How to Market Your CBD Business
Market your CBD business: Our co-founder, Todd Smith, is considered an influencer and expert in the field of CBD and CBD business and would like to share what he thinks is the number one challenge that most new entrepreneurs have when starting their own CBD business: How are they going to market their CBD products?
There’s a lot of different options, and let’s just start with this — right now, the entire market is wide open. It’s not about finding a niche within the CBD industry. It’s estimated to be a $22 billion industry by 2022; just dive right in and don’t worry about specializing to just one group.
We are currently at the beginning of this CBD movement, a fact that you might be trying to take advantage of with this very advice.
The industry is filling up fast, though. Joy Organics offers Wholesale and Private Label Partnership Programs and has helped launch 80 new private label CBD and hemp brands. We’re working with a lot of people who are starting their own business and we also have a lot of partners that we set up months ago. Plus, we now offer a line of USDA certified organic tinctures and salves, giving us (and our partners) a new edge in the market.
As Todd watches both new and returning partners throughout the months, he’s able to see patterns for what makes a successful brand and what makes a newbie so obvious.
Start Out with a Physical Location
Number one is that anyone who has a location where they can physically sell the product always has the highest reorder rate, which means their rate of success if almost guaranteed. Whether it’s a doctor’s office, a pain clinic, an addiction clinic, a pharmacy, a pet store, a head shop or whatever type of business out there that can sell a CBD product, physical locations win over customers a lot more easily than businesses solely selling online.
The fact that you have a physical location is not the reason people buy your product, though — it’s because people want to talk to somebody.
At our Fort Collins location, for example, you can ask almost all the customers who walk through the doors how they discovered Joy Organics, and they’ll likely all tell you they discovered us online.
Even though they discovered us through their website, where they could have easily purchased the product and had it shipped straight to their door with free shipping, they would rather fight through traffic, struggle to find parking, cruise on into the store and speak with someone face to face because that’s what sells a product. Human interaction and flawless friendly service are what takes your business from average to absolutely extraordinary.
Any place where people can go and learn about CBD products are far out-selling the CBD companies that are solely setting up eCommerce websites on the subject.
Capitalize on Your Strengths
Todd also advises you to look at what you’re particularly good at. Look at what your strengths are — what makes you unique and different. What gifts do you have? Then, how can you most effectively build your brand of CBD products? How can you most effectively market these? What are your options?
One of the first suggestions is to make a list of 20 different ways that you can market your own brand of CBD products.
You can even start with the simple stuff. One, make a website. Two, make the social media pages you think would be most relevant for your brand’s audience. Three, get social media influencers interested in your product.
While the first 10, maybe 15, will be easy to come up with, you’ll start to need more complex ideas for how to market in order to get to a list of 20. Eventually you’ll be coming up with more wild ideas, like starting some educational sessions at the retirement centers around your home. Once you write those ideas down — and actually act on them — you’ll soon be building a big business with an optimized target audience who already knows the product is effective.
Whatever you can do to get face to face with a potential consumer, the more likely you are to get consistent, regular sales. The best way to market your CBD business in this growing industry is to provide a product faster than free shipping can. Get personal with your customers, offer them a physical location they can learn and purchase the product, and watch your brand expand further than you could’ve imagined.
Make a Smart Choice About What Products You Sell
The next question to ask is: Are your better off launching your business with your own line of branded products, or should you use an existing brand, such as Joy Organics?
You don’t even have to rely on selling the products at an actual store. To give you an idea of just how easily you can see success, here’s a story from one of Joy Organics’ partners. She has just a kiosk in a small mall in Minnesota where she sells CBD products. She pays about $400 a month for this kiosk, but averages about $1,000 in sales every day out of that kiosk.
She started off just selling the Joy Organics brand as she was on a budget. In fact, she had only about $800 to her name. She went out, took the risk and bought a kiosk at a little mall. She bought a small amount of Joy Organics’ products and they started selling, so she slowly upped her inventory.
Then, she started transitioning, one product at a time, into her own brand. Now, most of the products she’s selling are under her own brand name, though she still has some Joy Organics products that her brand hasn’t yet branched into yet.
Grow a Face-to-Face Business Before an Online Business
There are a lot of ways you can sell CBD and a lot of ways you can benefit from the quickly growing market, but the fastest and easiest way is to meet with people face to face. If you’re unfamiliar with eCommerce or internet marketing, Todd even recommends not starting with a website.
This is because, if you start with a website, you must understand that no one is going to find it at first. Google bases its search results off an algorithm with thousands or millions of search results for any given keyword. It takes time and targeted, optimized content to rank on the first page of Google, where anyone would even be likely to see you. Likewise, the very age of the domain (your website name) could inhibit your search results. Google is not likely to rank you highly if your website is completely new.
If you have any local search result possibilities, that may be a potential way to get online customers, but you’re still limiting the chances greatly. Trying to compete on a national level is not a likely possibility starting out. Building an audience through a physical location and then branching out into an online community with a loyal audience helping you out along the way is recommended.
Once you’ve built a face-to-face audience through your physical location, you can build a social media community through Instagram, Facebook, Twitter and other social media platforms. By utilizing the power of digital marketing, you can have your community market your CBD business with little work on your part.
In conclusion, physical locations and face-to-face communication is the way to go for a successful CBD business. If you want more advice on how to market your CBD business or anything else related to getting started, reach out to Joy Organics for advice and potential partnership using our products.
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Todd Smith is Joy Organics Chief Partnerships Officer. With over three decades’ experience in the wellness and nutritional industry, Todd co-founded Joy Organics and works diligently to support small CBD businesses across the country.