If you are interested in online business, you might have heard of Chad Friedman who is pitching the dropshipping course Next Level eCom.
But you might not be so sure whether he’s trustworthy. After all, there are many fake gurus out there trying to pocket your hard earned money.
So, in order to help you make a more informed decision, I’ve conducted some research on this guy in depth.
At the end of this article, I’ll also tell you a much better alternative that can really help you generate six-figure passive income.
Below is what I’ll cover in the review of Chad Friedman.
Who is Chad Friedman?
Chad Friedman is a self-made entrepreneur. It is said that at only 17, he started doing dropshipping and made a fortune in a couple of months. This led him to create the course Next Level eCom.
He has more than 17k followers on Instagram. But he doesn’t have a YouTube channel and Next Level eCom has a Facebook page with only 14 followers.
What to expect in Next Level eCom?
At the first glance, it seems that Clad has covered everything about dropshipping in Next Level eCom.
However, the length of the videos is a bit short, with some less than a minute. It seems the YouTube videos featuring dropshipping are more comprehensive.
And in most cases, Chad usually names a part as a module.
What’s inside Next Level eCom?
The programme contains 9 sections, each with its own videos. There is a total of 1 hour and 51 minutes video lessons.
Welcome to Next Level eCom
This is an introduction to the Next Level eCom course, Chad will tell you how the course works for you, what is dropshipping, expectations and different types of stores e.g. general and niche stores.
Module 1: Product Research
Duration: 4 videos with a total length of 2 minutes and 58 seconds.
Chad only briefly mentions how to use Instagram, Facebook and Oberbo.
Module 2: Business plan/ Pre-building your store
Duration: 1 video with a length of 2 minutes and 44 seconds.
Chad tries to explain to you the foundation of a business plan in less than 3 minutes.
Module 3: Store Creation
Duration: 7 videos with a total length of 29 minutes.
Though it’s easy to set up a dropshipping Shopify store, it’s unlikely that he can cover the whole process in less than 30 minutes.
I’d rather suggest you watch free training videos on Oberlo.
Module 4: Social Media Marketing: Facebook
Duration: 9 videos with a total length of 22 minutes.
In this module, Chad teaches you how to set up a Facebook ad account and covers the important steps including FB pixel and adding an assistant to your account.
After that, he shares with you his Facebook ad strategy in a pdf document.
Module 5: Scaling FB ads
Duration: 6 videos with a total length of 39 minutes.
In this module, Chad teaches you how to scale your Facebook ad campaign after a certain period of time.
In addition to the previous modules, Chad offers a few bonus video lessons.
- Order fulfillment via Oberlo – This is a PDF document which teaches you how to set up Oberlo to handle your order fulfilment. But the content is available for free on the site of Oberlo.
- October 1st 2019 Case Study – This is a case study in which Chad shows you how he went from $0 to $8k a day, in less than a week.
- FB ads November 2019 update – Chad offers you an advanced strategy on running Facebook ads.
Is Chad Friedman a Scam?
I won’t say Chad Friedman is a scam.
But there are some problems with his sales tactics.
There are two websites for Next Level eCom. The first one claims that “…I have been dropshipping about a year and have generated well over $500k in revenue.”
The second one claims that after 16 months of doing dropshipping, Chad made “…well over $1,000,000+ in total sales.”
There are also screenshots of “income proof” from his “students” (see below)
However, you can actually create as many orders as you want in a shopify store.
Besides, even if the sales figures are genuine, they aren’t net profit. After taking into account the FB ad costs, product costs, shipping costs and chargebacks, they might turn out to be net loss.
Apart from that, the Facebook page has not been updated since September 2016. It seems that Chad is not concerned about Social Proof.
Is Dropshipping Still a Viable Option?
As an experienced dropshipper, what I can tell you is that dropshipping has become increasingly difficult. If you want to build a 6 figure dropshipping business, you need to shed some blood, sweat and tears to figure out how it works.
Here are a few points why I would not recommend dropshipping:
1. Financial Risk
Your dropshipping store won’t sell ANYTHING if you don’t ADVERTISE. But Facebook ads costs are skyrocketing and will eat away your PROFITS. You might need weeks or even months to just break even, before seeing any profit.
In another word, you have to take a huge FINANCIAL RISK in dropshipping.
2. Facebook ads are Pricey and Difficult
After observing most dropshippers’ results, at best, the total Facebook ad cost will account for at least 30% of your total sales.
But Facebook ads seldom stay effective for too long. Once your ad has exhausted the audience, it becomes ineffective. Your total revenue will be much lower and even result in net loss.
According to Forbes, Facebook saw an increase in Ad costs of 90% year-on-year.
Worse still, the learning curve of Facebook ads is quite steep because Facebook changes its algorithm all the time. You have to invest a lot of time and money in learning and testing Facebook Ads.
If you run Facebook ads without any experience, your ad account will be banned for violating their strict policies.
3. Customer Support
In dropshipping, you have to spend a lot of time communicating with suppliers and dealing with customer service.
If your customer has any issues with the product, you have to wait for your supplier to help you. If your supplier is not helpful, you have to bear the loss yourself. Therefore, many dropshipping stores have poor customer review and have no returning customers.
In the worst case, you would expect a lot of credit card chargebacks, which risk getting your payment gateway shut down.
4. A lot of work on product research
For your store to keep making money, you always have to find a product that has the momentum to go viral in order that the ads costs can be covered.
In dropshipping, most products reach their peak in 1-2 months or even weeks. This is because many competitors will steal your product and create a better ad. Or increase their budgets on Facebook ads to outbid you.
Therefore, you need to keep finding new replacements to keep generating cash flow.
You might see people post revenues online but they don’t tell you the net revenue.
Some of them might be making money but it’s not sustainable.
The dropshipping business model is not as passive as you think. Most people who succeed in dropshipping are doing it full time because it requires you to keep finding new products, creating new stores, testing new ads and looking for new suppliers to make your income stable.
Is There an Easier & Better Alternative to Dropshipping?
If you don’t want to waste your time or risk your hard earned money, you might wonder if there is a better business model that doesn’t need Facebook ads and can do it as a side-hustle.
Yes, I would suggest you getting started with affiliate marketing. It is far easier and less time consuming as you don’t even need to handle customer service.
In affiliate marketing, you can run your business almost with zero cost. Most importantly, you don’t need to invest in creating and developing any products.
But How Much Can You Earn in Affiliate Marketing?
A 21-year old student from my #1 recommended training platform of affiliate marketing was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods and affiliate marketing.
Wealthy Affiliate has existed for more than 10 years and there are many success stories over the years.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
Wealthy Affiliate has a very simple pricing scheme. It has free and premium membership.
If you want to feel about Wealthy Affiliate, you can sign up for the starter membership here (no credit card required). You can select to be a free member with no time limit.
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You can enjoy all these values without paying a penny.
So I strongly recommend you to register a free account and see it yourself.