Before this year began, projections of CBD sales were high. With the world facing an unexpected pandemic, interest in natural health products skyrocketed. That’s why now is a better time than ever to start a CBD business. Starting a CBD business can seem daunting, even overwhelming. You’re talking to people who’ve done Wondering how to start a CBD or cannabis business? Find out how to take advantage of CBD business opportunities in the booming CBD industry. Create your own CBD brand by private labeling, wholesaling, or affiliate marketing. Learn how to start a cbd business today!
10 Steps to Starting a CBD Business in 2022
Before this year began, projections of CBD sales were high. With the world facing an unexpected pandemic, interest in natural health products skyrocketed. That’s why now is a better time than ever to start a CBD business. Starting a CBD business can seem daunting, even overwhelming. You’re talking to people who’ve done it themselves! That’s why Todd Smith, co-founder of Joy Organics, is sharing these 10 steps to make the process less daunting and help you start a CBD business.
1. What’s Your Why?
Every successful company needs to have a purpose. There’s a reason you’ve decided to start a CBD business. Knowing “ what’s your why ” will help you make many vital decisions about business operations.
- Is this a hobby business to run with your family?
- Are you looking to make a full-time career change?
- Will this brand become a multi-million dollar business you intend to sell?
Each of these scenarios requires different resources, business strategies and human hours.
Knowing why you want to start a CBD business also helps you pinpoint your motivation. As Napoleon Hill said, “The starting point of all achievement is desire.”
Desire isn’t a hope or a wish. It’s what gets you out of bed and propels you to make tough and sometimes uncomfortable decisions. Without desire, we wouldn’t do the little things that make for big successes.
2. Who’s Your Target Market?
As much as you’d like to reach every demographic, it’s not feasible. You need to figure out who you’re selling to, so you can design your brand around their preferences. Your target market dictates everything from packaging to blog content to marketing campaigns.
- What do they do?
- Where do they shop?
- What do they care about?
- What is your connection with them?
- Does selling to them excite you?
You can’t just be a one-size-fits-all company.
Creating a connection is pivotal to reaching your demographic. You need to know how they think and what their needs are, so that your brand can provide unique solutions.
We’re lucky that our co-founder, Joy Smith, is our target demographic. She’s a woman between the ages of 35 and 65, who cares about the environment and shops at Whole Foods. Joy knows what her peers find appealing and we cater to those needs.
Since Joy experiences the benefits of CBD, sharing them with others is a desire. Therefore, it excites all of us to be a part of the CBD industry. Does your target demographic spark that same passion? If not, reconsider your target market.
3. How Will You Market Your Business?
To start a CBD business successfully, you must invest a lot of time, money, and energy into marketing. Marketing is where identifying your target market comes into play. You have this clear vision of your ideal customer…now how will you pitch it to them?
First, ask yourself where you’re going to market:
Creating a marketing plan is where you peel back the layers of your customer. Are they eco-friendly people who shop at farmers markets? Then get a booth at local fairs in your area.
Maybe they’re retired people who need joint support? Your resources are better suited on flyers on retirement home bulletin boards and local circular advertisements.
Perhaps they’re millennials who are strictly online shoppers. Then you’ll need to download funny GIFs and up your social media campaigns.
4. Select Your Domain Name
Before you name your brand, see if the domain name is available. If so, buy it before you start design production. You don’t want to run into legal troubles or lose out on the domain after you’ve already invested money in packaging.
Even if you plan to start a CBD business offline, your brand will still need an online presence. You will rely on Google location services for customers to find you.
Here are a few tips for choosing a good domain name. Your domain name should be:
- Appealing to your target market
- Easy to spell
- Easy to remember
- Two words
- Ending in a .com extension
Pick a memorable name which people will associate with that particular item. For example, Burger King sells flame-broiled burgers to 16-35-year-old males. Forever 21 makes clothes for 17-24-year-old females. These brand names conjure immediate images of the brand and its customers.
Joy Organics’ target demographic seeks products that support a healthy and happy lifestyle. Hence, “Joy.” They’re also environmentally conscious. So, “Organics” resonates with them.
Lastly, make sure you can procure the .com extension. There is far more internet credibility with .com than .co or .xyz, for instance.
Research if the domain is available on GoDaddy.com . Click their free “WhoIs?” database and see who owns the name.
We did this when we started Joy Organics. After finding the owner, we paid for the domain name, and were ready to start a CBD business!
5. Create Your Brand
Creating your brand revolves around meeting your target market’s needs, desires, and expectations.
