CBD oil is lately in the news for its ability to offer miraculous recovery to people suffering from chronic diseases. Despite CBD gaining traction, many are still unaware of it – largely because most of us, it appears, are interested in consuming CBD, but not so much in making money with it.
This can change and CBD’s business potential can be a catalyst to the much desired change.
The misbelief that CBD production is illegal is only partially true. States where marijuana consumption is prohibited have no law that legalizes CBD consumption or its production.
But cannabis is legal in way too many states. Take a look at the infographic below:
If you know how to count, there are more than 20 states where you can consume marijuana. Residents of these states can dig into CBD oil production and pad their pockets.
Below I explain how:
Become a wholesaler
If you think there’s no such thing as a CBD wholesaler, you think wrong. I agree that the term “wholesaler” is not widely used, and distributor is a more common and familiar expression, but the two mean the same.
Now in order to profit off of CBD distributorship, you first need to
Study the industry
The CBD industry is more prolific than you think. Plenty of distributors are there in the USA. If you can hook them up as partner, profit will begin to roll in in next to no time. Study how the industry functions, what demographics of people are the buyers, what percentage of people use CBD for healing purpose and what percentage for other purposes, who are the major players, and stuff like that.
Partnership or standalone
Once the market is thoroughly studied, next you got to decide whether you are resourceful enough to go on your own or need a partner. Resources, in this context, are the money you are going to invest, contacts, knowledge in CBD oil production, and very importantly, marketing.
Benefits of proprietorship ventures
The biggest benefit of proprietor distributorship is you don’t have to share profit with anybody else. That’s elementary, but is there anything beyond that? And anything that touch bases the exclusivity of CBD oil as a consumer product?
Yes. Fortunately, there is. When you are a CBD distributor operating entirely on your own, you get to know a lot of end-consumers who buy the oil from you. The majority of those consumers will be patients. Create a registry of them where their names, contact details, name of the ailment they are suffering from and the dates they are purchasing the oil from you are all mentioned.
Then after an interval, collect feedback from them. Include the feedback in the registry. Sell the registry to diagnostic centers and medicine companies. Create a separate registry with positive feedback and use it to broaden your marketing orbit. Of course, seek consent from the patients before doing all these.
Now, having a partner can make it difficult for you to use customer data as a sales or marketing leverage. He may have another “great” idea, which you may think is trash. Besides that, closing down a partnership business, especially distributorship, could be hard. As cannabis belongs in the grey area of legality, you might – on a brief notice – have to shut down your operation. But your partner might refuse to close down and keep chasing the proverbial carrot.
CBD wholesaler partnership benefits
Partnership may have few cons, but pros can outweigh them anytime. It is starting with custom labeling. Partnering with a reputed distributor can make it easy for you to introduce your own brand of CBD oil. That said, not all distributors allow for custom private labeling. So pick wisely.
Next is quality assurance. We know how important it is for a product-based business. Partnering with a CBD distributor – preferably a large one – enables you to lab test your product as large distributors have multiple laboratories.
Having a partner can ease off warehousing, packaging and shipment. Handling all these alone is one heck of a job.
I am ready…
Congratulations! You’ve studies the market well, found a partner/taken everything on your shoulders, and now you are all set to move ahead with the plan.
Good luck. Just remember the protips listed below and you and your business will be safe:
- Never sign any agreement without a nod from your lawyer.
- The business attorney you hire must be paid from your company’s account, not from your personal account.
- Keep yourself updated with the latest cannabis consumption laws of your state.
- For international orders, check if CBD oil is legal in the country the buyer is from. Decline the order if it is not.
Follow all these protips like general rules of thumb and your business will be far, far away from legal hassles.
CBD’s business potential is tremendous. One article may not be enough to cover all of it. But if you are a newbie, thinking of testing the water, this article can be your guide.