CBD is no longer a secret. Ever since the 2018 US Farm Bill legalized hemp, this calming cannabinoid has become all the rage in North America. So, if you’re thinking about becoming a CBD distributor, you’re not early to the game.
However, don’t let that dissuade you from entering this highly lucrative field. Financial analysts still predict the CBD market will grow to at least $20 billion by 2024. Although CBD may now be a household name, that doesn’t mean there’s no more “green” to be made. You just have to prepare to enter a more competitive marketplace.
If you’re thinking about becoming a CBD distributor, you should review all of the tips listed below. Putting these suggestions into action could help you gain a foothold in the ever-expanding world of CBD.
Dominate The Distribution Game — Strategies For CBD Business Success
Who Are You Selling CBD To? — Establish A Clear Business Model
A big reason why CBD is popular has to do with its versatility. You’ve probably already heard from people who use this cannabinoid for multiple reasons. From skincare and muscle aches to anxiety relief and better sleep, there are loads of ways you could market CBD in your business.
While many people place CBD in the general “wellness” category, you should think about specializing in one area. For instance, some retailers target chiropractors and physical therapists who want to use CBD topicals in their clinics. Some distributors are only interested in promoting CBD’s anti-anxiety effects, while others target athletes who want to boost their performance. Believe it or not, there are even a few distributors who are solely interested in CBD for pets!
Of course, there’s no “wrong” demographic to target; however, you should ensure your focus remains consistent. By specializing in one area of the CBD industry, you’ll have an easier time differentiating from the more general “wellness” companies.
Be sure to write down a thorough business plan to help guide all of your future decisions. The better you understand what slice of the CBD market you’re most interested in, the easier it will be to design your store’s logo, name, and website.
Figure Out Your Finances — How Much Does It Cost To Start CBD Distribution?
As you define your CBD company’s focus, you also have to spend some time crunching numbers. Unfortunately, “money trees” are a mere fantasy; you’re going to need cold-hard cash in your bank account to get off the ground running.
Just how much money you need will depend on what kind of business you want to open. Generally speaking, it costs more to open and maintain a brick-and-mortar location versus an eCommerce platform.
New CBD distributors often say it’s more financially feasible to focus on an Internet-based shop before opening a physical store. Indeed, launching an online CBD store offers greater market penetration with zero rent or maintenance fees. Those with less capital may want to start building their brand online before creating a brick-and-mortar location.
Whatever you choose to do, please look into your projected expenses and compare them with the capital you have on hand. Although every situation is different, most industry experts say you need $5,000 to launch in the CBD market successfully.
Connect With The CBD Community...Both On And Offline!
Since the CBD industry is super crowded, you need to get your name out there as often as possible. This means formulating and deploying an aggressive advertising campaign both online and in-person.
First off, be sure to test multiple brand names in Google AdWords to see which one has the best prospects. Hiring a few SEO experts will significantly bolster your chances of ranking high in search engines for CBD-related queries. As hinted above, you’ll have an easier time ranking on Google if you focus on a niche segment within CBD rather than general “wellness” trends.
But it’s not enough just to rank well on Google nowadays. Every successful business has to “get social” on platforms like Facebook, Twitter, and Instagram. On top of connecting with customers, social media is a great place to promote flash sales or new product launches.
While being “digitally savvy” is crucial in today’s marketplace, that doesn’t mean you should pooh-pooh IRL events. LinkedIn is a great place to discover conferences and network with people in the hemp industry. Participating in these events won’t only raise awareness of your products, it will give your company a “personal touch.”
Branch Out From “Boring Old” CBD Oil
CBD oil may still be hot, but it’s far from the only product on today’s market. If you want to retain your customers, you need to offer them way more than the “old standards.”
Now that CBD consumers have more choices, they’re getting a bit picky about what products they want. Not only do you need to offer multiple forms of CBD (e.g., tinctures, edibles, and topicals), you should offer products with different potencies (i.e., full-spectrum, broad-spectrum, and isolate).
Interestingly, one of the fastest-growing segments in the CBD space is smokable hemp. In fact, the smokable hemp flower category is now worth at least $80 million.
Although hemp buds taste like dank weed, they are 100 percent non-intoxicating and 100 percent legal. Many customers rave about using our well-cured hemp strains to naturally de-stress at home or over a friend’s house. There’s also a growing number of nicotine addicts who use hemp pre-rolls as an alternative to cigarettes.
We encourage you to browse the wide range of CBD goods now in Organic CBD Nugs’ portfolio. With a partner like Organic CBD Nugs, you will have access to a diverse assortment of high-quality CBD goods.
Don’t Shy Away From “Alt Cannabinoids”
Who said you could only sell CBD at a CBD store? Cannabidiol may be in the spotlight, but a few “alt cannabinoids” are causing quite the stir on social media. Adding these “cutting-edge cannabinoids” to your portfolio will certainly help you attract attention.
For instance, there’s been a massive surge in demand for the non-intoxicating cannabinoid CBG. Short for cannabigerol, CBG is the “mother” of both THC and CBD. The only bad thing about this cannabinoid is that it’s incredibly scarce. Making a CBG tincture often takes 10-times as many hemp flowers versus CBD.
To help supply customers with affordable CBG, Organic CBD Nugs’s farmers recently bred a unique CBG-rich strain called CBG Jack Frost. Items like these help CBD distributors dip their toes into alternative cannabinoids without spending a ton on costly extracts.
You could find out more about the exciting potential of CBG in this previous blog post. We’d also encourage those interested in alt hemp cannabinoids to look into our delta-8 THC vapes and hemp flowers. For those who don’t know what delta-8 THC is, please read this extensive blog entry.
Trust Organic CBD Nugs With Your Wholesale Hemp Needs
Although the CBD market is maturing, it still has a “Wild West” atmosphere. Until the FDA regulates the hemp market, CBD distributors must carefully vet their chosen wholesaler.
Third-party lab results aren’t optional. Without these COAs, there’s no way to know whether the CBD you’re getting is gold or junk. Also, it’s illegal in many states to sell CBD without accurate lab results that show there’s ≤ 0.3 percent delta-9 THC.
Organic CBD Nugs takes great pride in selling CBD, CBG, and delta-8 THC products that meet the highest quality standards. But don’t take our word for it. We publish all of our latest lab results on our website.
To learn more about our generous wholesale program, we’d encourage you to submit an e-application on this webpage. You could also email Organic CBD Nugs at firstname.lastname@example.org or call us at (844) 500-9888.