Consider things like
- What are their favorite colors?
- What photography do they find attractive?
- Which design elements do they like?
Scroll through websites where your target market shops. See what design aesthetics resonate with your brand.
Don’t reinvent the wheel!
When you start a CBD business, you’re not going to compete with the big guns right out of the gates. Learn from them instead.
Once you have your brand identity in mind, it’s time to bring your vision to life. Decide whether you’re going to take photos and create designs on your own, or hire a professional. If you hire a professional, don’t be afraid to get hands on, ask questions and collaborate to see your vision through.
6. Design Your Logo
Logos are almost more synonymous with a brand than their name. Everyone knows Nike from the swoosh. Therefore, designing your logo is one of the most important steps for starting a CBD business.
Through the Joy Organics White Label Program, we’ve learned a lot about what looks good on tincture bottles, and what doesn’t.
Here are some tips for design a good logo:
- Keep it simple
- Avoid shadows
- Make it large enough to stand out
You can try to find your own professional designer online. If you want a few options to choose from, you can sign up for the gig auction site, 99Designs.com . For a more collaborative effort, you can also work with Joy Organics. We have state-of-the-art design programming that makes unique and eye-catching logos.
7. Build Your Website
Your online presence depends on a high-functioning website. Thankfully, building a website yourself is easier than ever. Choose a template you’d like to download from ThemeForest and integrate it with WordPress, Shopify, GoDaddy, or another host.
It’s important your website is responsive, meaning it’s optimized for viewing on:
Of course, you can always hire a professional. This is where your “why” comes into play. If you want to start a CBD business as a hobby, then don’t use your resources to hire a professional. Build the site yourself.
Make sure you have high-quality product shots on your website with easy navigation. People shouldn’t have to search for what you’re selling.
Also, keep up with content. Content is an opportunity to inform, and ultimately, convert your customers. It allows people to connect with your brand.
Plus, Google considers the amount of time people spend on your site. If you create engaging content that holds people’s attention, Google is more apt to recommend your page to others.
If your goal is to create a multi-million dollar company, hire a professional. They will optimize your site for functionality, searchability, and aesthetics.
8. Apply for Your CBD Merchant Account
You can’t just go to your bank and get a merchant account that does CBD. Apply for a CBD merchant account in advance. It takes around four to six weeks.
In the United States, there are currently around seven banks that do CBD processing. If you apply for one that doesn’t do CBD processing, they’ll cut you off without advance notice. Email [email protected] , and we’ll be happy to tell you which banks accept CBD merchant accounts.
9. Select Your CBD Partner
There are two main questions you must ask yourself when you start a CBD business:
- Do I want to partner with an existing brand?
- Do I want to create my own brand?
Partnering with a reputable brand like Joy Organics is an excellent way to start a CBD business without incurring too many costs upfront. You can order products in bulk and don’t need inventory on-hand. Plus, our tinctures and Jarred salves are now USDA certified organic, so you get an even better product when you partner with us.
However, creating your own CBD brand offers you more autonomy. You have more control over creating brand loyalty. While the risk is greater, you might reap even greater rewards.
10. Advertise Your Business
Even if you hire a professional, be sure to educate yourself on how to advertise your business . You’re creating the brand that’s fostering a connection with your target market. Research how to forge that bond, so you can make educated decisions about spending your resources on advertising.
Make sure you’re specific and strategic. Hire marketers who specialize in your needs. Hire writers who are well-versed in search engine optimization (SEO). If you’re looking at pay-per-click (PPC) campaigns, hire somebody with a record of success in that avenue. Your business’ success lies in their hands.
CBD is a different animal than other products. Don’t hire an advertising agency that’s not familiar with the legalities and nuances associated with the CBD industry. If you need references that our partners love, just ask. We’d love to help!
Connect with Joy Organics
If you are serious about starting your own business, reach out to one of our wholesale and private label specialists. Everyone on the team has helped hundreds of people start their own CBD businesses and would be happy to give you advice and guide you through the process. Fill out our contact form and someone will be in touch shortly.
Thanks for reading! To show how much we appreciate you, we’re going to give you 16% off your next order. Just use code READER16 at checkout!
Todd Smith is Joy Organics Chief Partnerships Officer and Co-founder. Before Joy Organics, he worked in the wellness and nutritional industry for over three decades and helped generate over 1 billion dollars in supplement sales. He has applied that knowledge and experience to empower over 1000 businesses through Joy Organics’ partnership programs. Todd is also the author of a book, podcast, and blog titled Little Things Matter.
