HOW TO START A CBD OIL BUSINESS


Hemp! Hemp! Hooray!

On December 20, 2018, President Donald J. Trump signed into law the 2018 Farm Bill.  

By signing the 2018 Farm Bill into law, President Trump effectively ended the prohibition of hemp that began with the 1934 Marihuana Tax Act.

For decades, industrial hemp was classified the same as marijuana and other intoxicating substances. Now, with the signing of the 2018 Farm Bill into law, industrial hemp will be classified as an agricultural commodity overseen by the Department of Agriculture.

This is good news for industrial hemp farmers as the emerging market for CBD Oil products will present new market opportunities for all kinds of enterprising entrepreneurs.

CBD INDUSTRY PROJECTED TO GROW TO OVER $20 BILLION BY 2022

The decades long prohibition on hemp has now been ended and the CBD Oil boom is on!

The Hemp Business Journal estimates that the CBD market will grow to $2.1 billion in consumer sales by 2022. This projected growth presents great opportunities for entrepreneurs to make a lot of money, even creating generational wealth for their families.

If you are such an enterprising entrepreneur, you may be wondering how you can start your own CBD Oil business to get a piece of this emerging and booming financial pie.

The good news is whether you have lots of business experience and startup capital or you have no business experience and little to no money to invest in starting a CBD Oil business there is a business model for you to get into the game.

4 WAYS TO START YOUR OWN CBD OIL BUSINESS

Depending on your level of business experience and the amount of financial resources available to you, there are four business models that can allow you to start your business selling CBD Oil products.

Business Model #1: Retail Storefront

If you possess considerable retail experience, you may want to consider opening your own retail store front. However, opening your own CBD Oil retail store will cost thousands of dollars to start up just like any other retail business.

You must also have a SOLID business plan before opening your own CBD Oil retail store.

A well-prepared business plan will include a detailed examination of upfront costs to open your store and the recurring expenses you will need to keep it running profitably.

So, how much does it costs to open a CBD Oil retail store?

The truth is there is no clear, cut, and dry answer to this question. The best way to answer this question for yourself is working through the process of a well-researched, well-prepared business plan.

Business Model #2: Online Store

If you have a passion for Internet marketing and online retailing, opening your own CBD Oil online retail store may be the most profitable business model for you.  

You can launch your own online retail store using ecommerce platforms such as Amazon, Shopify, WooCommerce and Ebay.

Ecommerce platforms can provide you with awesome FREE do-it-yourself (DIY) tools and resources to get your online retail store started started and paid services to support your growing business.

Another way you can start your own CBD Oil online retail store is to purchase an existing one.

In either case, whether you decide to do-it-yourself or buy an existing profitable online retail business, you will need a SOLID business plan just the same as you would with opening a traditional CBD Oil retail store if you want to be successful.

Business Model #3: Affiliate Marketing

Affiliate marketing is a form of Internet marketing where you partner with a merchant to promote their products on your website or blog.  

Each time you send traffic to the merchant’s product or service and a consumer makes a purchase you will receive a referral commission.    

Most affiliate programs are FREE to join.

However, some have very strict requirements such as your website having a certain amount of traffic before they will partner with you. Other affiliates such as Amazon make it easy for anyone to join their affiliate program.

Despite the hype you may hear or see about affiliate marketing on the Internet, it is not a get-rich-quick way of making lots of money.

Even though you can start an affiliate marketing business with very little startup capital, becoming a successful and profitable affiliate marketer requires a lot of hard work and a huge learning curve.

Many affiliate marketers are making a few extra hundreds dollars a month to more than five figures a month. The amount of income you make from affiliate marketing will depend on your passion, your willingness to learn, and the patience and perseverance to stick with it.

Again, the best way to position yourself for success with affiliate marketing is to treat it like a real business and put in the work to create a SOLID business plan before you start.

Business Model #4: Online Direct Sales

An entrepreneur with a SOLID business plan can create tremendous wealth in a short time frame of 2 to 5 years with a direct selling business.

The most recent data from the United States Direct Selling Association (DSA) states that 18.6 million people joined direct selling companies in 2017.  

Direct selling companies offer a very lost cost of entry in the CBD Oil business for enterprising entrepreneurs, ranging from FREE to less than $500 to join. In fact, the most recent data from the DSA states the average startup cost as $106.40.

Because of its low cost of entry into entrepreneurship, many people who possess little to no business experience can join a direct selling company.  

For people with little to no business experience, joining an online direct selling company is a great opportunity to gain business knowledge and develop the personal and business skills they will need to succeed while also earning some income along the way.

RELATED: HOW TO RESEARCH A CBD OIL DIRECT SALES COMPANY

With a online direct selling business, the growth of an entrepreneur’s CBD oil business will be in direct proportion to the entrepreneur’s personal growth.

Because the cost of entry is so low to start a online direct selling business, the failure rate is very high.

In fact, the DSA breaks down the 18.6 million people that joined a direct selling business in 2017 as:

  • 4.7 million part-time business builders
  • 0.9 million full-time business builders
  • 4.1 million discount buyers
  • 9 million become inactive

According to these numbers, almost 50% of those who try to build a direct selling business quit!

As you can see by the numbers, less than 1 million direct sales entrepreneurs made a full-time income in 2017.  The majority that did not quit were either part-time business builders or they just purchased products at a discount.

The bottom line is that building a business with a online CBD oil direct sales company can be a wonderful opportunity for anyone to, as the old saying goes, “get some skin in the game”.

WHICH BUSINESS OPPORTUNITY MODEL IS RIGHT FOR YOU?

The answer to which of the above business opportunity models is the right one for you depends on a number of factors, such as but not limited to:

  • Your level of business experience
  • Access to startup capital
  • Your passion for a particular business model
  • Your personal interests
  • Your willingness to work hard and smart
  • Your commitment to growth as a person and an entrepreneur

To determine which business opportunity model is right for you, choose the business models that interest you and research them as much as you can until you gain the knowledge you need to make a solid decision. Once you decide which business model best fits you, you will greatly increase your odds of success by putting together a well-researched, well-prepared business plan.

RESOURCES FOR FURTHER LEARNING

Affiliate Marketing – WIKIPEDIA

2017 Facts and Data, PDF – DIRECT SELLING ASSOCIATION (DSA)

2017 Direct Selling Consumer Attitudes Survey, PDF – DSA

In Direct Selling, Success is Different for Different People, PDF – DSA

Direct Selling: An Accessible Path to Entrepreneurship, PDF – DSA

All information on this website is for informational purposes only. None of the articles on this site are intended to suggest or recommend the diagnosis, treatment, cure, or prevention of any disease, nor to substitute for medical treatment or as alternative medical advice. The use of any of the information on this website without first consulting with a doctor or pharmacist is at the choice and risk of the reader.

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M. Clayton Pearson

M. Clayton Pearson is the CEO of Powers & Sloan Publishing, LLC, a privately-owned digital media company based in Indianapolis, Indiana. His passions include health and wellness, mixed martial arts and all things nature.

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