The cannabis market in the United States is booming and on an upward trajectory in growth. In fact, the 2019 update on the State of Legal Marijuana Markets published by Arcview Market Research in partnership with BDS Analytics forecasts that adult-use spending in the US and Canada will reach $14.3 billion and medical $7.9 billion by 2022.
A majority of states in the US have decriminalized marijuana, allowed it for medical use, or fully legalized it. This trend means we can expect an increase in financial opportunities in this industry. So why wait? Start making the most of the booming cannabis market with these eight ways today.
Start a Cannabis-Related Business
Depending on how much money and time you have to invest, you can start various types of businesses in the cannabis industry. Here are ideas to get your creativity flowing.
You can start a dispensary or marijuana delivery service to sell various products. Storefront retailers will need a licensed physical location, and every state has different regulations. For example, the California Bureau of Cannabis Control website details requirements for retailers.
Cannabis-infused edible products are increasing in popularity as fast as the marijuana industry is growing. This increased interest in edibles is mostly due to the fact people prefer not to smoke their marijuana. It can also be a more approachable entry point for first-timers.
Similar to starting a dispensary, you need to follow the regulations required in your state and municipality. For example, some cities allow you to create edibles in your home kitchen, but you may need some renovations.
Whether selling to a commercial business or someone growing cannabis at home, there are many supplies involved. You can specialize in providing one of the following or be a one-stop shop for all growing needs. Essential growing supplies include:
An Indirectly Related Business
You can also start a business catering to marijuana smokers that don’t involve cannabis products. For example, you can start a food truck and sell outside a popular dispensary in town. Or you can create customized subscription boxes of unique snacks or accessories aimed for marijuana customers.
Leverage Affiliate Marketing
Another way to make money is through cannabis affiliate programs, which are similar to referral programs. To earn money as an affiliate, you have to first join the program. You will then receive a unique affiliate link to promote products and services on your website, blog, or social media platforms. Every time someone uses your link to make a purchase, you will collect a commission. Most programs pay you a percentage or a flat rate for each sale referred.
For example, the Kraken Kratom affiliate program offers lifetime commissions on new customer referrals. They are a known brand of kratom powders, capsules, and extracts. Kraken Kratom gives affiliates 30 percent commission for the first sale and 25 percent for every subsequent sale. Their cookies last for 90 days, so they’ll credit you for any purchases a visitor makes within 90 days of initially clicking on your unique link.
For an extensive list of affiliate programs for cannabis-related goods and services, check out this page on THCaffiliates.
Invest in Stocks Strategically
If you don’t want to use the extensive time and money to start a business, you can still strategically invest in businesses that will indirectly benefit from marijuana legalization. This way, you can have traditional portfolio diversification while also profiting from the booming marijuana industry. Examples of companies that will benefit indirectly include:
- Activities and entertainment for smokers, such as “puff, pass, and paint” classes
- Travel companies catering to the increase of “pot tourism” to legalized states
- Retail businesses selling hydroponic and gardening supplies to cannabis growers
- Manufacturers of organic fertilizers
You can also invest directly in companies within the marijuana industry. Some of the top marijuana stocks from the beginning of July 2021 include Aurora Cannabis Inc and Village Farms International.
Grow Cannabis at Home
If you have a green thumb, you don’t need farmland to grow your own cannabis. With the right supplies and space, you can easily do it from home. There is a high demand for cannabis right now, even if it isn’t going to be smoked. You can sell your cannabis to make CBD oils, isolate, or edibles.
It can be a laborious operation. You have to take care of the plants, find customers, and market your product to stand out among competitors. However, there is a lot of money to be made, and with more states legalizing marijuana, more markets to supply.
If you don’t have a green thumb but have some chemistry know-how, perhaps extracting cannabinoids is more your route. Many pharmaceutical companies will purchase pure, isolated cannabinoids to make pharmaceutical-grade medicines. A common extraction method involves obtaining the CBD oil from cannabis flowers. The equipment you will need include:
- Fireproof bowl.
- Filtering equipment.
- Large glass jar.
Work As a Budtender or Driver
If you don’t want to grow your own cannabis but enjoy customer service and sharing knowledge about marijuana products, try a job as a budtender. A friendly attitude, love of cannabis, and the ability to handle basic purchase transactions are the main three requirements for a budtender. Most dispensaries require a high school or equivalent education to qualify. You can also do it part-time on the weekends since dispensaries are usually open all week.
Since the pandemic, dispensaries are also providing more delivery services, so another option is to drive for dispensaries. Bring the order to the customer’s address, receive the payment, and drive on to your next customer!
Create a Listing on Bud and Breakfast
Bud and Breakfast is exactly like it sounds. Similar to Airbnb, you can list your home, apartment, or guesthouse for short-term rentals. The only stipulation is it has to be weed-friendly. Most Airbnb listings have smoke-free policies, so Bud and Breakfast serve a growing market of marijuana smokers who want to toke up while hanging out in the space.
There is no charge to register your property. However, Bud and Breakfast takes a 7 percent commission off the subtotal of sales.
Provide Professional Services to Cannabis Businesses
Cannabis businesses require support services to operate similar to any other business. For all the previous businesses listed in this article and people planning to do home operations, you can offer them traditional services such as:
- Social media content creation.
- Website development.
- Photography and video production.
- Market research.
Additional services that marijuana dispensaries could use beyond SEO agencies and CPAs include:
- Interior design
- Custom furniture and art installations
- HR and staffing
- Patent and trademark law services
- Insurance services
The booming cannabis market in the US is mostly due to the increased legalization and decriminalization of its use. More research has found medical uses for CBD, and more people are enjoying the various ways to consume it beyond smoking. Now is the time to get creative and profit from this industry since the forecasts are only sunny skies ahead.