RECURRING REVENUE WHERE MEGA TRENDS CONVERGE: CBD, HEALTH AND E-COMMERCE
We are a major driving force behind many CBD retailers and startups. Below, Edmon Mamane, the CEO of Terravidaonline.com will explain this giant phenomenon – and how we help businesses and entrepreneurs to get involved.
Smart entrepreneurs study trends and focus on businesses with a recurring clientele with a long lifetime value. The CBD market is literally located at a converging point of mega trends in health and e-commerce – with recurring revenue. Yet there is a greater purpose to everyone who get’s involved with this: it is an opportunity to do good, especially in light of helping alleviate the opioid crisis and bringing hope to people who previously reached a dead end due to personal illness.
Typically, in the life of every entrepreneur, there comes a time when they identify a major opportunity. In the case of CBD, it is a compelling case for action: doing something good and being involved in one of the biggest trends of our time.
Now that governments and academia collaborated for years to clarify misconceptions, there is no longer any moral confusion: we know that CBD is certainly not pot or weed. This, enabled the industry to pass a critical tipping point – where many Doctors now recommend that patients use it.
Understanding the magnitude of the market:
When researching the viability of a new e-commerce or other business type, search demand is a key indicator. Below, we notice exceptionally strong consumer demand in the US and Europe for existing trends like, anxiety, depression, psoriasis, alzheimer, arthritis, acne, cancer, therapeutic pet food and skin care. According to a growing number of credible medical research sources, the one product for managing symptoms of all these conditions, is CBD or cannabidiol.
Imagine a business the scoops just a tiny percentage of web traffic in relation to the above search terms? We can see that CBD itself is a major new trend, but what makes this such a phenomenal trend is the fact that it is benefiting indirectly from existing search engine volume demand as explained. When millions of people desperately search to find answers and options to deal with numerous challenging health conditions – and new medical research – together with a growing number of Doctors point them in one direction, it solidifies the demand and purchase intent, since CBD is endorsed by such a growing number of credible sources.
What enabled CBD to become such a mega trend?
To appreciate why this is such a viable business opportunity in both the US and Europe and other parts of the world, here is a summary of factors:
Firstly, this would not have been possible without credibility: The consumption of CBD is backed by the research and medical institutions, including Universities and Doctors. Now, with scientists debunking the myths, people understand that cannabidiol is not “pot” or “marijuana”. This then led to Doctors developing the confidence to propose the use of CBD for a long list of health issues.
Secondly, we have seen that both US and EU states moved in tandem to legalize the consumption, production and supply of CBD products, an area which is rapidly evolving. Thirdly, in the US there is the political will to turn the tide against the opioid addiction, since was so bad it reduced the overall life expectancy in the country. With CBD being one of the only viable non-addictive alternatives for those who give up opioids – it is a solid case to re-enforce the trend.
Thirdly, as explained above, other significant trends were already in place for a plethora of medical conditions. All about CBD
With all these events falling in place, the most logical business question to ask, is what are the barriers to entry in order to participate in this sizeable market? Those with millions of dollars behind them, who consider it an option to re-invent the wheel, may explore the production end. However those with just a few thousand dollars, can enter this market provided that they are backed by a reliable production lab. This eliminates the need for costly R&D expenditure, enabling a new brand to go straight to market.
How barriers to entry were removed through white-labelling and dropshipping:
Terravidaonline.com is one of the leading manufacturers of non-GMO certified CBD products in the US. With end to end supply chain management, it is the driving force behind many entrepreneurs and online health businesses who are profiting from these mega trends. The group philosophy at Terravidaonline.com is this: People take their health seriously and are unlikely to purchase inferior products. Therefore, the quality has to be exceptional. This in turn, is rewarded by a longer lifetime value, reflected by more client loyalty and repeat orders.
Their labs developed a full CBD product range, that covers CBD hemp oil, creams, anti-ageing creams, multi-vitamins infused with CBD, pet food and many more. With this in place, the company moved to enable entrepreneurs to create their own CBD brand by producing this in white-label and by dropshipping the product globally.
Ways to seize the market:
With your own branded CBD product range (backed by Terravidaonline), it is time to turn the focus and budget to marketing. The market can be entered through one or a combination of ways.
Buying up health websites:
Existing health websites or online health stores that do not sell CBD, can become much more profitable if an entire range of CBD products are added. One of the easiest ways to launch a CBD brand overnight, is to acquire existing health websites and then roll out your new CBD brand as a product that can be bought online.
Opening a new branded website:
Since competition levels are not high compared to other e-commerce trends, it is possible to start a new branded website that matches a CBD brand – and to generate results.
Investing in digital PR:
Whether to promote existing health websites or a new branded website, a good digital PR campaign can take a new CBD brand to market. More mainstream news sites than ever are becoming PRO CBD, which increases the chances of launching a brand rapidly.
Building an Amazon storefront:
Amazon can be a great channel in two ways. Firstly, by creating a new Amazon storefront and by boosting it with Amazon pay-per-click. Alternatively, a strong existing storefront can be acquired, after which one can simply adding a new branded product to it.
Building a strong affiliate network:
The number of large Affiliate networks around the world is substantial. By offering a reasonable commission on this appealing product that has recurring revenues, many affiliates would jump at the opportunity to help ride this trend.
There are off course numerous offline supply networks that can be seized too – which will be great vehicles for a new CBD brand. It is therefore useful to sit down with a marketing expert to chart out the best way forward. A key attraction point is that with zero franchise or R&D fees and your own brand, a substantial portion of funds can be dedicated to measurable e-commerce demand generation.
The key attraction about the CBD industry is this:
CBD is a major new trend were serious, ethically sound players with a long-term vision can build a business for life. The E-commerce landscape provides the opportunity to do this on a global scale. Given that there are so many millions of people suffering from diseases on an ongoing basis, the recurring revenue component
Next step? Establishing your own global CBD brand:
Terravidaonline.com welcomes sensible business people who look forward to profit from this trend to reach out to us. Those who require a reliable business partner behind the scenes, to enable them to be successful in starting a global CBD brand should reach out today.
Contact our business development team today.