How to Start a CBD Business: Navigating the CBD Industry
If you’re wondering how to start a CBD business, you’re not alone. The CBD industry has exploded in growth in recent years, sparking interest in entrepreneurs to get into the CBD business. Truthfully, the cannabis market is growing fast and strong. Given this, now is a great time to start a CBD business. In this article, we’ll discuss what CBD is and take you through a step-by-step approach to breaking out in the industry and making the most of CBD business opportunities. Read on to discover how to start a CBD business online.
How to Get Into the CBD Business
According to BDSA, the market for CBD is expected to grow to $20 billion in sales by 2024. That makes it one of fastest growing segments in the cannabis and hemp industry. To get into CBD business opportunities, you must first learn about cannabinoids. Understanding what they are and how they’re used in products will help you sell them better to your customers. Then, you must consider all of the business aspects that go into running a successful CBD business.
What exactly is CBD?
CBD is one of the compounds found In cannabis and hemp plants. These compounds are named cannabinoids and there are a lot of them, more than 100 cannabinoids in fact. Tetrahydrocannabinol (THC) is the best known cannabinoid due to its intoxicating effects. CBD, however, does not have this psychoactive effect and offers multitudes of potentially therapeutic and health benefits. Research into its medical applications is still ongoing. To create CBD products, there are several steps that must happen. We’ll discuss this later on.
How it differs from hemp or cannabis
As you now know, CBD is one of the compounds in hemp and cannabis plants. You can extract CBD oil from these plants to create CBD oil products. The difference is hemp has less than 0.3% THC, so it’s legal to cultivate, harvest, and process it to make products in the U.S. Cannabis has more than 0.3% THC and is illegal on a federal level.
What Projections Say About New CBD Business Opportunities
The CBD industry has been growing in popularity since 2016. The number of US CBD consumers went from 2.6% to 4.8% in 2018. Many consider this the breakout year for CBD. Whether it be due to the pandemic and people working from home or simply entrepreneurs trying to get a piece of the pie, the CBD industry is hot.
Despite the modern CBD industry being relatively young, it’s a highly profitable space. Grand View Research found that the industry as a whole was valued at $4.6 billion in 2018, and it’s only gone up from there. With loosening restrictions and new forms of consumption that CBD businesses can expand into, the industry has had a compound annual growth rate of about 22.2%. These figures just go to show how now is an ideal time to start a CBD business. But where should you start?
How to Start a CBD Business in 2021
With stats like the ones above, it’s no wonder that people are getting into the CBD and cannabis business. You can start your business in the CBD industry in just ten steps.
Step 1: Discover your target audience
It’s unfeasible to reach every demographic, so you’ll need to determine who you’re going to cater your products to. That way you can build your brand around their needs. Your target market will determine everything from your product’s packaging to the content you incorporate into your marketing campaigns.
Ask yourself some of the questions below to help determine your target market analysis:
- What do they do?
- Where do they shop?
- What do they care about?
- What products are they interested in?
Step 2: Read up on all local and federal regulations for CBD businesses
The commercial production of hemp in the U.S. became legal with the passing of the Farm Bill in 2018. This has enabled the sale of products that contain hemp-derived CBD and allow people to grow industrial hemp.
There are some restrictions, too. For example, the hemp used to produce CBD must contain 0.3% THC or less. Unfortunately, state laws are different. So be sure that you have a clear understanding of the federal and state-level regulations that may affect your CBD product sales.
Do you need a license to sell CBD?
Some states require you to have a special business license to sell CBD. If you plan to purchase your product from wholesalers, check your state laws regarding resale licenses and permits. These laws are different everywhere, so you’ll want to find out whether you need a resale license and how to get one.
Below are the most common states to sell CBD in and their regulation status:
- Selling CBD in Florida. There are currently no set limits on the amount of CBD products a business can sell in Florida. While marijuana is legal for medicinal purposes, CBD products must not exceed the 0.3% THC federal allotment.
- Selling CBD in Texas. Currently, Texas’s Department of State Health Services is forming a registration process for retailers who specifically sell consumable CBD products. However, retailers must keep their suppliers in check as it is a felony to sell CBD products with more than 0.3% THC to the general public.
- Selling CBD in California. CBD and marijuana are both legal to sell in California for recreational purposes. When selling CBD products, retailers must ensure they follow the labeling requirements imposed by the California Department of Public Health.
- Selling CBD in Oregon. Much like California, selling CBD in Oregon is legal and follows federal law about the amount of THC allowed. There are no licenses required for retailers but there are certain labeling requirements mandated by the Oregon Department of Agriculture.
