How to Start a CBD Business




The CBD market is growing rapidly, with more people trying to learn how to start a CBD business for the first time. There are many misconceptions about this product. Some people wonder if it is safe. Others question if they should use it to improve their lives.

It is perfectly normal to ask questions if you’ve never used or even dabbled in this area. Even people who have been using it for many years don’t take the time to understand the product and its components.

This is crucial, and we are glad you made an effort to learn before you use it.

We will discuss the most important aspects of the product. You can also ask questions about how it works and the risks involved with CBD.

If you’re considering this type of business, we are betting on the fact that you already know about your products. If not, because we know many just want to go for a different niche, we will help you with the basics you should take notes of.

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What is Cannabidiol?

CBD is usually an oil extracted from marijuana or cannabis. Still, it isn’t the usual element used for what most people smoke since several compounds can be extracted from the plant.

The oil or products is made up of cannabidiol. This compound has no psychoactive effects, and it cannot get you high. This answers the most popular myth: Can CBD get you high? Not at all, and that’s mostly because the element is different from the actual smoking product legal in some USA states.

Cannabidiol is available in many forms: sublingually (under your tongue), topically on the skin or hair; ingested orally with foods; inhaled through vaporizing CBD hemp oils; and in capsules.

The main difference between the usual marijuana you know and CBD is the fact that the latter is legal due to the levels of THC (tetrahydrocannabinol) it contains and a component of the first, so it cannot be considered legal cannabis but rather a variation.

People get confused because cannabis can be classified as either hemp or marijuana. This all depends on how much THC it contains.

What does this mean for CBD? This product is made from legal hemp plants, which farmers try to grow and supply to labs and pharmaceuticals instead of the common plant some can grow in their backyards if it was legal in the first place.

Hemp plants are legal because they do not contain more than 0.3% THC, which means you need to find the right supplier or get your own plants with a specific percentage of THC and start working on your products.

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Why CBD Is So Popular

Most people use marijuana as a way to reduce pain and have more than the simple effect of feeling high. Of course, we don’t discard those that just want it because of pleasure, but CBD in specific won’t help you with that but rather the healthcare part as a pain reliever over 80% of the time.

The medicinal properties of plants can be very beneficial. This is common knowledge. Cannabis is not in the “no use” category. It is actually quite beneficial when it’s used properly and in the right doses.

It doesn’t get you high because of how CBD products are made. The benefits of hemp remain intact, but the product does not contain any drugs.

Because our bodies have two types of cannabinoid receptors, CBD is able to work.

The first is related to the brain, which includes the parts that deal with pain, emotion, and mood, while the second lies in the immune system and can influence inflammation and pain.

CBD is added to oils and other products to stimulate our receptors, which causes them to produce more cannabinoids by themselves. This helps us avoid the common problem with THC addiction or dependence produced by regular marijuana.

Because CBD is stimulating and “treated,” our bodies are able to deal with pain and emotions.

With this in mind, one of the benefits of CBD is the different presentations you can find. Most of them will come in the common and famous oil that is frequently found in general stores around the USA. However, the ones people use tend to depend on their needs.

After all, you will get better results depending on how you approach the use based on the pain.

Because it benefits the whole body, oil is the most popular and can reduce pain and relax your body. Some even use it in diffusers to provide a different smell in their homes, but this is pretty much like smoking at some point.

CBD in ointments or other similar products will only be effective if you are feeling pain in local areas.

The smoking option, which is one of the top recommendations from CBD users, is to get a vape with the favorite oils and just make sure you get the dose without having to consume any type of addicting marijuana.

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Finally, How Can You Get Started?

Reached this point, we can start focusing on the part of your own business.

CBD is a business and niche that requires lots of knowledge but doesn’t duffer too much in other business ideas you might have when it comes to building a business plan and getting the required certifications and licenses.

They change, but the scheme of how you must structure your business remains. With this in mind, where should you start?

Learn as Much as You Can

This involves remembering the previous info we gave you, but mostly anything related to CBD and how you can use it and its benefits and not-so-good aspects.

You see, most people that reach out to you are either new and have never experimented with it or are very specific about what they want and how your products will help them in particular.

Many of them would reach out to doctors or specialists for the first group, but it isn’t a crime to ask the seller (you) for a recommendation and help them choose the products. After all, you’re supposed to be well-knowledged in what you offer.

So, where would we recommend starting with this? Most likely to learn about the pros and cons of ANY CBD product you can offer.

