As cannabis legalization continues to spread across the United States and around the world, the cannabis industry has caught the attention of many entrepreneurs wondering how to get in. However, those in the industry face a competitive market that demands constant innovation to win over increasingly selective consumers.
Successful companies can be incredibly profitable, but the challenges of launching a cannabis brand and developing a loyal customer base require investing considerable resources into your marketing strategy. Navigating the legal restrictions on advertising cannabis products and the current status of THC as a controlled substance can be tricky. Read on for a basic primer on how to effectively market your products in the cannabis industry.
How can you market a cannabis business effectively?
With so much competition, you need to be able to communicate what makes your brand unique to potential customers. There’s no replacement for delivering quality products, but it takes more than that to stand out in the cannabis industry. This California cannabis company, the Legion of Bloom, donates a percentage from the sale of each THC cartridge or other cannabis product to environmental causes. This gives them an edge with the increasing demographic of consumers who prioritize eco-friendly products.
One option for entrepreneurs who are serious about growing their businesses is to invest in the services of a fractional CMO. Chief Outsiders is one of the premier providers of fractional CMO services, which can help businesses develop and implement a comprehensive marketing strategy. This can be particularly useful for small businesses or those who don’t have an experienced marketing professional on staff.
It’s important to keep in mind that cannabis companies often have to deal with many restrictions when promoting themselves. Many platforms also don’t allow ads for anything connected to cannabis at all. Brands that want to attract a larger audience should make an effort to connect with popular cannabis blogs and online influencers to provide reviews or exposure in exchange for complimentary products.
Is the cannabis industry profitable?
One question anyone should ask themselves before starting a business is whether they’ll be able to achieve profitability. If your business plans to sell marijuana products that contain THC, you’ll be navigating a more complicated legal landscape than companies that exclusively develop products that contain hemp-based CBD. This is because THC is still a controlled substance and illegal on a federal level, while hemp byproducts were legalized through the passage of the 2018 Farm Bill.
Despite these legal hurdles, the cannabis industry has already proven to be incredibly profitable. In 2021, cannabis sales reached a record high, bringing in over $17.5 billion. With many more states considering legalizing medical or recreational use, it’s unlikely that its popularity will fade anytime soon. Opening your own dispensary is one option, though it will have a significant start-up and operational costs. For most people, it’s easier to collaborate with established dispensaries that can stock your products.
Though the cannabis industry is still in its early stages, it has already started to rake in billions in profits annually on a consistent basis. Naturally, many savvy entrepreneurs are interested in finding ways to get involved. Cannabis businesses face unique challenges, including a complicated legal system, but the potential for profitability is often worth the additional hurdles.
Keep in mind that it’s important to remind customers to get their doctor’s advice before using cannabis for the first time. A doctor can explain how cannabis may impact any health conditions they have or interact with medications they’re taking. The most successful cannabis companies go beyond selling quality products and create a unique brand identity that attracts loyal and dedicated customers.