Conquering The Challenges Of Marketing And Selling CBD

Jan 21, 2022

The CBD industry is booming. So much so, that the market is expected to hit $16 billion by the year 2025 in the US alone. According to the Brightfield Group, a survey of 5,000 people revealed that over 60% of CBD users have taken it to ease their anxiety. This was closely followed by chronic pain, insomnia, and depression.

What Is CBD?

Cannabidiol or CBD is a chemical compound derived from the cannabis sativa plant. Cannabis that contains 0.3 percent or less of THC (tetrahydrocannabinol) is known as hemp. Last year’s Farm Bill legalized hemp under Federal Law. 

What Are The Benefits?

The reason behind the hype and popularity of CBD is that it is “psychoactive” which means it does not produce any mind-altering effects. It also offers a vast array of health benefits without worrying about getting high. It is marketed to relieve common, modern-day ailments such as anxiety, depression, and post-traumatic stress disorder. 

When CBD is applied topically or consumed through smoke inhalation, even by edible consumption, it interacts with neuroreceptors within your endocannabinoid system. This sends signals between your cells to help manage your mood, movement, and immune system.

FDA Issues Serious Concerns

Although many scientifically-backed studies have confirmed CBD’s health benefits, the FDA is not entirely convinced of its safety. 

The FDA’s Principal Deputy Commissioner Amy Abernethy, M.D., Ph.D. had released this statement:

 “We remain concerned that some people wrongly think that the myriad of CBD products on the market, many of which are illegal, have been evaluated by the FDA and determined to be safe, or that trying CBD ‘can’t hurt.’ Aside from one prescription drug approved to treat two pediatric epilepsy disorders, these products have not been approved by the FDA and we want to be clear that a number of questions remain regarding CBD’s safety – including reports of products containing contaminants, such as pesticides and heavy metals – and there are real risks that need to be considered.”

The FDA’ “Consumer Update” report has raised specific safety concerns related to the use of CBD products such as possible liver injury, interactions with other drugs, diarrhea, and changes in mood. 

The FDA has issued warning letters to companies that have violated the FD&C Act. These companies have marketed their CBD products to treat diseases and for other therapeutic uses for animals and humans. Additional violations include marketing CBD products as dietary supplements. Adding CBD to human and animal foods is prohibited. 

Treading Carefully With CBD Marketing

As CBD laws and regulations continue to evolve, merchants would fare well if they abide by the FDA’s regulation on marketing CBD products. For example, steer clear of releasing Google Ads for your CBD products if the CBD oil is taken from cannabis. You can market it if it comes from hemp. 

Also, do not tout CBD’s health benefits. It is simply not worth the trouble it can bring. As of 2021, you are able to advertise your CBD products on both Instagram and Facebook. However, you need to ensure that these products are entirely “hemp-based topical products.” This can include ointments and oils you can directly apply to your body. Do not include anything that you can consume. 

When it comes to your landing pages, ads, and your copywriting, you can’t mention CBD. Focus your social media strategy and efforts on providing value rather than selling.

There Are Legal Workarounds

Although there seems to be a lot of confusion and misconception tied to the use of CBD products, the general public and the federal government are making strides in making some changes for CBD to gain wider acceptance. 

For now, it would be prudent to follow the aforementioned tactics so that you not only follow the rules but grow your CBD business

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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