Also, keep up with any trends and news about the industry.

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For starters, you must know that people have started to use CBD more often since it was legalized in certain states in the USA and other countries, and some of those numbers have actually improved.

Inhalers that contain CBD have been proven to be more effective than traditional nicotine for people who smoke. Some studies show that they no longer crave nicotine over half the time.

While nicotine has a relaxing effect on people, the previous benefit is due to its ability to induce tranquility and serenity. This is more addictive than any other substance.

This doesn’t mean that you shouldn’t smoke marijuana. However, inhalers and other products that provide benefits are a great option that can help people quit smoking and improve statistics.

This is just simple information you must know to boost your sales and explain why your CBD is better than the regular nicotine and elements other people have been using.

We can also mention other benefits of CBD you should keep in mind:

  • It can help reduce inflammation and pain from acute injuries.\
  • CBD can also be used to treat depression and anxiety.
  • It has been proven that it can slow down the progression of Alzheimer’s.
  • The list of CBD-based treatment options for other psychiatric disorders has been expanded to include those with schizophrenia.
  • CBD can help with anxiety disorders. These include PTSD, panic disorder, and obsessive-compulsive disorder.

Also, when someone asks you to compare the regular marijuana or THC and CBD, remember the latter has been shown to be a great option for people who are suffering from pain or other conditions just like THC as it is but without the secondary effects that are characteristic of the common product.

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On the other hand, people only want to know about the benefits. They need to know about how good a product can be and what can come with its use in this case. So, whenever someone asks you, be transparent and include some or all of the cons when requested:

  • Side effects include dry mouth, nausea, dizziness, and lethargy.
  • You don’t know if CBD can cause the opposite effect you desire, even if your condition or disease is listed in CBD’s benefits.
    Liver damage.
  • Some males have reduced fertility.
  • It can make you unhappy and irritable, rather than improve your mood.
  • Gastrointestinal issues and loss of appetite

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Determine Your Subniche in the Industry

Moving on, CBD is more than a simple niche that englobes everything. In it, you can still find several options in which you could specialize and you should.

This is strongly related to the wide variety of products you can find, and for your information, you don’t have to offer all of them, but it is possible.

When starting, most entrepreneurs prefer to focus on one or three products maximum in order to reach a specific audience since some are more popular than others. With time, they are able to introduce new products and cover other sub-niches based on the company’s growth.

Now, the big question: what can you sell?

Following our previous mentions about vape, oils, and capsules, you pretty much need to choose from them. To give you a better idea, these are options available and a short description for you to make a proper choice:

  • CBD-infused foods/beverages.
  • Supplements/wellness products.
  • CBD-based cosmetics.
  • CBD products for pets

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Next, zoom in on the product types. These are based on CBD consumption methods:

  • Drops or sprays: CBD oil is the key ingredient in both. It’s decarboxylated hemp/hemp flower and mixed with a carrier oil. They may also contain flavoring agents or other compounds to make them more enjoyable to consume.
  • Capsules and pills: By wrapping a dose in gelatin or soft gel capsules, it makes it easier to digest. This form of CBD may also be more appealing to people who use it as an alternative to prescription medicine.
  • Vapes and cartridges for CBD: Inhalation products are popular with recreational users of MJ and those who enjoy vaping socially. This method is preferred by CBD users who are looking for pain relief. It absorbs CBD faster through inhalations.
  • Tinctures: CBD-based Tinctures are made by mixing cannabinoids and alcohol or another strong solvent. CBD tinctures may also contain additional herbs. Although most tinctures don’t taste great, they are very popular among people who want to feel the benefits of CBD quickly.
  • Topicals & patches: Designed for targeted action like joint, back, or menstrual pains, CBD patches, and topical ointments are best suited to those who don’t enjoy hemp flavor or prefer external applications.

Learn About Laws and Regulations

It is possible to grow herbs legally as long as you guarantee most of the levels in the compounds, which would sound impossible for most people. However, many farmers and suppliers are able to achieve it, and you can legally grow hemp-derived CBD and then sell it across the country.

There are, however, some limitations, and if your products, in case you are getting the raw materials from third parties, don’t meet the standards, your company will be under investigation. Therefore, keep in mind these laws:

  • You can’t use more than 0.3% THC in the hemp you use to make CBD. Higher concentrations of THC are automatically considered marijuana plants, and stricter regulations apply.
  • CBD is a product of marijuana plants and is legal in 15 states to be used for recreational purposes and 36 states for medical cannabis use.
    Other regulations apply depending on your state, which is why deep research is recommended based on where you’re located.

