Start a CBD Oil Business Online
Learn everything you need to know about starting a CBD business online. We will cover all of the essential information and some of the different ways you can get involved in the CBD industry – right from the comfort of home! Learn about the daily activities of a CBD entrepreneur, the “not so typical” target market, potential for growth, how much capital to get your business going, legal considerations, and so much more! YOU can have a CBD oil business online, FAST!
A CBD business can be an online business or it can be a brick and mortar retail store. There a multitude of different types of CBD products which include tinctures, ( CBD OIL ) edibles, vape liquids, capsules, topical pain creams, pet products, equine products and even CBD skin care and bath bombs!
What type of person is best suited for a CBD business?
Having a genuine compassion for people that need natural healing is a good start. An understanding of cannabinoids and the endocannabinoid system would also be beneficial. You need to know how CBD can help people with different health issues. A self motivated individual with some business acumen (marketing skills, sales skills, administration) could excel in this industry.
What is an average day like in the cbd oil business?
If you are doing this business strictly online, your day will be filled with pushing traffic to your website and hopefully getting loads of orders in! You will want to reach out to your clients and thank them for their order. Building relationships is a great way to guarantee repeat orders! If you opt for a brick and mortal retail store, then you will be ordering products, stocking shelves and providing customer service face to face.
Who is the CBD target market?
Every man, woman, child, pet, horse and all mammals for that matter! We all have an Endocannabinoid system. CBD has many uses. Hemp-derived CBD has no psychoactive effect, ie: you will not get high unlike marijuana products containing high levels of THC.
How will my CBD business create an income?
There are many CBD companies with affiliate programs that pay a certain percentage for your sales. 10 to 40% is common. You can also join a CBD MLM (multi level marketing) and earn from your own sales and from the team you create as well! So in an MLM, you will earn from multiple levels and it can be very lucrative. Affiliate companies will usually let you have your own website to market the CBD products but MLM companies will in most cases only allow you to use the website they provide you with. And of course, if you are a retail location, you will mark up the products you purchase to suit market demand.
Is it too late to start a CBD business?
No! This industry is JUST starting out. CBD is in demand and expected to hit $7 Billion by the year 2020 in the US alone! If you can market and have some sales skills, you may find this to be the “dream job” you have been looking for!
What kind of skills and experience do you need to be successful in the CBD industry?
You must be self-motivated. Being in business for yourself means you are responsible for everything. Having sales, marketing and people skills is essential.. or you will need to pay others to provide you those services. You also should have knowledge of CBD. How it benefits people, pets and animals. You also need to be aware of the stigma associated with anything to do with cannabis. You will need to educate your clientele because most do not realize you do not get high with CBD products. Learn about the different cannabinoids as well as terpenes. Stay on top of the industry by utilizing CBD research sites like Project CBD for example.
What does it cost to start a CBD oil business?
This depends on how you intend to get into the business. If you have the ability to make CBD oil and products yourself, then your product costs will be low. You can get a website created or make one yourself on WIX for example. Web designers range anywhere from 500 to 5000 or more for a good ecommerce site. BUT one problem in the CBD industry is finding a credit card company to be your payment gateway. Paypal, Square and the more common gateways will NOT allow you to use them if you are selling CBD. CBD requires a “high risk” payment gateway and they are not cheap! Which is why most people starting a CBD oil business from home opt to join a CBD MLM or sign up to sell CBD affiliate products.
Affiliate companies and MLM’s provide you with a website. BUT if you are going to sell multiple different affiliate products you will want to create your own site that has all of the products on it. You will simply link your product to your affiliate site and the customers will order through the vendors payment gateway, which eliminates the need for you to have your own payment gateway.
So costs, in a nutshell… Affiliate programs are free to join in most cases. Sign up, get your website and links and you can literally start marketing immediately. MLM companies cost money to join and can be from as low as $89 U.S. You can choose from different packages and find one that suits your budget. Commission is based on which package you order. You can earn a good income if you build a team under you. The mlm fee is only $20 bucks + your package, shipping and tax. There are a few CBD MLM companies now but most are affiliate programs.
What are the proper steps to take to start my CBD oil business?
First of all decide if you are going to have a CBD oil business online or if you are going with a retail outlet. If it’s an online business you can join a CBD MLM, an affiliate program OR buy wholesale CBD to sell online or in a brick and mortar CBD shop. Please note that at this time Amazon and Ebay are not allowing CBD products to be sold on their sites. Some are sneaking their products on by calling them something other than CBD but they will get caught. Hopefully these things change soon as laws are changing rapidly around the world.
Make a Plan
You must have a path to follow to ensure success. Dedicated time is essential. Figure out how long it will take to recoup your initial costs. Who is your target market? How will you market this new venture?