Step 3: Form your business plan
A business plan is a formal document that details a business’s objectives and how it plans to achieve its goals. Think of it as a roadmap that tells you how to handle aspects like marketing, operations, and financials. Writing a business plan can help you strategize, secure funding, and set yourself up for long-term success. Having a formal plan is especially important in the cannabis business because investors are looking for legitimate organizations.
What types of CBD products will you be selling?
In your business plan, you will also define what products you will be selling. There are a variety of different CBD products. For example, you may get into the CBD oil business and focus narrowly on those products. Other CBD products include:
- Tinctures and sprays
- Pills and capsules
- CBD vapes and cartridges
- Topicals and patches
- CBD edibles
Step 4: Register your CBD business
In order to sell CBD in a store or online, you will need to legally register your business. LLCs are a popular structure for small businesses but consider the other business types. You must also request an EIN/TIN with the IRS for your new business. Once you have your business license, you can begin sourcing and selling your products.
Step 5: Secure reliable merchant services
To sell CBD online, you need to have a payment processor that allows you to accept different payment methods. It’s important to choose a merchant service provider that not only accepts CBD merchants, but also understands the industry. You’ll want to find a processor that meets your business’s unique needs.
Step 6: Find your CBD supplier
There are two routes that you can take with your CBD or cannabis business. The first is to create your own CBD products. This gives you more autonomy and you’ll have more control over creating brand loyalty.
The second option is to partner with an existing brand or dropshipper. This is an ideal path if you want to start a CBD business without having too many upfront costs. You can purchase products in bulk without having the need to have inventory on hand. If you take this route, be sure to do your diligence by searching for a reputable brand to partner with.
Step 7: Establish your pricing strategy
To create a pricing strategy, you must know how much your costs are for operating your business. A few questions that are important to consider are:
- How much can you charge for your products?
- What are your ongoing expenses?
- How much profit do you intend to make on each product?
- How can you become more profitable?
Step 8: Solidify your shipping and handling strategy
Shipping and handling are very important to an eCommerce business. You always want to ensure that you are meeting your customer’s expectations. Here are a few questions to ask yourself when strategizing your shipping policy:
- What should be the threshold for free shipping?
- Should I offer a variable fee? Destination-based or weight-based shipping fees can reduce logistics costs.
- What is a feasible delivery timeline?
- What logistics carrier should I work with?
Based on these answers, you can then select supporting shipping and fulfillment software. This enables you to set shipping rates, print labels, auto-send updates to customers, and manage logistics.
Step 9: Market your CBD business
Once you have a thorough plan for your operations, you can then focus on acquiring customers. Just because you have a website and CBD is popular doesn’t mean that shoppers will come running. You need a solid marketing plan, one that draws the right audience to your offerings.
Unfortunately, CBD products are often misunderstood. However, this allows room to build your customer base by educating interested buyers with accurate information. This can include content on different product types, potential benefits, and the hemp industry as a whole. Publishing regular, informational content will also help you with search engine results. Learn and leverage the latest in SEO to help you find potential customers for your CBD business.
Stand out from the crowd of other CBD businesses
With more and more business owners joining the industry every day, it becomes that much harder to stay competitive and top-of-mind for your audience. But by differentiating yourself from the competition, you make your products more memorable for your current and potential customers. With that in mind, do some deep diving to find what sets you apart from your competition.
- Does your manufacturing process result in a product that’s more effective?
- Are you backed by industry experts or influencers?
- Do you serve a niche audience?
- Does your branding or online marketing efforts leave a lasting impression on viewers?
Discover what you bring to the table and double down on it. It will help you determine the steps toward growing your CBD business and set a precedent for your consumers.
Diversify marketing channels to grow your CBD business
Just because you will be doubling down on traditional marketing efforts does not mean that the other avenues aren’t important. Social media marketing has become increasingly important to a younger audience as well as influencer and affiliate marketing. Industry trade shows are also great opportunities to find your next supplier, seller, or customer.
from influencer marketing is just as good, if not better than other marketing channels. , which speaks to how effective they are in generating revenue. that fill the top of the funnel for many smaller businesses.
Influencer and affiliate marketing
Influencer and affiliate marketing are especially attractive because they unlock access to a broader customer base that you didn’t have before. And after you design the initial campaigns, they involve very little work on your end, outside of periodically checking in with your influencers and affiliates. They do much of the heavy lifting, as they’re the ones responsible for creating the content ideas to promote your products.
