche and for that demographic.

In general, emoji does work well but again it’s not a guaranteed thing. When it comes to emoji, you do not have to overplay your emoji. You do not need to have too much emojis in your ad because if you have too much of them it doesn’t look professional. You have to strategically have emojis in your ads. You do not have to always have them anywhere. There is something that I always do which works well; it is using arrow emojis to point to the link because it just pops out the link inside the post text. Again, it really depends in your niche and demographics. You need to do some testing. I have done a lot of testing in my stores; some works really well with emojis, some just don’t work with emojis at all. If you are using emojis do not overplay it.

Your last question is do I have a program? I do have a program called Zero Up. You guys can look for it in Google and you will find a lot of information about it. I’m not pitching you guys or anything. Mohammed asked so I just shared the details.

[0:16:55] Question 4: 1) Is it really necessary to provide these details, I feel that I'm giving away too much personal information 2) how long does it usually takes to be verified once you submitted the docs.

Next question is by Louie Perez. Louie said,

Hello Fred,
In need of some advice, please. So after a couple of weeks of setting up my store, after binge watching your YT videos, I made my first sale last night, 9 orders in one day to be exact. While I got super excited when I saw the orders coming, I’m having issues fulfilling them. i’m doing dropshipping and ordering from Aliexpress, I was able to complete the first 2 orders, but for the succeeding one, it’s saying that my account needs to be verified. It’s asked for my IDs and bank statement.

So my question is 1) Is it really necessary to provide these details, I feel that I’m giving away too much personal information

Aliexpress is a public trading company. They need to protect themselves and also their vendors to make sure that there is no one fraud. I’m currently certain there are a lot of people who are trying to gain the system, fraud it, use basically stolen or fake credit cards to scam Aliexpress so that’s why they sometimes ask for this information because it’s really rare. You didn’t order anything and suddenly in one day you order 9 products and ship those to nine different addresses. It will trigger this and you just have to basically get this fulfilled. You don’t have to worry because Aliexpress is a public trading company. If they for some reason use your information for something else which is not related to Aliexpress or basically [0:19:21] your transaction you can basically start some legal action or something. Aliexpress is smart enough not to do all these because obviously, they’re screwing themselves over. So, it’s fine.

2) how long does it usually takes to be verified once you submitted the docs.
Many thanks in advance!! 🙂

It really varies. I have people and members who got verified in 24 hours, some people took a week. I think it really depends on the work load that Aliexpress has. So for now, what you have to do is get yourself verified and if you have already sales coming in just get a new Aliexpress account, get a credit card and just fulfil the existing one right now. Once you other account got fulfilled then just use back that old account. That’s what I would suggest you to do.

Question 5: Do I pay Sales taxes (similar to VAT or IVA in Portugal) in the US or do I pay them in my country? sorry for the boring subject but I want to avoid issues with IRS.

To our last question of the day, it’s by Leandro Miranda. Leandro said,

Hi Fred. First of all my first name pronounces Lee andro (hope that helps you with your names issue ;). I have a bit of question regardin sales taxes. So, I know that we have different taxes in different states but… I’m from Portugal and that’s where I’m going to be selling from. Do I pay Sales taxes (similar to VAT or IVA in Portugal) in the US or do I pay them in my country? sorry for the boring subject but I want to avoid issues with IRS. Thanks for the answer and for you support (in all different forms) you give to us, newbies. Take care and Go! Go! Go! 😉

First of all a legal disclaimer and this is important. I am not an accountant. I’m not a legal adviser and I am not a tax lawyer. What I’m basically sharing with you is based on my experience. You’re all the way from Portugal; I have never been there so I don’t know how their regulations are but I can speak from my simple experience. I’m from Canada and selling to the United States too. Since that I am in Canada and selling to the US, I don’t need to do any sales tax and pay IRS the sales tax because technically I’m an international entity. Technically, I don’t think you need to actually charge any sales tax. However, when it comes to IVA you have to check with your local attorney or consultant to basically figure that out. I seriously don’t know in Portugal because I’m not sure if you guys have a free trade treaty with US and all those other stuff. My assumption is basically you don’t but I will actually encourage you to just spend like $100 locally to find a tax consultant and figure that out. It’s definitely worth it



Other than that, that is really it for our session today. I’m just looking at the comments right now on YouTube and Facebook. Love it, love it, love it. Vanessa said, “Zero Up is the best product out there and it works.” Rightstill said that Zero Up is the best and it works. Thank you for your support, guys. Those are some amazing words. Thank you, Thank you.

Anyway, tomorrow is Saturday and we’re going to the weekend. I’m not coming on for a daily huddle during weekend so we are going back on Monday. However it doesn’t mean that you guys can be lazy and not work on your business. Weekends are the best time for you to stay focus and work on your business. Don’t get distracted by the latest Netflix TV show; don’t get distracted by having a beer with friend and just talk about cars, women or whatever. Don’t go window shopping if you are a female, you’re just basically wasting time. What you want to do is to allocate some time and focus on hustling and you will reap the rewards when everything is all set and do whatever you want.

That’s all you I have for today’s daily huddle. Tell me what you think about today’s session right into the comment section in Facebook and in YouTube. Seriously guys, I will love it. This is something I’m trying to accomplish. I need your help. I want to get 100,000 followers on Facebook and 100,000 subscribers on YouTube. I need you help to do this. Make sure you like my Facebook page, subscribe to my YouTube channel and take a friend whom you know can benefit from our daily huddle and my trainings. Right now I’m just wrapping up 2017 to do our daily huddle but once we hit 2018 I have tons of training line up for you guys which I’m going to release in my YouTube channel. I’m going to do something that’s is going to be called insane like crazy but I’m going to do this just to really help you succeed and inspire you guys and at the end of the day build a community of like-minded individuals, people who are hungry and really want to become entrepreneurs. I’m going to do my best to help you guys on that. Again, comment right below; tell me what you guys think. Remember to subscribe to my YouTube channel, like my Facebook page. I need your help to get 100,000 subscribers on both Facebook and YouTube so take a friend, tell about it, share this and do whatever you can. Other than that I look forward on seeing you guys on Monday. Have an enjoyable weekend and keep hustling. Bye now.