Your Guide to Earning in Cannabis Industry

Posted by Benjamin Johnson on March 16th, 2021

So, marijuana is now legal (at least according to some state laws), and you’re considering getting into the market. Or maybe it’s coming to your country soon, and you want to be the early bird that catches the worm? In any case, you must first observe the market’s current state to assess the prospects of making a living from it properly. 

However, though it can appear fun and exciting from the outside looking in, the cannabis industry is far from an easy place to start for entrepreneurs. Hopefully, this would not discourage you, but it is essential to understand that the cannabis industry comes with its own particular set of unique challenges. 

For starters, many businesses must meet a particular set of criteria even to get started; there are miles of red tape to adhere to, vastly changing rules, and a slew of other requirements that people must navigate if they want to get a slice of the action. 

Whether you intend to manage a large cultivation business or an independent cannabis packaging store, the point remains - it certainly is not a place for those with little experience. But with that said, there are plenty of rewards waiting for those that have the skills to stand up to the test. 

The current state of the cannabis industry

The cannabis industry in the USA was estimated to be worth around .3 billion in 2020, which was an increase of approximately 70% from the previous year. So what was the driving force for this growth?

Well, according to online data, about 12% of Americans now use marijuana regularly. On top of this, in the United States, support for drug legalization has never been more substantial, at about 68 percent. Of course, this massively increased demand, and cannabis consumption increased as the taboo was lifted. 

However, any individual with experience in the cannabis industry will warn you that it is not for the faint of heart. Aside from the usual startup difficulties and the myriad of legalities that you have to deal with, there are many barriers to overcome if you want to be successful. And let’s not forget the current complications due to Covid-19:

“Cannabis is a very social industry with networking events, conferences, trade shows, and parties. Many companies and organizations rely on these events to market products, connect with clients and potential clients, and do business face-to-face. The current situation with coronavirus has had a severe impact on this part of the industry,” says Morris Beegle.

On the other hand, COVID has provided some intriguing new possibilities in the cannabis industry, most notably in the area of distribution. Things were different before COVID, but now we see a lot of online weed packaging stores open up and do a lot of business.

“We don’t yet know how COVID-19 will change the cannabis industry. The impacts will be significant. What I do know is that people need more weed in a crisis, not less. Someone will get it to them, one way or another,” says Andrew DeAngelo.

Also, running a cannabis business is capital intensive, purely because of the many “hoops” a business needs to jump through. Things such as licensing, health regulations, permits and cost a pretty penny, and as such, the price of entering such a relatively industry is unusually high. Yet, despite the industry’s youth, it already has big competition, which is another factor.

What are some ways to earn in the cannabis industry?

As previously stated, despite its youth, the cannabis industry has become notoriously competitive in recent years. However, the current COVID-19 situation has acted like a somewhat equalizer for people looking to enter the industry. For example, there are now a new set of challenges that must be overcome, and as a new business, you have the advantage of setting things up with the Covid restrictions in mind. This allows you to be more nimble and agile than your competitors, and you can even tailor your servicers to overcome headaches brought about by the “new normal.”

For instance, delivery and logistics have become quite a hot choice for startups as of late. Dispensaries and traditional cannabis packaging stores, and all those locations that customers need to buy their drugs have certainly lost some sales. However, things seem to be booming on the online side of the equation.

Of course, all of this is contingent on the legal status of cannabis in your area. Some states, for example, permit medical usage and where others are more liberal and allow recreational use. With that said, here are some ideas for earning money in the cannabis industry:

• Start a cannabis-related blog.

• Advertise affiliate programs

• Set up a company in distribution and logistics

• Start a media outlet.

• Start a dispensary

• Open a cannabis packaging store.

• Become a grower

What marketing tactics to use for marijuana products?

Whether you like it or not, COVID now dictates the way we do business. As previously said, the entire industry’s emphasis has now shifted towards digital methods to meet consumer behavior change. This means that many brick-and-mortar businesses must now turn to digital marketing tactics to connect and engage with their customer base if they aren’t to lose out to their competitors.

On that note, here are some of the best marketing tactics to follow when promoting your marijuana products::

• Start a blog and drive organic traffic to your website.

• Set up social media channels to engage with your customers

• Consider influencer marketing options on social media.

• Build an affiliate network

• Build an email list and market to them directly

Whatever you decide to do, keep your brand in mind at all times and learn how to stand out and differentiate your company from the rest of the competition. Create engaging video content to engage your viewers, conduct polls and surveys, and don’t be shy to show customers how they will benefit from your services. 

Good luck, and thanks for reading!