Trade shows and conferences
Trade shows are unique in that they give you face-to-face interaction with businesses and customers in your industry that you may never see when running an eCommerce business. You can get feedback directly from them in a way you can’t do online. This leads to innovation and product improvement in the long run. But even more so than generating customers, you will have direct access to suppliers, sellers, marketers, and industry experts. Taking advantage of what they bring to the table will put you in a better place to grow your CBD business.
Step 10: Protect yourself from industry risks
The CBD industry is a risky one. The landscape of legislation and the adoption of CBD in everyday life have both been tough factors to contend with. There are just so many variables to keep track of.
Regulations and laws change almost daily, and it’s up to you, the business owner, to ensure that your company is up to date. It isn’t an easy task. Make sure you’re aware of the business legal requirements you need to start or uphold your company’s status as legitimate.
With so much riding on how the laws progress, the amount of capital you have, and the ability to secure emergency funds for your CBD business should be your priority. Also, consider securing backups for each of your vendors and create plans of action for potential future scenarios. In addition to this, certain types of products, such as CBD beverages and other ingestibles, are treated differently than lotions and creams. Purely due to how these items are used, can mean the difference between high risk and low risk.
As your company grows, you’ll want to consider adding a financial advisor and lawyer to your team. They can help you detect changes, act upon legislation, and mitigate issues before they happen.
Staying up to date with CBD legality reduces your risk
A deep knowledge of the industry will help you mitigate risks as you grow your business in CBD.
Although hemp-derived CBD is legal on the federal level, it’s ultimately up to each state to determine its legality. Staying updated on the latest news in your industry will help you to pivot quickly if needed. This puts you ahead of those who aren’t well prepared and allows you to seize opportunities when they’re available.
Subscribe to industry blogs and publications, follow experts on platforms like LinkedIn and Twitter and network with people in different parts of your industry.
If you’re the owner of a small CBD business, for instance, stay in contact with growers and legal experts — people outside of your immediate sphere of knowledge. You expose yourself to different viewpoints on an issue, and you may even discover something your less-connected peers missed, giving you an advantage in this highly competitive market.
Your payment processor can help you overcome risk hurdles
Considering all of the volatility in the market and laws, many CBD businesses have struggled to find and hold onto a CBD merchant account for their business. The reason for this stems from the fact that most banks don’t like that the industry is entrenched in legality changes. But in order for you to stay in business, this is an essential piece of the puzzle.
So how can your payment processor help?
Well, some credit card processing companies can get you set up with a traditional merchant account for CBD. These come with more stipulations and adherence guidelines than other industries, but at least you will be able to process debit and credit cards online and in-person if need be. And while this is the best option for many businesses, it can change.
In the event that banks are unable to support CBD businesses, your processor can keep you online with check processing solutions. It’s not the most convenient answer, but at least your business will be able to accept customer payments while things get sorted out.
Start Your CBD Business Today
It takes a lot of hard work and determination to grow a successful CBD small business. From finding a supplier to securing high risk merchant services, you may feel a little overwhelmed. However, don’t let that stop you from pursuing your aspirations of starting your CBD business. Every day regulations and local legislation are making it increasingly easier for businesses to offer safe and reliable CBD products to consumers. On top of that, consumer trends keep pointing to the expansion of this lucrative industry. Fortunately, by following these tips on starting and growing your business in CBD, you’ll be on the short track to success in the years to come.
Bronte is a designer and marketer based in Los Angeles, CA. She has been creating and promoting content for over 3 years, covering a range of topics in the payment processing industry. Bronte is currently the Director of Marketing at PaymentCloud, a merchant services provider that offers hard-to-place solutions for business owners across the nation.
Learn How To Start A CBD Business in 2022
If you want to create your own CBD brand, sell CBD product in your store or boutique, or even if you just want to earn a commission by promoting other people’s (or company’s) CBD products. then this is the most important blog article you’ll read. Ever!
Because in today’s cannabis world, CBD is a billion dollar industry that anyone can enter and make millions with little to no money, licenses, experience. I want to show you how.
My name is Cory Holmes and I am the founder of Holmes Organics, a wellness brand that offers CBD products. We offer products from CBD Oil, Softgels, and Gummies… to even CBD doggy treats.
This blog/course will teach you how to start a cbd business in 2022!
Every day you wait is another day the other people and companies are making money in the CBD industry while you DON’T!
In Fact, Here’s Just The Tip of The Iceberg of What You Get.
- You’ll discover exactly 3 different business models on how to earn money in today’s CBD market. Which you can literally start in 30 days or less.