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Work on Your Business Plan

Without a solid business plan, jumping into a business is like driving without even knowing how to do it, where you are going, or what you will do next. Let’s just leave it at the fact that you’re lost most of the time when going to a new place without a map.

Your business plan can be your guide for keeping you on top of new market opportunities, changing regulations, and conflicting operational priorities in the CBD niche. It’s also the document that financial supporters and other stakeholders want to see.

In addition, it is a crucial “piece of paper” (as some call it) that influences whenever your request any kind of loan or credit for your business.

The main problem with business plans is that most people don’t know where to start or how to structure them. It isn’t easy, but it doesn’t have to be complicated either. So, to lend you a hand, these are the parts you should focus on and even follow as if they are steps:

Get Started with A Market Analysis

A market analysis provides enough information to help you understand the market size, competition, and other variables. To make better decisions about your product positioning, pricing, and overall go-to-market strategy.

Choose Your Brand Name and Confirm Your Product Range

Describe how your brand, together with other assets, distinguishes you from your competition. Describe the CBD niche that you are targeting and why. Briefly describe your product range, with a focus on product quality and competitive parameters.

Calculate Your Financing and Your Current Capital

Figure out how much cash is needed to launch your business. These can be broken down into one-time prelaunch investments or ongoing monthly costs. You should always add more padding to cover unforeseen expenses. Next, calculate how much time you will need to sell enough to break even each month and if you have the money necessary to get started.

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Create A Realistic Marketing Strategy

The marketing strategy outlines your methods to increase awareness about your CBD brand, acquire new customers, and foster repeat purchases.

Get Your Business Documents 

Two types of licenses are required to sell CBD online or offline:

  • Register a business in your state and get an EIN/TIN for your regular business license.
  • You will need a Reseller’s certificate (certificate) to purchase CBD wholesale from retailers. This license is vital because it allows wholesalers to purchase CBD without having to pay sales tax. You can also collect sales tax from customers with the license.

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Locate Your CBD Supplier

Finding a trusted CBD supplier is the most crucial step in your business. There are several reasons why this is so.

If you plan to sell CBD across the country, it is important that you only sell CBD derived from hemp plants. These products are only legal in a few states because they contain a higher level of THC. However, it is not possible to test the plant for THC.

If neither you nor the farmer has the ability to test the crop, this can make it difficult to purchase raw materials from farmers.

However, reputable wholesalers can do laboratory testing and provide certificates of analysis (COA) detailing product content. It is a red flag if they are unable to provide one.

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Create a Website

Although it is possible in some cities to open a traditional store with CBD products, most people decide to go for the online alternative since it follows fewer regulations in the long run and is less expensive. Also, you can cover more cities and states with it.

For this, you will need to create your own website to display your products, provide the information, and make sure you can allow others to purchase your products without any issues. This will save you time in the process of explaining each of them as well.

You can reduce the time it takes to develop a website by choosing an eCommerce platform over open-source eCommerce tools or custom development. The solution provider takes care of hosting and infrastructure. All you need to do is create your store and list your products.

When you’re working on your site, we would recommend keeping these aspects as the main ones since they influence your website’s result:

  • Customize your design.
  • The key product information is prominently displayed.
  • Be aware of the navigation.
  • Add products and descriptions.
  • Upload product photos.
  • Decide your shipping policy.

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Promote Your CBD Company

Once you have your business up and running, it is time to start looking for customers. While CBD is a hot industry right now, it won’t be able to attract customers on autopilot. You must have a solid marketing strategy to generate the leads you want.

For it, we can share some tips and tricks in order to let you know where to focus your attention:

  • Dedicate time to content building. 

Due to the misinformation from brands and false medical claims of self-proclaimed gurus, CBD products remain largely misunderstood. Seeding quality content will help you build your first customer base.

Invite industry experts to help you create more rich content than your competitors. Your blog and social media should be your main focus since that’s where the majority of younger consumers look for product inspiration and information.

  • Use SEO to your advantage.

To dominate the search engine results, publishing well-researched content is crucial. This is especially true with the recent Google update, passage indexing.

Google has improved its AI algorithms to individual index pages rather than the whole page. This allows users to find information in a needle in a haystack by allowing them to search for specific passages.

  • Get involved with influential people.

