Three Ways To Make Money In The CBD Industry

The health and wellness industry is a multi-billion dollar enterprise serving tens of millions of customers worldwide every year. And in 2022, there’s probably no product more popular than the natural medicine known as CBD. 

Sales of CBD related products in 2021 topped $5 billion, and financial analysts predict it will continue to grow at a rapid pace over the next five years. Estimates range from 12% to 50% as more people learn about CBD’s amazing benefits. 

Cannabidiol, or CBD for short, is a phytochemical compound extracted from hemp. It is one of over a hundred cannabinoids and is used for various wellness concerns, including stress relief, anxiety reduction, pain management, and sleep improvement. According to a recent report, over five million people in the U.S. alone have tried CBD at some point in the last couple of years, and many of them continue to take hemp medicine daily. 

The extract can be purchased in many forms, including CBD oils, edibles like honey sticks and gummies, and topical creams or salves. 

Following the passage of legislation in the United States in 2018 that allows for the cultivation and sale of hemp-based extracts, thousands of online and brick-and-mortar retailers now offer CBD products to their customers.

If you own a retail store, are a natural medicine practitioner, or have an online presence, you can begin offering CBD products to your customers with these three ideas.

Affiliate Referral Programs

If you run your website, have a social media page, or are a video publisher, entering the CBD market can be done in just a few minutes. 

Many top brands offer a CBD affiliate program to earn you commissions for simply referring your readers or viewers to their website. It’s as simple as pasting your unique referral link into a post or video description or sharing a unique coupon code. 

Referred customers are tracked via trusted third-party affiliate software and log every visit you refer. When your referred visitor makes a purchase, you get paid a hefty referral fee. Some programs offer as much as 30% referral commissions, rewarding you with nearly one-third of the purchase price. 

At price points ranging from $35 to over $1,000 per CBD purchase, the commissions can significantly boost your revenue while providing a truly beneficial product to end users. 

If a referral model sounds like a good fit, consider finding an affiliate program with the following features:

• Find a program with a long-duration tracking cookie of 30 or 45 days. This will track your referred visitors for up to six weeks, so even if they leave the brand’s website several times, you’ll earn a referral commission when they finally purchase within the 30 to 45-day time frame.
• Earning a commission on a sale is great, but it is much more lucrative to earn a referral commission on every purchase your customer makes in the future. Look for programs offering lifetime commissions and recurring billing packages that link your referred visitor to your account for life. 
• Regular payments are essential. Some programs pay their affiliates every few months, but if you need to generate revenue more regularly, consider an affiliate program that pays affiliates every two weeks or once per month. 

Wholesale and Private Label CBD For Your Store or Website

If you own a customer-facing brick-and-mortar retail store, then putting CBD products on your shelves could help boost revenue by hundreds or thousands of dollars per month. This also works for online retail stores looking to add more products. You can purchase CBD products at wholesale prices from several quality brands. 

If you have your own brand, private label CBD may be the perfect solution. With private labeling, you can purchase CBD products at wholesale prices and use your own label and brand name on the bottles or containers. This allows for easy expansion of your brand product line. 

Here are some things to look for when researching wholesale or private label CBD products:

• Buy from a reputable manufacturer. With so many CBD companies, it’s hard to know whom to trust. Get in touch with the manufacturer and ask questions to get a feel for how their company works. To verify product quality, ask for a certificate of analysis or lab test for specific CBD products. Serious manufacturers will have these available via email or on their websites. 
• Look for a company that offers a low minimum order quantity for first-time customers. You may be hesitant about adding CBD products to your shelves or online store. Low MOQs allow you to order a few products at low quantities and reasonable pricing to try them out and see what works best. 

Drop Shipping

Drop-shipping may be viable if you want to offer CBD products but don’t necessarily have a store location or prefer not to purchase any items upfront. 

Establishing a drop-shipping relationship allows you to sell CBD products to your customers without holding inventory. Some wholesale companies offer this option. 

It works by placing single item orders directly from the drop shipper. They process the order, ship the package, and provide door-to-door tracking.

This takes logistics complications out of the picture and lets you focus on what matters most – providing your customer with the products they need. 

Getting Started

Though it may seem a bit intimidating at first, offering CBD products to your customers doesn’t have to be complicated. 

Many options are available, and a reputable company with a long-term vision for success will be more than willing to work with you to create a mutually beneficial relationship.  

In most cases, the only thing you have to do is dedicate some time and energy to getting everything organized. Getting through the initial steps will be well worth it, as you see your business’ profits soar in one of the hottest health sectors in the world. 

TIME BUSINESS NEWS