- You’ll understand exactly how to structure an entity for your CBD businesses.
- You’ll skip past most of the mistakes and obstacles that stop MOST cannabis startup business owners from competing in the CBD industry.
- You’ll know exactly how to build a money making CBD e-commerce website that literally makes you money while you sleep.
- You’ll understand how to choose the right distributor of your CBD Products
- You’ll have access to insider information and personal business contacts for high risk banking and credit card processing.
- You will learn the best selling CBD Products that will make you the most money in a short amount of time.
- You’ll even learn marketing secrets to getting your business and services in front of millions of people.
- And much more.
Be sure to follow this blog/course from start to finish and implement everything you learn immediately. Before you know it, you’ll be competing in a billion dollar industry. Good luck.
Step 1: Educating Yourself On Cannabis Industry
This is extremely important. You can’t just start selling products without being knowledgable about them. CBD is no different. In fact, you need to strive to know everything and the Cannabis industry.
Currently the government is working diligently to get laws in place for the industry so you need to stay current. Below are helpful resources.
Know The Law
- Do NOT sell any CBD products that has more than 0.3% of THC
- Third Party LabTesting is Essential
- Do NOT make any medical claims
- It’s advised to have transparent labels and packaging
- Please consult a lawyer
M4MM INDIVIDUAL/START UP BUSINESS MEMBERSHIP- $100 YEARLY
- Membership Certificate
- Free admission to dice networking mixer
- Business logo on the M4MM website
- 1 hour complimentary business consultation
- Member of the week social media posting
- Monthly virtual membership meeting
CANNABIS BUSINESS NEWS & TIPS
- Get the latest news on the cannabis industry
- Business advice, jobs, and more ideas
- Excellent marketing opportunities
CANNABIS BUSINESS NEWS & TIPS
Aimed at those interested in investment, entrepreneurship and changing careers, the workbook uses guided exercises to help committed readers develop personalized plans for success.
- Top hem CBD blog site in the USA
- New updates daily
- Product reviews
- Marketing Platform
CBD WELLNESS BLOG
Visit the Holmes Organics blog today for the latest information about CBD products, news, information, resources, recipes, business,
- Tons of books on CBD and cannabis
- Reasonably priced membership
- You can’t wrong investing in yourself. Books have millions of dollars worth of information
Step 2: Top 3 CBD Businesses You Can Start NOW
Have you ever wanted the opportunity to start your own brand? What about your own brand in a billion dollar industry with no clear market leader at the moment? This is the chance of a lifetime to get in early and establish yourself as the brand of choice for CBD products.
You will be doing the same thing as people like Rihanna and Kylie Jenner ..finding a distributor and putting YOUR BRAND on the label.
You may be wondering.
- What’s the cost of owning your own brand?
- Who do I buy product from?
- Do I need a license?
Well read further for the answers.
The Free Business Model
- All you need is a URL
- Your Facebook, Instagram, YouTube, Or Your Website
- Promote reputable CBD companies for a commission
- Sometimes up to 40%!!
- Easy Sale
- It’s easy to sell products that help people
- Cookie System
- 60 and 90 day cookies
- Keep earning money from the same person over and over with little to no advertising
Reputable CBD Affiliate Programs
The Inexpensive Business Model
- Fast start for as little as $250
- Buy at 50%-60% of retail pricing.
- Sell at whatever price you want
- Sell as many brands you want
- Mix CBD with your current products and services
- Sell in your shops, restaurants, farmer’s market, trade shows
Private Label CBD
Why You Should Own Your Own CBD Brand?
- It’s relatively inexpensive to start. as little as $2500
- You can play ball with the bigger brands. and win
- You’re in control
- Gain recognition
- You’re known as the expert
- Change people’s lives
- No licenses required
Step 3: Setting Up Your CBD Business Structure
Structuring your business is not as hard as you may think. In fact, it can be done in a very short amount of time without spending a lot of money. You’ll want to follow these steps to make sure you don’t hit any annoying roadblocks down the line with things such as banking and credit card processing.
Name Your Company
Your brand’s name is everything! You need to make sure you choose a name that’s easy to remember, differentiate yourself from all of other CBD companies. Your name needs to be able to withstand the test of time.
Study your competitor’s names to get a better idea of what or what not to name your company. Avoid using words like “Hemp”, “CBD”, “Cannabis”,”Canna” or any similar words in your name. You’re going to put your company in a box and not stand out as much. You could also run into issues with getting a bank to let you open up a business account. More on banking later on in this chapter.