Patients’ advocacy and evangelism are the keys to CBD’s current popularity. People who have used CBD to manage chronic pain and seizures first spurred mass interest in the plant for both therapeutic and wellness reasons.

Many celebrities are passionate advocates for CBD today. Some even started their own CBD businesses. Finding credible advocates for your brand should not be a problem. Make sure you only partner with people who are committed to your brand and can talk about CBD with authority. Don’t forget to disclose mandatory FTS information.

The Local Lead Generation Process for Your CBD Business

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All right! So, everything is about building properties and generating leads. But how does the process actually take place? Are there other steps I need to know?

The steps I mention below are what students from our local lead generation program follow to generate leads for businesses like yourself. So I’ll help you see what we do. And how if you join our program, you can simply generate leads for your own business (unless you want to start a side hustle and build a laptop lifestyle business).

Essentially, our lead generation can be divided into four steps:

The first is prospecting. You need to take the time to do market research on a niche (industry) and determine how many phone-driven businesses are there.

Keep in mind that this is local research as you need to know how many companies need leads. For example, you may search for “plumbing services Youngstown OH.”

You will find dozens or even hundreds of businesses trying to get themselves in front of the customers by ranking on Map Listings, organic results, and even Ad.

The second step, building. When you find a niche (plumbing, tree services, a software company, real estate…), you will need to start building your digital properties. You don’t need to be an expert in HTML or coding. It can be easy with the right tools.

The third step is now taking time to rank your lead gen website. With the site done, you need to work on SEO strategies and start dominating those Google search results. If you’re new to SEO, it stands for Search Engine Optimization.

To keep it simple, it consists of the entire process of growing a company’s visibility on search engines like Google and generating organic traffic. And remember this, local lead generation is part of the strategies.

Moving on to step four, once you rank the site, you will start getting your ROI and profits. You only need to rent it out to a local business interested in the leads the site generates. You can offer a couple of free leads to their move on with the actual pay per lead.

To review steps 1-4 above, I described it to a normal student who is building a lead gen business to help local service providers generate more calls. But replace the student with you as the business owner. And replace sending the leads to a business to simply siphoning the leads to your personal business.

By the way, fun fact, about 20% of our students in our local lead gen program are actually business owners who went through the program. And they use the skillsets we teach to generate leads for their own business.

An Example of Lead Generation: Home Advisor

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You must be thinking, “if lead generation sounds so good so far, how come I haven’t seen any company?” That’s the thing; there are many out there. You just don’t know they are dedicated to it.

HomeAdvisor is one of the best examples you can find on the Internet as it is a top lead generation company that has spent millions building its brand but also earned even more zeros for this same reason.

They started small as everyone else but invested in building their brand awareness to make people who are looking for home services go to their website and find what they need. They are over 75% of people’s first choice when they need those services.

If you don’t get HomeAdvisor that much or need a refresh, users need to submit their information to request a service and get a professional or expert who can provide it.

HomeAdvisor’s job is to share your information, which makes you a lead, with local companies so they can contact you and offer the service you’re requesting. For sharing this lead information, HomeAdvisor gets paid by the companies. This happens for every single lead they send to multiple businesses.

Business owners who don’t have marketing skills or don’t even know how to have any online presence will always rely on those pages to list their services.  They will save time and effort, but companies like HomeAdvisor can make them spend lots of money as leads aren’t exclusive (one lead is sent to multiple companies after all).

Using Facebook Ads aka Paid Ad Platforms: Do They Generate Leads?

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They DO generate leads. If not, no one would use them.

However, you need to remember two facts:

  1. Paid ads or platforms can be expensive.
  2. They don’t generate “natural” leads.

Whenever someone sees or clicks in one of those ads, over 80% of them did it by accident or are trying to close/report it.

Why? Because they aren’t looking for those services. At least not at the moment.

What those ads do instead is interrupt their time on the platforms. Users aren’t there to find companies or businesses unless they are searching for a specific company’s user, and for that, there’s a search bar. This is why it is hard to convert them to actual customers who will show interest in the companies’ services. Also, you’re limited by a budget.

When using lead generation, everything is organic. You aren’t forcing others to pay attention to your business but rather being there when they need you. This is why Google’s organic traffic will always beat paid ads, and the reason companies continue investing in it, which is a lot cheaper as well.

What Is Local SEO?