If you are a brick and mortal you have probably already registered for taxes. If you are doing this online, you do need to keep track of your income and pay taxes on that. Set up good accounting right from the start.
Be sure to have a bank account for your business so you can keep track of your earnings properly.
You must record expenses and sources of income. Keep receipts. Enter monthly into a program like Quick Tax for example. You need to be able to track revenue and be ready to pay tax on your income.
Permits and licenses
If you are a brick and mortar shop, be sure to check if you can legally sell CBD in your shop. Non compliance can result in hefty fines! If working online only, the company you work for will ship direct and be licensed to do so.
Definitely important if you are a brick and mortar shop. Business insurance covers many things. Talk to a reputable agent to find out what kind of coverage you should have in place. Working from home and not have customers at your door, you will not require special insurance.
You want to stand out from the competition whether it’s an affiliate program, MLM or brick and mortar. Pick a name for your business and make sure you look and act professional at all times. If you intend to become an MLM leader, you need to look and act like a leader. This credibility will take time to build but it is worth it.
Set Up your Online Presence
Start a Facebook Business Page. Open a YouTube account, Twitter and Instagram. These are the top 4 social media accounts you need. Be sure to market your website link, whether it is your affiliate link or your own personal website. If you are having a website build, there are so many things you need to consider in order to rank on Google. There is loads of help with SEO available but you will have to pay for these services… and they are worth every penny! CBD is a highly competitive market place.
Tips to Help You Jump Start Your CBD Oil Business
It’s important to understand this fast changing industry. In many places the legalities of CBD are a “gray area”. First of all buy CBD that is hemp-derived and not made from Cannabis. CBD from hemp has extremely low levels of THC, under the federal limit levels. CBD from cannabis can have much higher levels of THC and this is where you can get in trouble. These products are still sold through licensed dispensaries in this USA. Canada recently legalized marijuana,THC but oddly not CBD! Be sure you know your local laws. It would be very disheartening to set up a cbd oil business only to get a whopping big fine and shut down.
DEA Removes CBD as Schedule I Drug
The DEA recently removed CBD as a schedule one drug in the USA. So that is progress. Most places in the US can sell hemp-derived CBD products without issue. But do check! If you are a brick and mortar you need to know your local laws. If you are just running an affiliate or MLM type of business, that onus falls on the companies as they are shipping to the customers, not you.
Be honest in regards to CBD. You cannot make medical claims on your websites or on social media. People can give their testimonials, but be very careful saying CBD cures anything. The FDA can come down hard on businesses that make claims. Have your potential clients google CBD + “health issue”. They will find loads of information and there are tons of CBD research sites.
If you are a representing an MLM or affiliate company, be sure to have their lab reports on hand so you can prove the quality of the products you are selling. There are many cheap, garbage CBD products but there are also some amazing high quality brands.
How to Grow Your Business
How to Advertise Your CBD Oil Business
The CBD industry is a very hot market with many people tossing their hat in the ring. Competition is stiff so you need to execute a bullet proof marketing plan. It gets even harder because Facebook and Google Adwords do not allow PPC for CBD. So you need to find other ways to advertise. You need to create strong content on your website or in your social media. It has to be top notch, researched and informative. Become a source for people and you will start getting traffic. Be an information hub. Think about marketing offline as well. Post card campaigns, newspaper ads, coffee shop rags, tradeshows, farmer markets… you need to find a way to get the word out about your awesome new business and products.
If you are able to have your own website then you are going to need some SEO guru to help you as the competition for the keywords you want to be found by is T O U G H! But it is possible! Go after “long tail keywords“. You need to have some money to invest in marketing your new business whether it’s brick and mortar or through your website and social media. Get creative.
Customer Service is Critical
Be sure to follow up with your customers. Make sure they are using the products properly and finding relief. Then ask for reviews on your Facebook page and on google! Once you start to get feedback, you will know which products are really working and can sound more authoritative in you recommendations. Continue to build a rapport with your customers. Be sure to start a newsletter sign up so you can keep in touch with everyone on a regular basis.
One of the most lucrative ways to earn income in the CBD industry is when you join a CBD MLM. When you build a team underneath you, you start to earn from their efforts as well. You can work together and attend events, tradeshows and also collaborate on marketing together. Six and seven digit incomes is not unheard of but it takes a lot of effort. Find a reputable CBD MLM company with a proven track record. The most popular one at this time is definitely HempWorx.
There is lots of room yet to start a CBD Oil Business! Do not miss out on this opportunity. It’s still very new and there are so many side businesses starting as well. Many will start CBD oil business “accessory” businesses. That’s another opportunity waiting to be capitalized on. We hope this gives you some help and hope that you too can be a successful CBD entrepreneur. But don’t wait. Tick tock… the eary bird gets the big fat juicy CBD worm! Good luck in your ventures!