Once you have your name, you’ll want to trademark it. Check the U.S. Patent and Trade Office for any marks on your chosen name. If there aren’t any, it is best that you contact a Patent Attorney. If you find that your chosen name has a mark, then you’re shit out of luck. Choose another name so your can avoid any lawsuits down the road.
Take a day or two to think on it. Also ask your friends and family and get their opinions on a name.
Set Up Your Business Entity
- Visit your Secretary Of State’s website
- Legal Zoom is a great option!
- Speak with an attorney
Receive Your Employee ID Number
- Apply for your EIN online
- IT’S FREE!
Purchase Your Corporate Domain And Email Address
- Use a “.com” preferably. Do not use @gmail.com, @yahoo.com, @hotmail.com
- Use SiteGround, G-Suite, Host Gator, Blue Host, or GoDaddy
- Example: “[email protected]”
Set Up Business Bank Account
Bypass a bank all together and find a CBD friendly local credit union.
Documents needed to open your CBD business account:
- Articles of incorporation/ organization
- EIN number
- Operating agreement
- Visit Law Depot For A Free Operating Agreement
WARNING: BE CAREFUL ABOUT MENTIONING YOUR CBD BUSINESS TO YOUR BANK. THEY MIGHT TELL YOU TO TAKE ALL OF YOUR BANKING ELSEWHERE.
Business Phone Number
Use Google Voice for a FREE business phone number.
- FREE real phone number from Google
- You can send text, phone calls , and voicemail
- You can also use with your current smart phone
If you’re starting an E-Commerce business, you can purchase a virtual business address for as little as $10/month.
Clients and other professionals often search for reviews through listing services such as “Yelp”.
Below are four listing services to register your business for.
Step 4: Designing CBD Merchant & FDA Compliant Website
Let’s build a strong backend that can handle traffic, process transactions , and grow your online presence. If you don’t get this right, then there’s a possibility that your store could lose the ability to make money online. This means that your credit card processing will deactivate after the first transaction is made and you won’t be able to take orders.
Important Website Must Haves
There are a number of requirements that must be on your website before you can be granted a high risk credit card merchant account. Here’s a list of them all:
- Your website name and business name must be exactly the same or closely match.
- DO NOT list Stripe or PayPal as a payment method. At the time of this writing, neither Stripe or Paypal approves CBD transactions.
- You must specify your shipping methods and timeframes.
- You must have a registered domain.
- Your website must be SSL secure. For example your website should read “https://yourwebsite.com”. The HTTPS is important. There should also be a green lock in front of the URL.
- If you offer pet products, they must be in a separate category from your other products. They can not be listed on the same page as your non-pet products.
- All products must list:
- Pictures of labels with ingredients visible
- Terms & Conditions
- Refund Policy
Choose Your Shopping Cart Wisely
Your website’s shopping cart solution is also extremely important. You can use Shopify but DO NOT USE Shopify’s shopping cart, “Shopify Payments”. They will shut down your credit card processing. You may now be thinking, “Well, I can just use PayPal.”. Nope. Once PayPal finds out that you are taking orders for CBD products, they will shut you down.
Use Plug And Play Templates
Creating your website has never been easier than it is today. even if you’re not a technical person. Gone are the days of spending tens of thousands of dollars to hire someone to build your website, which might take over a month to complete. There are free or inexpensive platforms like Wix, Squarespace, or WordPress that allow you to utilize plug and play templates to build your website in hours.
I recommend using the WordPress platform because it gives you a ton of flexibility for cheap. You’re going to need that flexibility to navigate around the pitfalls of setting up your shopping cart and credit card processing.
WordPress also allows you to download themes. But a lot of them are not intuitive to use. My theme builder of choice is Elementor which you get for FREE.
Pictures Are Worth A Thousand Words
You should definitely have pictures of your products as well as lifestyle photos on your webpage. Use professional 3D renderings for your online store’s shop page for a more professional look.
A Nice And Simple Logo
Your logo is usually the first thing people see when they reach your website. So it should be easy to read font with a simple design that describes your name and brand. Use platforms live Fiverr, Upwork, or my favorite Tailor Brands for quick and affordable logos for under $10.
Copywriting Is Everything
Copywriting is extremely critical to your website’s ability to convert. If you want to drive your website viewers from click to close, then you MUST master this skill. To further drive home the importance of copywriting, professional copywriters can command at least $10,000 per page on your website. It’s important!
You may be thinking, “what is copywriting and where do you use it?” In simple terms, copywriting is words that sell a product or service that you offer.