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Don’t worry… I didn’t get it at first either. Following the short explanation, local SEO focuses on scaling businesses’ visibility on search engines. However, this is only for those who serve their communities face-to-face.

What does this mean?

Experts and professionals like painters, plumbers, and dentists (but not only them) offer their services to their local customers. Why? Because they can’t deliver them unless they are located in the same area of their customers.

To make sure those businesses get more leads, you need to rank them locally by claiming the business listing on Google to place them on Map Listings. Local SEO also involves online reviews, citation management, and how you manage your entire online presence in the local area.

If you are going to bet on lead gen, you need to adapt yourself to today’s world: The Internet.

Keep in mind that although traditional channels and methods like billboards, warm calls, and pamphlets still work, they aren’t part of your tools. Whenever someone needs a service, they go to Google and search for it.

“Dentist in Miami” or “plumbing services in Orlando,” etc. And you can keep coming up with services or professionals people need and look for. Thus, you need to make sure you’re using Google to get the companies in front of their clients.

Users will always click on the first search results (those near the top), and many of them will be either Ad links (people paid to place their websites there), Map Listing, and then you get websites. Almost all of them are your goal and where you should always aim to place yourself.

Can My CBD Business Utilize a Local Lead Generation Strategy?

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If you want customers, you better know you need it. Following the previous explanation, lead gen is all about placing businesses in front of their customers, choosing them over their competitors.

Put it simply – it’s all about closing deals and having clients for those companies to make money. The main difference with the usual methods companies use for this is how lead generation approaches different channels to get them in the right place of the market to get customers.

Those channels are all focused on the Internet as most people are searching for products but also services across the net. The issue is that the Internet is way too broad, and businesses don’t know how to place themselves. They usually try, but they get one common result: losing money and time.

How Powerful Are Organic CBD Leads from Google?

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For companies looking for customers, it’s everything. For you? Pretty much the same. When you build a business with digital properties, you get to make thousands of dollars a month.

This isn’t a “get started today and get rich tomorrow” thing, but it is HIGHLY scalable, and ROI + positive results are guaranteed. Learning a fairly decent and very needed set of skills to create your digital properties and start ranking them on Google is required.

I have invested in several online businesses over the years, and if there’s something uncertain, whether you will get your ROI or not, even more than the actual profit.

However, this business moved my earnings from five figures a year to a month in ONLY passive income while sitting comfortably at home.

On my laptop. Anywhere. Anytime.

You can look at one of the first sites I built back in 2016, and it continues making me over $1.000+ every month. The best part is that I don’t need to touch it or the rest I’ve built over the years, just like this digital property.

What Makes Lead Generation SO Alluring?

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Here it goes: you can work from home.

The main issue with regular business opportunities is how much you need to invest in staff, equipment, or rent to have a place to sell your products or offer your services.

We all know the hassles of traditional businesses that involve regular expenses, which are extremely high.  Can you afford it? I don’t think so, and even if you can, is it worth it? Now, it isn’t only about the money. You also need to put in a lot of work, and it isn’t only during the first couple of months or years. Usually, it is as long as you continue running it.

You can save yourself those headaches and bone-breaking tasks and expenses with lead gen since it is more about generating leads with digital channels—mainly websites.

Websites can be VERY cheap to build, and with many tools online, you get to do it in a couple of hours instead of days. Any virtual or digital business is scalable and won’t need constant maintenance.

So, let’s summarize this:

  • You save money in regular expenses with traditional and most online businesses as what you need is yourself and digital properties (websites).
  • You can bet on passive income.
  •  There’s no need to hire more people to get started.
  • You can generate leads in multiple industries, which allows you to work on any niche you want.

How Can I Get Started in the Local Lead Generation Program?

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Anyone can start and learn. That’s the beauty of this business model. I knew nothing about SEO, Map Listing, and everything I’ve mentioned so far. It is all about learning the skills, gaining experience, and deciding to take the step.

Remember that this business model will never get old as business owners are always looking for leads. They need to do business and scale their companies. Why not do the same while helping others and still making money?

You can start with this local lead generation course highly recommended for anyone wanting to grow in the business. It is a close training that will take you through each step and make sure you are able to get your ROI, profits and take control of your life.

You will be added to an incredible lead generation family ready to help you 24/7 when asking questions on the group. Anyone is welcome who’s willing to put in the work. Click here to watch the lead gen webinar.

Learn more about local lead generation below.

Take a sneak peek into our proven strategies to build a passive income by building a local lead generation business from your laptop...