In the world of cannabis and its derivatives, the last few years have seen significant improvements in terms of legality and sales. With the pharmaceutical industry facing a substantial decline in recent times, people are investing less than they used to. That’s because of the innate nature of cannabis. However, compounds like CBD, which is a product of industrial hemp, does not cause of any intoxicating side effects when administered in the recommended amount of dosage.
However, in the case of other cannabis compounds and concentrates like live resin, one needs to be attentive and informed.
If you are planning on starting a cannabis business in 2020, there are certain things you need to streamline and sideline from the beginning. From understanding the selling legality to promoting it on social media or other digital platforms, you must take note of everything. The cannabis culture has been quite proactive for years, but you should not forget the rich history it brings to the table. As a business owner, you need to be aware of specific facts like a particular compound’s traditional and recreational history, point of interest, and people who would invest in your products.
In the year 2019, CBD products made it to the market and came out with an increasing number of sales. This implies people’s inclination towards alternative medicines. But, with the nature of medicinal products comes stringent regulations and competition. However, there are vital tips that you can go utilize to determine the future of your cannabis business. Not only will these tips help you understand each aspect, but they will help you build a prosperous cannabis venture.
1. Differentiate your brand.
A business’s individuality and competitiveness are two of the most critical factors that can determine your future amid the market. Since there are several competitors available already, you can start by conveying how different your product’s brand is. Market leaders like Charlotte’s Web and CV Sciences in the field of CBD trade publicly, but still, the entire area remains fragmented with small-scale shops and businesses.
To succeed in the market amongst healthy competition, the picture that you portray to potential buyers is crucial to get right. Since you can’t make medical claims about the products, start by introducing them as health enhancers. The FDA disapproves of medical claims against cannabis products. So, be creative and pitch your products in a way that would make you buy it. But, remember, do not make false claims about your business; this could get you into real legal trouble.
2. Understand the legality.
For several years, cannabis has been deemed illegal by federal and state laws in the United States and several other countries. But that is mostly because of its recreational and mind-altering effects. CBD, which is one of the compounds of the cannabis Sativa plant, has also faced similar legal restrictions in the past. From traveling with it to selling it in various parts of the United States, the rules laid by the FDA restricted its movement. But with the introduction of the Farm Bill in the year 2018, CBD products gained significant ground in the United States. While this hemp-derived product has been said to alleviate pain, anxiety, depression, and many other health-related problems, CBD products has gained a considerable amount of popularity.
If you own a CBD business, know that the legal percentage of THC in a CBD product cannot be more than 0.3%. Moreover, platforms like Google, YouTube, Instagram, and Facebook do not permit the promotion of cannabis products. When you plan on selling such products, make sure that you do not make unfounded assumptions about cannabis to sell them.
3. Utilize influencer marketing.
To make any business thrive, you have to be open to all available avenues for your business and products. Social media marketing and selling your products on several digital platforms have their pros and cons. But, in the cannabis sector, marketing and promoting across social media is not allowed, meaning you can’t place paid advertisements.
However, you can circumvent this problem by working with several influencers on platforms like YouTube, Twitch, and Instagram. You can market your legal CBD oil tinctures and other products through influencer marketing channels in countries such as Canada & some states of the US.
Such influencers have a massive network of followers that span across a wide demographic area. This makes their platforms even more beneficial to your business. So, when you plan on promoting your products through social media platforms, collaborate with a known influencer. With their help, your brand can reach a colossal network of followers all around the world.
Moreover, 17% of companies spend half of their businesses’ total budgets on strategizing influencer marketing. So, when you take a step forward, make sure that you exhibit a quality product along with compelling and engaging content. This would make the impact of your product’s advertising more meaningful and effective.
4. Try new avenues to promote your cannabis business.
Other than social media, offline, and online stores, there are many different avenues as well that can boost your cannabis business. You can start by sending your brand ambassadors to events like Hempcon to promote your products and concepts. Not only will such a process help you in reaching new customers, but it will also provide you with a considerable push.
You can even check out festivals like the ‘Northern Nights’ festival. This festival hosted the cannabis wellness experience last year, which was a huge hit among viewers and visitors. Starting new is never an issue, but building strategies are. As a result, make use of the resources and options available to you. Networking is key in this industry; for example, look for educational podcasts that networking parties. You can introduce various types of products at networking events, from vapes to cannabis seeds.
5. Remain on the right side of regulation.
In recent years, many CBD businesses have received shut down orders and warning letters from United States regulating bodies. So, it is always better to remain on such an organization’s right side, or your business will suffer. The clinical and medical successes of CBD have helped the substance gain a significant amount of popularity on the global circuit. However, there are many other cannabis/CBD products and businesses that sell unapproved and unauthorized products that make unfounded medical claims. The FDA ensures that such companies cannot do business in the future.
The actions of some cannabis companies taint the path for others who in the same industry. While promoting your product, make sure that the marketing does not contain claims of treating, preventing, or curing any medical ailments. Such types of claims can cost you your entire business. Unless you have scientific evidence with already-proved studies and analysis with the products, the Federal Trade Commission will enforce their regulations. So, be cautious and meet all the legal terms to succeed legally.
6. Be creative.
Before the introduction of the Farm Bill, many vendors, businesses, and promoters used to hesitate in promoting cannabis-centric products. But many have moved past this conservative way of strategizing. In the modern age, you can partner with local advertisers and people.
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It is 2020, and the use of cannabis is legal in many states under specific rules and regulations, making it easier for advertisers and owners to connect. One way to be creative with your cannabis eCommerce store is by establishing loyalty programs. Not only would this excite your customers, but it will also help in profoundly spreading awareness about your brand.
7. Utilize content marketing.
Many cannabis companies tend to adapt to strategies that can instantly produce results. However, content marketing is one of the most underrated aspects of marketing that can get the word out of the door more organically. To reach potential customers, you can create blogs that explain the know-how of cannabis and its compounds. Making a virtual guide with the help of designs and infographics will help significantly in conveying the concept of your business. This not just promotes your brand, but also builds trust amongst customers.
After a certain period, your blog will become a go-to option for cannabis-centric readers, wanting regular information out of your business. And, that’s where the loyalty and trust factors come in. As a result, your blog (and business) can become a respected authority in the industry.
From understanding the market and legalities to strategizing influencer plans and exploring further avenues to sell, growing a cannabis business has a lot. It is essential to educate a buyer with medically approved studies and research to sell cannabis correctly. As an owner, you can spend money anytime on basic outreach efforts, but being creative requires extensive research and strategizing. So, make sure that you adhere to every state’s regulatory schemes and deliver the right message before selling your product. Not only will you end up creating an enormous amount of awareness, but it will also lead you down the path of a successful cannabis business.