THC and CBD are hardly the only cannabinoids that Cannabis sativa expresses. All told, this plant produces more than 100 cannabinoids, but most of them are analogs or copies of a few main compounds including cannabigerol (CBG) , cannabinol (CBN), and cannabichromene (CBC). Each of these “minor cannabinoids” are each expressed in most cannabis strains in such small quantities that many entrepreneurs put them aside in their calculations, but all that is about to change.
Certain approaches to distributing CBD, however, have proven more effective over the last few years than others, and you can save yourself a significant portion of your time and capital investments by learning from the mistakes of those who came before you. In this guide, we’ll cover some of the key data supporting the continued viability and low barrier to entry of the CBD industry and thoroughly explain why becoming a Secret Nature CBD distributor is the best way to capitalize on everything that emerging hemp markets have to offer.
Becoming a CBD wholesale distributor: 7 easy steps
The euphoric buzz surrounding the hemp market has largely dissipated in the last few years as the CBD industry’s vibe has come to more closely reflect the mild, non-intoxicating effects this cannabinoid provides. With increased competition and the legitimization brought about by legislation like the 2018 Farm Bill , bad actors have largely been competed out of the CBD market, and larger companies have begun cementing their footholds.
Why should you sell CBD?
First, determine both the initial and ongoing costs of your enterprise. While marketing CBD products online costs less than operating a brick-and-mortar store, acquiring customers, managing inventory, and handling fulfillment aren’t free. Even the smallest CBD distribution businesses need at least $5,000 in startup capital and make sure to keep your monthly cost estimates realistic to avoid unexpected pitfalls.
[If you're looking for more details on how to start a business and all the steps you need to take, see our step-by-step guide to get started.]
CBD is found in both cannabis and hemp plants. CBD oil can be extracted from either plant and used to create CBD oil products. However, there is a key difference between hemp CBD oil and CBD products derived from cannabis: THC.
The key to gaining a competitive advantage with staying power in the CBD industry is to develop a high-quality product that will withstand the coming scrutiny of both regulators and educated consumers. If you want to differentiate yourself from other CBD businesses, it's key to provide third-party lab testing results to validate the quality of your product, Slovik said.
How to start a CBD business
Hemp and cannabis are closely related; in fact, industrial hemp is actually Cannabis sativa L. The difference in name is mostly a function of a legal definition, which sets the threshold for THC content. The flowers of a hemp plant contain little to no THC, while the flowers of a cannabis plant (commonly referred to as marijuana) contain much higher levels of THC.
To successfully advertise and sell your CBD products, you will have to be creative. Establishing your own e-commerce store or carrying your products in a brick-and-mortar location is a must. Marketing your product with an organic search strategy and customer loyalty programs is always safer than engaging in paid advertising. And, of course, every market is a bit different, so do your research and understand your local and state laws.
What is CBD?
Cory Slovik, owner of Core Roots CBD, started his company after experiencing firsthand what he said were the healing properties of the cannabinoid.
Understanding your legal obligations and playing it safe is key in a highly scrutinized industry. While CBD businesses everywhere await clearer regulatory guidance, it is important not to craft your marketing strategy around the supposed benefits of CBD. It's also important to stay apprised of new developments as the FDA moves forward on crafting new regulations.
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.
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.
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.
Branch Out From “Boring Old” CBD Oil
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.
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 .
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.
Who Are You Selling CBD To? — Establish A Clear Business Model
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.”
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.