In 2018, the U.S. Congress passed its newest version of the Farm Bill. The bill contained some significant updates to the way the government would view and regulate the hemp industry. At its essence, it created a soft legalization and DEA scheduling reclassification for hemp-based CBD. This was a massive win for CBD advocates, users, and CBD companies in the industry. In fact, cannabis industry analysts predict the CBD industry will surge, hitting a $22 billion market cap by 2022.
Previously, CBD existed in a legally grey area. This dissuaded many smaller businesses who would’ve liked to enter the market but didn’t have the protection of a large company to shield them from possible government interference or blowback. Now, however, this soft-legalization has paved the way for small businesses to get in on this new gold rush. If you’ve been looking to join the industry along with other CBD distributors, that is now a viable and legal option. Below, we will discuss the steps you need to know for how to become a CBD distributor today.
Steps to Becoming a CBD Distributor
Step 1 – Know Your Product
If you want to sell any product effectively, you have to know what it is you are selling. This is especially true for products in the health and wellness industry – fields that can be filled with charlatans and pseudo-scientists looking to make an easy buck. Take the time to educate yourself on CBD hemp oil and other CBD products:
- Read well-sourced research articles to learn how does CBD work in the body
- Watch educational videos
- Speak to people who’ve benefited from using CBD products
- Study the ins and outs of the industry as a whole
You should know the possible health benefits of CBD oil, including that it may aid in:
- Pain relief
- Anxiety relief
- Seizure reduction
- Inflammation reduction
If you want to be a hemp oil distributor, you have to be its biggest ambassador. When prospective customers ask questions, you not only need to have an answer prepared, but one that you also believe in if you want them to buy CBD products from you. When you reach the point where you are ready to make your first bulk CBD oil or other product order from a trustworthy CBD business such as BioCBD+, be sure to ask your sales associate for informational materials that you can use to educate yourself and your customers.
Step 2 – Know Your Customer
Knowing your customer is every bit as important as knowing the product you are selling. In a booming industry, it’s essential to find your niche and target them accordingly. Although you can sell to everyone, it is helpful to focus on a specific audience.
If you already have an existing business, consider ways to pair the two or angle your marketing around the issues involved therein. For example:
- Masseuse, physical therapist, chiropractor – You can offer your clients CBD to see if that helps them manage their pain or inflammation.
- Mental health and wellness professional – You can see if CBD oil may help your clients handle their stress or anxiety.
Knowing your target consumer helps you chart your business plan and map out your approach to building the business and garnering interest in the product.
Step 3 – Register Your Business
Once you have fully prepared yourself and outlined a business plan to be a CBD distributor, you will want to make it official. In order to stay out of legal trouble and limit your personal and tax liabilities, you will need to register your CBD oil distribution business and apply for a Seller’s Permit. According to the state of California:
“Individuals planning to sell cannabis or cannabis products on January 1, 2018, must register with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit. Cannabis cultivators, processors, manufacturers, retailers, microbusinesses and distributors who make sales are required to obtain and maintain a seller’s permit as a prerequisite for applying for a license with the Bureau of Cannabis Control, the Department of Food and Agriculture, or the Department of Public Health.”
After registration is complete, you’ll need to consider other key aspects of business development, including whether you want to hire employees or need to obtain outside investment.
Step 4 – Set up an Online Store
Once you have the legal green light, it’s time to purchase a relevant domain, create a website, and set up an eCommerce store. When selecting a web host, it is vital that you confirm with them that they allow you to sell CBD oil on their platform. Ideally, find a host that offers an easy and intuitive website builder.
Step 5 – Select a CBD Oil Supplier
Because the Farm Bill only created a soft legalization, it’s critical that you find a CBD supplier that adheres to the rules and regulations outlined in the farm bill. First and foremost, the CBD you source must contain less than .3% THC or else it will be classified as marijuana and treated as a Schedule 1 drug. In addition to the maximum required levels of THC, you want a CBD oil that is high-quality, which means:
- Grown in the U.S. – For legal and quality assurance purposes
- Water-soluble – Which increases the CBD bioavailability
- Full spectrum/ Whole plant – As opposed to hemp isolate
- High purity – Enhances its effects and bioavailability
- Natural – No additives, preservatives, glycerines
It has never been easier to become a CBD distributor. Simply fulfill the steps above and you will be off to the races. If you have yet to find a supplier, be sure to reach out to the knowledgeable professionals at BioCBD+; we embrace and support any small business who wants to spread the good news about the therapeutic benefits of CBD oil products.
BioCBD+ respects and appreciates the hard work the FDA does, and the disclosure below is required by The Federal Food, Drug and Cosmetic Act.
The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from healthcare practitioners. Please consult your healthcare professional about potential interactions or other possible complications before using any product.
- Garber-Paul, E. Rolling Stone Magazine. Exclusive: New Report Predicts CBD Market Will Hit $22 Billion by 2022. (2018). https://www.rollingstone.com/culture/culture-news/new-study-cbd-market-22-billion-2022-722852/
- California Department of Tax and Fee Administration. Obtaining a Seller’s Permit. https://www.cdtfa.ca.gov/taxes-and-fees/faqseller.htm
- CA.gov. California Cannabis Portal. https://cannabis.ca.gov/
- California Department of Food and Agriculture. California Industrial Hemp Program. https://www.cdfa.ca.gov/plant/industrialhemp/faq.html