Copywriting can be used on the following:
- All of the pages on your website.
- Social media posts
- Email marketing campaign
- Social Media Ads (If social media platforms ever approve CBD ads)
- Youtube Videos
- And much more
There are plenty of things to write about when creating your copy.
I want you to focus on 6:
- Grab attention with a bold headline.
- Identify the problem your CBD products will solve.
- Identify the solution to the problem.
- Provide proof on why your products will solve the problem.
- Show the benefits in using your CBD products over others.
- Provide Testimonials to show that your products have helped others.
Study the copy techniques of large companies like Bose or Apple. If you can create persuasive copy for your website, you’ll will experience constant sales transactions.
Step 5: Choosing The Right CBD Partner (Wholesale & Private Label)
Choosing the right partner is crucial your longevity in business. The CBD market is booming and there are lots of companies fighting for market share in the space. There are also lots of companies that offer low quality products and are not operating with integrity. You want to do your due diligence and vet companies and their products thoroughly before you partner with them. The quickest way to fail in your CBD business is to offer low quality products and services.
You will soon realize that the CBD industry is highly unregulated so you need to try products from various companies. You also want to pay attention to their processes and customer service.
Here are 5 main factors to consider when choosing your CBD distributor.
- Choose a high-quality product
- Choose a company with great service
- Choose a company that fits with your standards
- Choose a company with logical pricing and product selection.
- Choose a company with great marketing support.
View for more information:
Step 6: CBD Banking & High Risk Credit Card Processing
Without the ability to process credit card payments, your CBD business will be limited. But things are so bad in the industry right now that small businesses are choosing to risk it all to process credit cards in a way that could shut their business down for good.
This topic is definitely a topic you want to stay up-to-date on. daily!
You must have special merchant processing to take payments for your CBD business.
Banks & Credit Unions
Be extremely careful when opening up a bank account with your current bank. Do NOT tell them you’re in the CBD business. If they find out then they will close ALL your accounts and tell you to take your banking elsewhere.
I recommend using a credit union. Some of them are CBD friendly due to the fact that don’t have to follow FDIC rules.
NO PayPal or Stripe
Paypal and Stripe are NOT CBD friendly. If they find out you’re processing CBD product, they will close your accounts.
Top 4 Credit Card Merchant Processors
- Startup friendly
- Lowest rates in the industry
- Use of Square’s Free Swipe
- Startup friendly
- Integrates w/ Shopify
- Custom pricing for each merchant
- Startup friendly
- A+ BBB Rating
Step 7: Marketing Your CBD Business
So you’ve set up your business and now you’re ready to start making sales. The real work begins now. Marketing your CBD brand will be a huge challenge in itself. You’ll have to get really creative but there are ways to get your products in front of eyeballs without a huge financial commitment.
Let’s discuss what NOT to do first.
You Can’t Use These Popular Marketing Strategies
- Facebook is NOT cannabis friendly
- If you try to create ads, they will “red flag” your business
- You run the risk of your Ad account being shut down
- You CAN create posts, stories, videos
- Also NOT Cannabis friendly
- Your ARE allowed to sell CBD but your labels CANNOT say “CBD” anywhere
- Your labels and descriptions should read “Hemp Extract”
Top Ways To Market Your CBD Brand
Word Of Mouth
- An endorsement from a single person can bring lots of attention/ sales
- People believe follow what they see. If one person they trust gives the “OK”, then other people are willing to try
- If your product works, then word can spread
- Start an informational blog or vlog
- YouTube, Facebook Live, IG stories are great ways to market your business
- Have links to your brand and website in your content
- Choose expos that fit your target market
- Allows for face to face interaction
- Leverage other people’s large following to boost your brand for a cheap price
- Focus on “micro Influencers”
- The easiest way to may a quick $1000+ in one day
- Send out email blast to your audience about sales and information
- The most cost effective email solution we’ve found (and use) is called MailerLite. You can create landing pages, email campaigns, list segmentation, automation, etc. starting at $0.
Step 8: Drop Shipping CBD Products
Drop shipping your products can save you lots of time and money. It’s also away to provide a consistent shipping experience for your customer. Now you can focus on building a scalable business while possible working less. Automated Passive Income.
Here’s a couple of solutions for you:
- Start with as little as $5/month plus shipping costs(which your customers can pay)
- 2 Day Shipping
- Fulfill Order 7 days a week
- Integrates with major ecommerce platforms like Shopify and WooCommerce
There are four major requirements for joining the Joy Organics Partners’ Fulfillment Program: