The US market projects to be worth $24.4 Billion by 2024. The expected growth has aspiring entrepreneurs in different industries diverting their interests in starting a money-making venture. The CBD industry is one of those ventures that are promising.
Having spent the past few years developing my CBD business with the help of my brother, I can confidently say that it is something for the faint-hearted. Challenges in this line of business have increased over the years; nevertheless, opportunities are always available for those that wish to go the extra mile, putting in the hard work.
You are on the right track if your CBD business is already up and running. Below are seven tips we got during a discussion with Joy Organics that I believe will prove helpful in growing your company in 2021 and into the future.
1. Ensure Your Product Is Top Quality
The product you sell takes precedence when it comes to starting and growing your CBD company. Unscrupulous individuals and entities selling substandard products have left many customers with a bad taste in their mouths when dealing with CBD vendors. It is a situation that has seen more consumers become more attentive to the products they are purchasing. Joy Organics wholesale CBD products are up there with the best and many bases their business around them.
Today’s market is crowded, and stand out requires robust branding coupled with quality product packaging and solid lab report stating why your products are the best and the ingredients you use. Moreover, it is also best to acquaint yourself with what CBD is about to ensure you grasp what you are talking about (selling). It is a strategy that should be founded on a passion for promoting natural health and wellness.
The CBD industry is not the ideal bandwagon to jump on if you are in it for quick cash. We all start a business because we are chasing after money. But the money will come our way if we position ourselves to be discovered by potential customers searching for solutions. Therefore, you must be sure that you have an answer to their health questions.
It is best to educate yourself if you have no expertise in this field lest you consider trying your hand in something different to make money. In short, prove you are an expert. You know what you are selling (talking about) and not blowing hot air.
2. Focus On Organic Growth
Paid advertising channels might work for some brands and fail for others. We are familiar with how unreliable it can be when it comes to advertising CBD products. Platforms like Google Ads and Facebook are yet to allow CBD promotional content despite CBD being legal in Europe; thus, acquiring customers is challenging.
Focusing on organic growth with SEO while leveraging social media marketing is the best way to growing your CBD business if you are eyeing long-term growth instead of short-term profit.
Building a quality website for your business might be a process that will be slower in getting the expected results, but you will be providing your clients with high-value content. It would be best if you also focused on amping your social media presence. The two things will help generate consistent traffic levels to your site.
It is a process that takes time and not worth trying to take shortcuts. I am familiar with sites that come up with a bang and tanked a couple of years later because of paying for hacks and focusing on quick gains, which led to getting penalized and some being suspended.
Therefore, play the long game and be committed to doing things right.
3. Develop Relationships With Influencers And Affiliates
With the limited access to paid acquisition channels, you will be forced to make do with the few that you can find and be more creative with how you take advantage of them.
Affiliate programs and influence marketing are two of the most prominent channels to consider for growing and advertising your CBD business. Influencers willing to work with CBD brands are hard to find, particularly with the stigma attached to the cannabis products and industry. However, not all are against it; we have worked with influential individuals in the health and fitness industry.
But do not be duped into paying high premiums to work with influencers with lots of followers because you are less likely to get your money’s worth.
We know that micro-influencers with fewer followers have outdone those with a far higher following. The secret to working with an influencer that can deliver the expected results is finding one whose goals align with your business, having followers interested in your product.
The influencers and affiliate programs should generate organic traffic to your online store. The beauty of it is that you will pay a referral fee for every purchase made; thus, this is a cost-effective strategy worth considering.
4. Leverage Automation To Nurture Potential Clients
When your website starts to draw in more traffic that results in increased sales, you should have a mailing list for your visitors and customers. You can begin with abandoned cart emails to build your email marketing strategy, which has the potential to have an immediate impact.
Also, pay attention to your content and the offers you avail to your loyal customers and first-time visitors to convince them to sign up to your mailing list. For instance, we have a PDF guide with attached email automation that we provide our visitors, which informs them about our vision/mission, products, and what makes us stand out from the rest in the market.
Our emails have a significantly high open rate, at above 80%, and we leverage it to build a relationship with our clients even before they buy our product.
5. Use Subscriptions To Grow Recurrent Revenue
With your CBD business operating as an e-commerce venture, the revenue you accrue can be unpredictable. Everything might point towards things headed in the right direction, but some months of income slumps are not uncommon.
You can mitigate the income drops by introducing subscriptions, which potentially can result in a steady increase in recurring revenue. Having a consistent incoming revenue each month means your business will make more money that can be reinvested into growing the company.
6. Invest In Growth
Starting a business and growing it is an investment, a process that takes time.
Not so long ago, scammers were creating sites that were selling inferior products or none at all, and many of these websites appeared overnight. They would make a fortune before disappearing off the map. Thankfully, the CBD industry has grown and measures to mitigate scammers, dramatically changing the playing field.
Before this, we were competing with scammers for the same customers. Today, the competition is established brands and household names like Boots and Holland & Barrett that market their range of CBD products.
Previously, a team of two people or even an individual could throw up a website with a competitive edge and with others in the market. Today, competition is stiff, and it has forced many, including us, to work with marketing agencies, development teams, website designers, professional product photographers, and other specialists to ensure we stay competitive.
It is an investment that paid off and one you must consider if you want to etch your place in this competitive market space.
7. Adhere To The Regulations
Some individuals who are thinking of trying their hand in the CBD business might be disheartened because the industry is no longer a get-rich-quick platform. Success is founded on embracing the regulations in place that brought about some sanity to the cannabis industry.
You need to invest in lab research and get reports verifying your product quality. It would be best if you also considered joining a trade association. The two are essential steps worth taking if you want to prove you are serious about the business and are keen on growing it over the long term.
More and more rules are being put in place that makes it harder for unscrupulous individuals to fool people. They aim at legitimizing the marijuana industry while focusing on helping the CBD business to thrive.
The Bottom Line
Starting and growing a CBD company in 2021 is still not a walk in the park, but things are less challenging than before.
Nevertheless, you must have the right attitude to ensure you start and thrive. It is not an enterprise that you can join hoping to make a quick buck.
Entry barriers might have increased, and the initial “Green Rush” fizzled out; room for small brands to have a foothold in the CBD market is there, offering an opportunity to create a business that can withstand the test of time.