The hemp industry has bolted into action after the Hemp Farming Bill passed. Now companies are able to purchase the cannabinoid extract without too much fear of it being taken away. We’re going to show you several ways to make a profit in this booming industry.
How lucrative is the CBD industry?
Becoming a reseller
This is perhaps the easiest way to get started in the business. By creating a company and purchasing the products from a wholesale vendor, you’ll have the ability to make profits by marking up the products you sell.
What’s your advertising strategy?
A couple popular advertising channels in this industry are Youtube and Instagram. Creating a brand presence by throwing giveaways is a great way to gain your initial followers.
What other platforms could you market on?
Reselling branded products
Leverage the brand someone else has created by purchasing a popular brand in bulk quantities. This gives your prospects an assurance that your cannabinoids come from a trusted source, and if they have customer testimonials showing how their CBD has worked in their life, then it’s a great addition to use in your presentations.
Here are 5 benefits of reselling branded products.
- Bypassing the need to create a brand yourself
- Leverage the credibility from the brand you choose.
- No need to formulate your own products
- Certificate of analysis and testing has already been taken care of.
- State Level Hemp Regulations are taken care of.
How to get followers?
Now you may be tempted to purchase followers to make your page seem more credible than it naturally is.
We wouldn’t recommend this strategy, because people can see by the engagement and comments that your page is getting, and determine for themselves whether or not your page is legit. So if your purchase followers, please take into account that your brand’s image may be damaged by this tactic.
What benefits could buying followers give you?
If your page is new and lacking the amount of visitors and purchasers you desire, then here are a few tactics you can use to quickly build a following.
Influencers. These people who take many hours out of their day creating content and building a following are doing so in hopes that a brand will come along and sponsor them. Some people will help you throw giveaways and promotions to drive visitors to your page.
When is the last time you’ve hosted a giveaway?
When the visitors land on your page from a promotion, then you’ll already want to have placed high quality content. When a new visitors lands on your profile page, then they’ll quickly decide if it’s a page they want to like or follow. Its our job to provide a reason for them to want to visit our store. Coupons and giveaways are a great way to convert a visitor into a subscriber.
What’s the last coupon you’ve offered to your customers?
A photo sharing (and now a video sharing) platform with millions of daily viewers. Does your team excel at infographic creation? Then this may be the platform which launches your brand into recognition. Some brands reach millions of viewers every month by publishing high quality images which link back to a high quality content.
How much high quality content do you have?
While there are several different types of CBD products to choose from, some products are much more popular than other products. If you purchased gummy candy infused with CBD, or soft gels, tinctures or transdermal patches, then these products will most likely be purchased the quickest.
Making Your Own CBD products
Purchasing the raw ingredients, like a CBD isolate powder, CBD distillate oil, or a water soluble formulation is the first step toward creating your own customized product.
By taking a small amount of isolate or distillate and blending it together in a carrier oil like hempseed oil, or coconut oil, then with a one kilogram investment would result in 2000 tinctures containing 500mg of cannabinoids inside.
How fast could you sell 2000 tinctures?
If you were to purchase 2,000 bottled tinctures from a manufacturer, then it could easily run you $30,000 if each one were $15 each. Then if you re-sold the tinctures at $30 each which is less than a penny per milligram of cannabinoids (and a great deal) then you’d make much more profit if you were to create your own products. A sales volume of $60,000 and a profit of $25,000 from a single kilogram of CBD, bottles and some carrier oil? Would you turn that down?
Now take in mind your customers will want to know information about the facility you’ve bottled your products in. There are 3rd party manufacturing facilities which specialize in the packaging process who have certifications like GMP and FDA that a kitchen laboratory would never have.
Without the farmers growing the industrial hemp, would the CBD industry exist?
There are farmers who are out in the fields every day of the growing season, catering to the crops which started out as a small seed. Our goal is to support farmers who have made the decision to grow with organic farming practices.
We also support the use of natural pesticides, like the use of predatory mites to fend off the hemp-eating infestation. If you know any company who would like to share their story on our website, then we would be happy to share it on our website.
This is a lucrative activity, with a relatively high start-up investment compared with reselling finished CBD products. Farmers grow plants containing enough cannabinoids to make around a kilogram of whole hemp extract.
What’s the going rate of one kilogram of whole hemp extract?
The whole hemp extract contains all of the naturally occurring terpenes, cannabinoids, and phytonutrients in the hemp. Further refinement of the oil could result in the degradation of the nutrients inside of the hemp extract.
How fast is the hemp cigarette demand growing?
Turning hemp biomass into a distillate form is no easy task. Years of study and research have been placed into developing the technology to safely and efficiently turn a plant into a botanical extract. If a hemp farmer wants to turn his plants into an extract, then who does he or she turn to?
Inside of an operating extraction laboratory, you will see people in safety glasses and uniforms, making sure the extraction columns don’t become blocked by plant material.
Which extraction technique provides the best products?
Some say that co2 extraction is the best. Does it matter