The cannabis industry is growing rapidly, and now is a great time to start a cannabis business. Worldwide, there are about 147 million cannabis consumers, which is more than the number of people who use cocaine or opiates.
In the United States, nearly six in ten people support the legalization of cannabis for both recreational and medicinal use. And the market for legal cannabis is expected to grow significantly in the coming years.
For example, global cannabis sales grew by 38% in 2020, and the market is expected to reach $23 billion in the United States by 2025.
But how do you start and promote an online cannabis business? What are the best cannabis marketing strategies to reach your target audience and increase your sales? In this article, we will discuss the different types of cannabis businesses that you can start online, as well as some tips on how to market your online cannabis business effectively.
Cannabis is used for a variety of purposes, both medicinal and recreational. Medically, it can be used to reduce nausea, improve appetite, and treat muscle spasms and chronic pain.
Recreationally, it can be used to relax, feel euphoric, and enhance sensory perception. Given the popularity of cannabis, it is a good business opportunity to open an online cannabis store or a physical pot shop.
The scope of a cannabis business refers to the range of activities that the business engages in. This can vary depending on the type of business, but some common activities include:
- Cultivation: Growing cannabis plants.
- Processing: Turning cannabis plants into products, such as flowers, concentrates, and edibles.
- Manufacturing: Making cannabis-infused products, such as topicals, tinctures, and beverages.
- Dispensing: Selling cannabis products to consumers.
- Delivery: Delivering cannabis products to consumers.
- Testing: Testing cannabis products for potency and contaminants.
- Research: Conduct research on the medicinal and recreational benefits of cannabis.
The scope of a cannabis business is determined by its licenses, geographic area, and target market. In the US, licenses for cultivation, processing, manufacturing, dispensing, and delivery limit the business’s activities. In some jurisdictions, commercial cannabis zones are designated, and businesses may focus on both medical and recreational markets.
In this article, we will discuss the different types of cannabis businesses that you can start, as well as some tips on how to promote your online cannabis business online.
Which cannabis businesses can you start online?
According to Stuart Titus, the president and CEO of industrial hemp company Medical Cannabis Inc, there are many opportunities for businesses that cater to medical and recreational cannabis use, support industries, and infused products.
Let’s look at the two main methods that an online cannabis business might generate income.
- Start Your Own webshop to sell CBD/Cannabis products
We will look at the cannabis goods you can sell in this area, as well as how to set up your online cannabis store.
Types of cannabis products
To open a cannabis web store, you need to understand the different types of cannabis products that are available. This includes knowing the different uses and side effects of each product, as well as the legal status of cannabis in your jurisdiction.
Some of the most common cannabis products include:
- Cannabis Buds/Flowers: The most common type of cannabis is flowers. They can be smoked with a pipe or rolled in a joint. The cannabis flower is commonly available in loose flowers and pre-rolls.
- Dried cannabis: By drying and curing cannabis buds, the flowers become safe to consume. Smoking cannabis that has not been properly dried and cured may induce throat pain and chronic lung difficulties.
- Cannabis softgels and capsules: One of the most popular ways to consume CBD is through capsules and softgels. They aid in the relief of pain, the regulation of sleep, the treatment of seizures or aberrant behavior, inflammation, and other functions.
- Cannabis topicals and skin care: Cannabis is also well-known for its skincare properties. “Cannabidiol offers some serious antioxidant and anti-inflammatory benefits that can be beneficial in treating skin concerns like inflammation, dryness, and free radical damage,” explains Ildi Pekar, an NYC-based aesthetician and creator of her own beauty facility.
- Cannabis oil and vaporizers: Cannabis oil and vaporizers are worthwhile investments. While cannabis oil is used to treat pain, inflammation, anxiety, depression, and epilepsy, vaporizers are one of the most effective ways to consume cannabidiol. They are used to inhale both cannabis and cannabis oil.
- Hemp-derived CBD products are extracted from industrial hemp plants, which are primarily grown for their seeds and fibre. Selling these items can also help you earn money in your cannabis business. The hemp-derived segment market for cannabidiol (CBD) oil is expected to increase at a CAGR of 41.5% from $516.3 million in 2020 to $2.9 billion by 2025.
Setting up a cannabis webshop
Once you have decided what types of cannabis products you want to sell, you need to set up a webshop. This involves choosing a platform, registering a domain name, and setting up payment processing. You will also need to obtain the necessary licenses and permits from your local government.
Additionally, To comply with cannabis sales regulations, use online age verification software on your website. (Cannabis is only legal for adult consumption.)
Setting up a cannabis web shop can be a complex process, but it is essential if you want to sell cannabis products online. By carefully following the steps involved, you can create a successful web shop that will help you reach your target market.
- Start a cannabis-focused affiliate blog
Affiliate marketing is a popular way to launch an online cannabis business. In affiliate marketing, you promote other people’s products or services on your website or blog, and you earn a commission for every sale that you generate.
To get started with affiliate marketing for cannabis products, you will need to:
- Choose a niche. What kind of cannabis products are you interested in promoting? Do you want to focus on CBD products, medical cannabis, or recreational cannabis? Once you have chosen a niche, you can start looking for affiliate programs that offer products in that niche.
- Create high-quality content. Your blog posts should be informative and engaging, and they should highlight the benefits of the products that you are promoting. You should also use high-quality photos to illustrate your points. Start earning commissions by linking cannabis goods from affiliate networks in your blog posts.
- Promote your blog posts. Once you have created some high-quality content, you need to promote your blog posts so that people can find them. You can promote your blog posts on social media, in email newsletters, and on other websites.
If you do these things, you can start earning commissions from affiliate marketing for cannabis products.
Is it legal to sell cannabis products?
Cannabis is becoming legal in a number of states. According to a recent Gallup poll, 68% of Americans approve of cannabis legalization.
“In strict medical terms, cannabis is far safer than many foods we commonly consume,” argues Francis Young, former Chief Administrative Law Judge at the US Drug Enforcement Administration (DEA). Eating ten raw potatoes, for example, can cause a hazardous response. In comparison, eating enough cannabis to cause death is physiologically impossible.”
The legality of medical and recreational cannabis is determined by the country, as well as its distribution and cultivation. In certain nations, both medical and recreational cannabis are permitted, and in others, only medical cannabis is legal.
Recreational cannabis for sale and supply is allowed in 15 states, two territories, and the District of Columbia, but it is banned federally. Cannabis sales are now completely legal in Canada and Uruguay. Only the United States, Canada, and Uruguay have legalized recreational cannabis sales.
Many countries, including Australia, Canada, Germany, the United States, and Switzerland, have authorized medical cannabis.
Before you start an online cannabis business, make sure you understand the CBD sales restrictions in your country and state.
How to Market Your Cannabis Business Online?
According to SEO Design Chicago, a cannabis-focused SEO business, people selling cannabis online should develop a marketing strategy that incorporates SEO, social media, influencer marketing, and PPC ads. Make the mistake of attempting to do all of your marketing on your own. Check out various freelancing job boards to discover some specialists to assist you.
Let us go over each of these in greater depth below.
SEO for cannabis businesses
SEO, or search engine optimization, is a powerful tool that can help cannabis businesses attract more customers and grow their businesses online. Here are some ways that cannabis or marijuana businesses can benefit from SEO:
- Keyword research
By using keyword research tools, cannabis businesses can find the keywords that people are using to search for cannabis products and services. This information can then be used to create content that is optimized for those keywords, which will help businesses rank higher in search results.
- Mobile Optimization
More and more people are using their smartphones to search for information online. This means that it is essential for cannabis businesses to have a mobile-friendly website. A mobile-friendly website will make it easier for people to find and use your website on their phones, which will lead to more traffic and sales. According to Statista, there are over 3 billion smartphone users worldwide today, and this number is expected to grow by several hundred million in the next few years.
This means that a large percentage of your potential customers are using their phones to search for and browse websites. If your website is not optimized for mobile, these users will not be able to easily view your content or make a purchase.
- Video content
Video content is becoming increasingly popular, and it can be a great way to boost your SEO rankings and engagement. According to Hubspot, 54% of consumers want to see more video content. This means that by creating and embedding videos on your website, you can attract more visitors and keep them engaged.
Blogging is another great way to attract visitors to your website and drive traffic to your dispensary. cannabis consumers have a number of questions about the uses and side effects of cannabis, and by writing relevant CBD-related blog content, you can answer these questions and provide valuable information to your target audience.
- Submit your business to Online Business Directory
A popular method of selling cannabis online is to create an online business listing. Online business directories show your dispensary’s information, such as its name, address, contact information, and the services and goods it provides.
- Pay-per-click ads on Google
We know that medical and recreational cannabis usage is becoming legal, particularly in the United States and Canada. Nonetheless, Google maintains tight PPC limits on cannabis-related products. Just make sure to remove keywords such as “hemp” and “cannabidiol” from landing pages, construct an alternative page, and incorporate calls to action. Remember that Google may remove advertisements at any time, so promote your cannabis business using a variety of methods.
Social Media Cannabis Marketing Strategies for Cannabis blog and Webshops
One of the most effective ways to promote your cannabis business is through social media. However, social media platforms, like Google, have their own cannabis policies and limits.
- Social Platforms and Their Policies
Instagram does not allow cannabis sellers to advertise or sell cannabis, but they can promote their products by providing the website link in their business account bio.
However, cannabis businesses can build an audience of cannabis lovers through organic Instagram followings and engagement pods. While Facebook prohibits retailers and manufacturers from selling cannabis products, sellers can post photos, educational content, and health-related statistics to build brand awareness.
- Cannabis Social Media Networks
Due to restrictions on social media platforms, dedicated business social networks are available for selling and promoting cannabis. These networks increase brand awareness, connect sellers, provide market statistics, and engage users, allowing for faster and legal customer growth. Massroots and Weldable are the two popular platforms.
- Youtube Sponsorships
YouTube content artists advertise your products and services by mentioning your company’s name and the benefits of their products in any area of their video. The cost of such sponsorships is determined by the popularity of the channel and the number of subscribers. Before you invest in such collaborations, make sure to read YouTube’s promotional restrictions for cannabis or marijuana products.
- Influencer Marketing
Influencer marketing is effective for 80% of marketers. CBD influencers will provide you with access to a larger customer audience to promote your cannabis products. Cannabis influencers include Wiz Khalifa, Rachael (CBD Woman), and Steve Deangelo.
We hope that this article has given you enough knowledge to start and advertise your cannabis business. You can also get advice and information from a professional company such as an OTT SEO company or other cannabis consulting organizations.
As cannabis becomes legal in more nations, the value of such a firm may rise. While certain platforms ban the promotion of CBD products, there are other ways to promote your brand while adhering to legal requirements.